With a revenue forecast of over 25% for FY23, S Chand is a pioneer in blended learning

S Chand & Company Ltd made PAT profitable in FY22 after three years of battling national education policy uncertainty and disruption caused by multiple Covid-19 induced lockdowns, which resulted in the closure educational institutions nationwide. The company has not only exceeded street expectations with flying colors with its strong improvement in working capital metrics, cost control, product streamlining, debt reduction and strong operating cash flow, but it also gave a revenue growth forecast of more than 25% for FY23. entire product portfolio. Additionally, the company has also forecast revenue of Rs 90 crore to Rs120 crore for the first quarter of FY23, more than 3 times the growth on an annual basis.

The S Chand Group has now fully integrated its content business acquisitions with the EdTech initiatives of the past few years to arrive at a stage where it can leverage the full portfolio of offerings to increase margins and drive profitable growth across the business. which evolves into a mixed/hybrid form. The hybrid format gives the group an advantage as it has a direct link with millions of students/teachers and thousands of institutions. In terms of strategy, the S Chand Group does not subscribe to the notion of spending huge cash to acquire customers like most EdTechs had done during the Covid-19 pandemic and now, with growing funding. rarer, growth challenges are faced with cost. – cuts and layoffs.

Over the past few years, the company has made strategic minority investments in EdTech start-ups where there is a strong founding vision and a great idea or product or solution that complements the areas where S Chand can help scale the business by leveraging its network and experience in the Education Space. The company took its first full exit from a December 2015 investment in Testbook Edu Solutions; a digital platform geared towards competition preparation. The company generated an almost eightfold return with the sale of its entire stake in July 2022. Although it sold its holdings, it will continue to collaborate with TestBook on the “Smart Book” series for the exam segment .

Although the company has said it does not plan any major short-term investment in marketing and expects its cash burn on its digital efforts to decrease significantly, it will continue to focus on innovation. and organic growth, is to be boosted by the review of the National Curriculum Framework (NCF) after 17 years, the latest dating from 2005. The company is equipped to take full advantage of the blended learning environment which is emerging as the new normal for the post-pandemic era. Smart Book is the quintessential example, a physical book created after processing the performance data of thousands of Testbook students combining the convenience of physical study material with the strengths of ed-tech.

Its internal digital initiatives include S Chand Academy, a YouTube channel that contains modules with over 550 videos covering a variety of topics and topics for test prep and college exams. The videos are supplemented by S Chand’s best-selling books on the theoretical and practical aspects of each subject and the video itself contains links to e-books. The channel has over 25,000 subscribers and over 3.8 million views so far and has gained popularity in less than a year since its launch. The company plans to increase the number of videos to over 1,000 over the next 6 months. Whether it’s textbooks, digital content, educational solutions for students and teachers, a learning management system (LMS) or a standalone application, S Chand has proven why it enjoys strong brand recognition and has established itself as a preferred service provider.

In an effort to achieve greater economies of scale, the company restructured and reorganized its business operations and merged some of the smaller subsidiaries into the holding company to increase efficiency and opportunity. Additionally, it has taken a number of steps in the past fiscal year to improve margins in its core business and is preparing for the National Curriculum Framework, which when announced will give it an even better growth path. for at least two to three years.

Going forward, rising paper prices continue to be a source of concern for the Indian publishing industry. The industry has seen an increase in the cost of all types of paper, which can be attributed to a variety of factors, including an increase in the base price of raw materials. All paper mills have raised prices and cut credit, which may hurt small businesses and cause the industry to further consolidate, giving organized businesses like S Chand more strength and influence. With price increases, better terms with distribution partners, ongoing cost control, integrated process and internal efficiencies, the company will be able to combat this cost increase.

From humble beginnings in 1937 in the narrow, winding lanes of Chandni Chowk in Delhi and its mission to publish Indian authors during the colonial era, the company has grown into one of the largest national publishers and exporters with over 30 branches. , making education relevant, affordable and accessible to students from all walks of life. S Chand Group has always been able to demonstrate time and time again that not only does it have a rich heritage with an illustrious history, but a bright future and a permanent place in the honor roll of Indian education.

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