S Chand and Company Limited continues robust growth in 1HFY23, Operational revenue increased by 76% in H1FY23.
New Delhi: S Chand and Company Limited, one of India’s leading education content companies and market leaders in the K-12 segment, has announced robust financial numbers during the period 1HFY23 and Q2FY23.
HIGHLIGHTS OF CONSOLIDATED BUSINESS
Consolidated business represents the performance of S Chand and its subsidiaries (S Chand Group)
Consolidated Business H1-FY23 vs H1-FY22 (Y-o-Y basis)
The Company is in a seasonal industry where the 4th quarter contributes over 80% of the annual revenues coinciding with the start of the academic year.
1. The Revenue from Operations of the Group has increased to Rs. 155 Crores vs Rs. 88 Crores in the same period last year. The Revenue from Operations registered a growth of ~ 76% on YoY basis.
2. The EBIDTA Losses of the Group decreased by 92% to a loss of Rs. 3 Crores from a loss of Rs. 38 Crores YoY during the 1st half of the year.
3. The Losses after tax of the Group declined by 81% to a loss of Rs. 14 Crores from a loss of Rs. 73 Crore YoY during the 1st half of the year.
Other Highlights
1. Highest ever H1 Sales in company’s history.
2. Lowest Receivable days in H1 in the past 5 years.
3. Lowest Net Working Capital days in H1 in the past 5 years.
4. On the investments front, the company made a profitable exit from the sale of the stake in Testbook for approx. 180m during the quarter. This translates into a 7.8x return over the initial investment
5. S Chand Academy crosses 50k subscribers and 6 million views
Mr. Saurabh Mittal, CFO, S Chand and Company Limited, commented on the successful result, said, “We are pleased to announce the excellent growth figures and reduction in losses over H1 FY23. S. Chand Group, offers content, solutions, and services across the education sector. We recently saw the launch of National Curriculum Framework or NCF covering classes from Pre-Primary to Class 2 in October 2022. With this announcement, we look forward to more such announcements for other classes coming through over the next couple of quarters. We have already started creating new content based on the new curriculum for these classes and we shall see the sale of those happen during our upcoming sales season of January to March.”
He added, “We are pleased with the improvement of working capital metrics over the past one year which has helped reduce debt substantially, and we look forward to being zero net debt by the end of the year. Schools and Colleges reopening has spurred demand in H1 which will accelerate in H2 , as students are back to physical interaction with their teachers and mentors after a period of two years. Implementation of NEP 2020 and NCF will further spur this demand in the coming two-three years.”