(AP.!H) - NSE India...NCERT and State Boards will publish the textbooks based on NCF. Company will...

NEL/NSE/117/2020

The SecretaryNational Stock Exchangeof India Ltd.Exchange Plaza, 5th Floor, Plot No. C/l,'G' Block, Bandra-Kurla Complex,Bandra (East), Mumbai - 400051.

Dear Sirs,

Knowledge is wealth

Date: 12thAugust, 2020

Scrip Code- NAVNETEDUL .Sub: Submission of presentation being shared with analysts and institutional investors onStandalone and Consolidated Un-audited Financial Results for the quarter ended 30th

June/2020.

In accordance with Regulation 30 of the SEBI(Listing Obligations and Disclosure Requirements)Regulations, 2015, we hereby submit Ql FY21 presentation which is being shared with analystsand institutional investors on Statement of Standalone and Consolidated Un-audited FinancialResults for the quarter ended 30thJune, 2020.

The said presentation is uploaded on Company's website www.navneet.com.

You are requested to take note of the above.Thanking you,

Yours faithfully,FORNAVNEET EDUCATION LIMITED

(AP.!H)COMPANY SECRETARYEncl.: as above

NAVNEET EDUCATION LIMITEDCIN: L22200MH 1984PLC034055

Navneet Bhavan, Bhavani Shankar Road, Near Shardashram Society, Dadar (W), Mumbai 400 028. India.Tel.: .022 6662 6565 • email: [email protected] • www.navneet.com • /navneet.india

A Premium Education

HouseInvestor PresentationAs On 30th June 2020

031 Company Overview

2 05National Education Policy; 2020

3 11Financial Performance

Table Of Contents

COMPANY OVERVIEW

Earnings Presentation 4

ABOUT NAVNEET

Navneet Education Limited, founded by the GalaFamily, is an educational syllabus-basedsupplementary content provider in Print & Digitalmedium and a manufacturer of Scholastic Paperstationery for domestic and international markets.New range of text books for students of CBSE andICSE Boards are sold across India.

Over the years, the company has built a strongbrand in the Educational Content & ScholasticStationery gaining a leadership position. Thecompany has a dominant market share of about65% in western India.

National Education Policy

2020


Key Features of NEP with respect to Content business

Emphasize Conceptual learning

Recognizing and identifying unique capabilities of students

To encourage logical decision making and innovation

Focus will be on achieving desired learning outcomes at all levels

Continuous tracking of learning outcomes of each child

Introduced Early Childhood Care and Education (ECCE)

Introducing Vocational Education at all levels

To bring back drop out children back to school

Use and integration of technology

Assessments at key stage in class 3,5 and 8 to track achievement of a child

Reforming examinations in grade 9 to 12 including Board exams in grade 10 and 12

Improving Teacher Education


Transforming Curricular & Pedagogical Structure


Timeline for Implementation of ECE and New Assessment pattern


Navneet’s view on NEP, 2020

A Visionary journey introduced to transform the education system and its outcome. Private players including

Navneet will have to play key role to make this vision successful.

A detailed program of action is awaited and post that National Curriculum Framework (NCF) shall be rolled out

NCERT and State Boards will publish the textbooks based on NCF.

Company will publish supplementary books based on the same and publish various textbooks and extra-

curricular books to support the outcomes expected in NEP. As per the present plan announced, there will be

continuous change in curriculum starting 2021

Huge opportunities to bring out various digital products focussing the key outcomes expected in NEP will be

focussed.

Overall, with emphasis on increasing literacy rate, NEP shall have positive impact on the business

FINANCIAL PERFORMANCE

Q1FY21


The Business of Navneet is highly seasonal in Nature with Q1 accounting for 50-55% of Total Annual Revenues of the Company with more than 75 % profitability as more than 62 % of Publications revenue is normally done in Q1. On the back of pandemic we are seeing delays in schools and educational Institutions re-opening.

We had sensed the impact of Pandemic in advance and accordingly started controlling production from early March 2020 with a view that whenever situation normalizes, we will speed up the production and satisfy markets / customers at right time. With this we have good control over Inventory and similarly we are not seeing any financial impact of Pandemic on our trade except the delays in sales.

We hope to see Schools re-opening soon based on the various communications from the Government. Optimistically we hope the large part of Revenues shall shift from Q1 to Q2 and Q3. Though most of the SSC medium schools (our target audience) have not been able to implement usage of digital and Online teaching even during this Pandemic, the need to implement the same soon has been felt by most of them. Apart from the strong digital content for our target markets is ready with us, we are exploring various new innovative digital initiatives which suits our target audience.

