DEAR SHAREHOLDERS,
FY 2023-24 has been a milestone year for S Chand on many fronts. I am pleased to share
with you the remarkable progress we've made over the year. Our unrelenting focus on S
Chand 3.0 and financial discipline has propelled us to new heights, and I am excited to
discuss our key accomplishments and future opportunities. Thank you for your continued
trust and support as we embark on this journey of sustained growth and success.
We recorded the highest operating revenues in five years, marking a 9%
YoY increase to ' 6,626 million. Our EBITDA and EBITDA margin also reached their
highest levels in five years, showing a 14% YoY growth to ' 1,098 million. Our
operating income surged to ' 484 million, an impressive 65% increase compared to
the previous year. We are delighted to announce an annual dividend of ' 3 per share
for FY 2023-24.
Additionally, we achieved the highest operating cash flows in the company's history,
amounting to ' 1,211 million.
Our greatest achievement has been the significant improvement in our working capital
metrics, which are now at historic lows. This has allowed us to free up significant cash,
enabling us to become net debt-free at the end of the year with a net cash balance of '
600 million. Our commitment is to sustain this positive momentum and enhance our financial
position over the long term.
Our legacy spanning over eight decades, combined with the expertise of our experienced
team, has been pivotal in maintaining our market position.
Throughout the years, we have witnessed dynamic changes within the education sector.
Yet, our commitment to innovation and operational excellence has remained resolute.
The year witnessed the landmark announcement of the National Curriculum Framework for
School Education (NCF-SE) in August 2023, after an 18-year gap. We see it as a catalyst
for change and aim to seize this opportunity over the next 2-3 years. However, despite the
announcement, the impact on the Revenues of FY 2023-24 was minimal, as NCERT did not
release
new syllabus books until April 2024. Consequently, the adoption of new syllabus books
was lower. We expect wider adoption of new syllabus books to happen in the FY 2024-25
sales season.
Our strategic partnerships have allowed us to expand our offerings, tailored to
evolving customer preferences.
We have successfully launched books aligned with the new curriculum and are planning to
release a comprehensive range of updated syllabus books in FY 2024-25. This proactive
approach will enable us to enter the FY 2024-25 sales season with a larger repository of
new syllabus books for our target audience. We expect FY 2024-25 and FY 2025-26 to see
maximum adoption of new syllabus books in schools, driving our growth trajectory.
In the higher education and test prep segment, we faced challenges due to shortened
semesters and uneven implementation of the National Education Policy (NEP) across states
in the various higher education institutes across the country. Additionally, fewer
government job vacancies and stiff competition from YouTubers impacted this segment. We
focus on improving our performance by strengthening collaborations with influential
YouTubers and creating content relevant to a larger customer base.
Our YouTube channel, S Chand Academy, continues to be a phenomenal success. We have
launched over 1,800 videos focused on higher education topics, including science,
engineering, and test preparation, amassing over 22 million views and 2,50,000
subscribers.
This year, we plan to add another
800 videos for both the school and college segments. We also launched Solid Steps, an
integrated K-5 curriculum solution aligned with the core concepts of the NEP 2020 and
designed to meet NCF 2023 guidelines. This program empowers young minds with essential
skills such as critical thinking, creativity, and a love for learning. Additionally, our
K-8 curriculum solution, Mylestone, continued to provide holistic learning to schools in
India and the Middle East.
Drawing upon our extensive knowledge and expertise, we strive to cater to the learning
needs of our students and empower them to excel in an ever- evolving world. We anticipate
significant advancements in the education landscape and ensure to remain at the forefront
by offering innovative, high- quality content.
I extend my heartfelt gratitude to all our stakeholders, customers, employees,
shareholders, and board members for their unstinted trust and support.
We look forward to your continued engagement as we strive to make a meaningful impact
in the realm of education and achieve sustainable growth.
With best wishes,
DESH RAJ DOGRA
Chairman