In the recent concall, the management stated that they wish to focus on their core publishing business rather than edtech businesses. They mentioned additional spends on edtech business won’t scale the revenues by significant amount. Hence, they will cut back on edtech spends.
Secondly, they mentioned that paper was no more available on credit to entire publishing industry. This will really help the big players becoming bigger, if the big players will be able to secure raw material timely and lead to market share gains. So far, they have secured most of the raw material supplies for the year and only 20% or so it left to be procured. (They import paper and buy from West Coast, Kuantum Papers in the domestic markets). Paper cost is 20-25% of their total cost as highlighted by management in the concall.
| Subscribe To Our Free Newsletter |
