S Chand & Company Ltd

- No plans to raise private equity or external funds for the Mylestone segment as internal cash flows are sufficient. - The company is practically debt-free with strong cash flows of Rs 80-100 crores annually. - There is no intention to raise additional debt or equity at the moment. - Future capital allocation involves small ticket investments in EdTech or education-related minority stakes. - No large capex or major acquisitions are planned that would require external funding. - Management plans to maintain dividend payouts around 20-25% of EPS. - Cash generation is expected to continue, with surplus cash likely to be returned to shareholders or used for minor strategic investments.

- No large capex or major acquisitions planned currently. - Expect to continue small ticket-size EdTech or Education-related strategic investments, primarily by taking minority stakes in ventures that align with the company’s business. - Content development spend expected to increase slightly by around Rs 5 crores over the current maintenance capex of approximately Rs 10 crores. - The company remains asset-light with no significant capital expenditure anticipated beyond these amounts. - Surplus cash expected annually will be managed along with a consistent dividend payout policy of 20-25% EPS payout. - Future investments will be selective and focused on areas that complement existing operations, with no large-scale capital deployment planned in the near term.

- FY24 volume growth expected around 9%, with price-led value growth approximately 18% for FY23. (Page 7) - FY24 overall growth guided at single-digit value growth; price hikes expected in the range of 6%-8%, remainder volume-driven. (Page 7) - New curriculum (NCF) announcements anticipated in CY23 expected to drive strong volume, revenue, and profitability growth over 2-3 years. (Page 5) - Mylestone business targeting 30% growth this year, from approx Rs15-16 crores to Rs22-23 crores, with expectation of EBITDA positivity. (Page 14) - Growth drivers include increased sales promotion, marketing activities, and ability to gain market share as smaller players face financial challenges. (Pages 10-11) - New curriculum content development will ramp up, especially in content teams over next 2 years. (Page 12)

- FY24 guidance projects operating revenues between Rs 720 crores to Rs 750 crores (Page 20). - EBITDA margin targeted in the band of 16%-18% with expectations of gross margin improvement if paper prices stabilize or decline (Pages 5, 16). - Volume growth anticipated to be around 9% with price hikes contributing 6-8%, leading to total value growth of approximately 18%-23% for FY23/FY24 (Pages 7, 15). - Net profit saw a significant jump with PAT increasing 616% to Rs 576 million in recent results; strong profitability expected to continue (Page 4). - Cash flows stabilizing with operating cash flows expected between Rs 90-110 crores; free cash flow positive going forward (Pages 3, 19). - Dividend payout planned at 20-25% of EPS, highlighting steady earnings distribution (Page 19).

- As of the call, S Chand has not procured inventory for the entire next season. - Current inventory is sufficient for about 4-5 months, covering roughly Q1. - Orders for inventory for the next season are planned to be placed by June or July. - Inventory receipts will begin from August and continue for the next 7-8 months. - Paper procurement depends on price movements, with purchases planned after prices stabilize or soften. - Approximately 80% of orders involve imported paper with longer lead times (60-75 days). - The company manages inventory for the full academic session rather than quarterly.