Any current/future new fundraising through debt or equity?

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 l

Any current/future capex/capital investment/strategic investment?

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. Fu

Future growth expectations in sales/revenue/volumes?

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 activiti

Future growth expectations in earnings/operating earnings/profits/EPS?

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 expec

Current/ Expected Orderbook/ Pending Orders?

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.

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S Chand & Company LtdQ1 FY23Printing & Publication

S Chand & Company Ltd Q1 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹151P/E: 11.4Market Cap: ₹568 CrSector: Printing & Publication

Management growth scorecard

Revenue

Category 2

Margin

Category 2

Fundraise

Order

N/A

Capex

0 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 2

→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)

Margin guidance

Category 2

→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).

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Fundraise plans

→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.

Order book

→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.

Capex plans

→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.

How does S Chand & Company Ltd rank vs peers in Printing & Publication?

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