- Q1 FY25 was a steady quarter despite national elections and heatwave impacting school operations
- Consolidated operating revenues were Rs 1,107 million, similar to Q1 last year
- Highest ever gross margins at 72% vs 69% last year
- EBITDA of Rs 84 million vs Rs 136 million last year
- Minor PAT loss of Rs 30 million vs Rs 11 million profit last year
- Lowest Q1 working capital metrics in company history - receivable days below 100 for first time
- Net cash position of Rs 882 million, up from Rs 600 million in Q4 FY24
- Engaged in content licensing partnerships with tech majors for Gen AI/LLM models
- Forging strategic partnerships in test preparation segment
- Focus on hybrid/blended learning model combining physical books and digital content
- Limited adoption of new NCERT curriculum by schools so far
- Expecting 40-50% adoption of new curriculum by schools this year if NCERT releases books on time
- Full adoption expected to take 2-3 years
- Expecting double-digit operating revenue growth in FY25
- Upgraded EBITDA margin guidance to 17-19% range
- Gross margins expected to be higher in FY25
- NCERT expected to release new syllabus books for more classes by end of 2024
- S Chand has books ready for all classes under new curriculum
- Timing of NCERT book releases crucial for adoption and revenue impact
- Full benefit of NCF expected to reflect in 2-3 years
- Focus on blended learning approach with digital supplements to physical books
- S Chand Academy, TestCoach and other digital platforms currently free, monetization expected in future
- New revenue stream from content licensing for AI models
- Maintaining strong cash position, not considering share buybacks currently
- May look at buybacks next year if cash reserves cross Rs 100 crore threshold
- Well-positioned to benefit from NCF implementation over next 2-3 years
- Focusing on blended learning and digital content alongside core publishing business
- Strong working capital management and cash position
- Confident of double-digit growth and margin expansion in FY25
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