It is important to note that we have taken some key steps to Fortify against the wastages of the costs; not only for the ensuing year but for the years to come. Some of the notable cost optimization measures which have been initiated across various operational levels which will help us in a long way to go:a) Right sizing of the employee baseb) Re-negotiating the various contracts for various costsc) Improve Production Planning so that working capital does not gets tied up in the Inventoryd) Procuring the optimum Raw Material Inventorye) Putting the control checks for checking on the wastages of Costsg) Using Video/ Audio Calls for various meetings and thereby avoiding Travel Costs.

Impact of CoVID – 19 Pandemic and Business Response


SEGMENTAL REVIEW - QUARTERLY

Q1 FY21 12,359 4,612 15,470

Q1 FY20 43,218 10,944 25,304

Publications Stationery - Domestic Stationery - Exports

Segmental Revenue

80,483

-59 %

71% 58 %

(INR in Lacs)

1,965

39 %

80,483

32,713

Q1FY 20 Q1FY 21

Total Revenue24,127

8,006

Q1FY 20 Q1FY 21

EBITDA

67%

22,622

6,817

Q1FY 20 Q1FY 21

PBT

70%


STANDALONE FINANCIAL RESULTS – Q1 of FY’21(INR in Lacs)

Q1 FY21

(Actual)

% of

Revenue

Q1 FY20

(Actual)

% of

Revenue

Income from Operations 32,487 79,499

Other Income 226 984

Total Revenue 32,713 -59.4% 80,483

(a) Cost of materials consumed 11,332 26,102

(b) Purchases of stock-in-trade 4 25

(c) Changes in inventories 5,586 15,643

(d) Employee benefits expense 3,238 3,831

(e) Depreciation and Amortisation 829 804

(f) Other expenses 4,547 10,755

Total Expenses 25,536 57,160

Profit / (Loss) from ordinary activities 7,177 22% 23,323 29%

Exceptional Items - -

Profit / (Loss) after exceptional Items 7,177 22% 23,323 29%

Finance Costs 360 701

Profit / (Loss) before tax 6,817 21% 22,622 28%

(a) Provision for Taxation 1,852 8,491

(b) Provision for Deferred Tax (36) (612)

(c) Excess/(Short) Provision (64) -

Net Profit / (Loss) after tax 5,065 15% 14,743 18%

Other Comprehensive Income (OCI) net 705 (318)

Total Comprehensive Income 5,770 18% 14,425 18%

EBITDA 8,006 24.6% 24,127 30%

Particulars

Quarter ended June‘20


RECEIVABLES & INVENTORY DAYS

48

41 45

53

75

42

62

75

120 114

79

66

119

111

128

Jun-19 Sep-19 Dec-19 Mar-20 Jun-20

Receivable Days FG Inventory Days RM Inventory Days

NEL Restricted 15INVESTOR PRESENTATION

Consolidated Financial Results – Q1 of FY’21

Q1 of FY'21 Q1 of FY'20 Q1 of FY'21 Q1 of FY'20 Q1 of FY'21 Q1 of FY'20

NEL 32,487 79,499 8,006 24,127 5,065 14,743

eSense 110 907 (255) 231 (397) 108

Indiannica 603 729 (607) (424) (747) (777)

NLLP - - (0) (0) (0) (0)

NHKL 90 57 (0) (0) (0) (0)

K12 85 549

Inter co Adjust (90) (40) (76) (95) (68) (12)

Total 33,199 81,153 7,068 23,839 3,938 14,610

(INR in Lacs)

Revenue from Ops Summary of EBITDA Summary of PAT


Publications eSense (E-Learning) Stationery & Exports

Publication Business for the ensuingyear is lot dependent on the Schools re-opening. As per the information receivedthe Schools shall re-open in a phasedmanner from the month of September.The Company has started receivingorders from the Distributors/ Traders.The Company is closely monitoring themovement and shall ensure that theBusiness is not lost.

The demand for online education hasincreased during this lock down period.More than 470 schools have startedinquiring our Top-Class product andhave started placing orders. Our outlookfor this Business seems to be bright.

Exports will continue to grow at a goodpace backed by orders. Due toLockdown there were quite a few orderswhich were cancelled as we could notcater to them due to our factories beingclosed.

OUTLOOK ON BUSINESS SEGMENTS


22,610

27,444 26,39130,703

34,35123.7% 24.7% 22.7% 22.2%

23.4%

10. 0%

12. 0%

14. 0%

16. 0%

18. 0%

20. 0%

22. 0%

24. 0%

26. 0%

10, 000

15, 000

20, 000

25, 000

30, 000

35, 000

40, 000

FY16 FY17 FY18 FY19 FY20

EBITDA & Margins (%)

EBITDA Margin

12,614

16,164 15,32117,747

21,93513.2% 14.5% 13.2% 12.9%

15.2%

0.0 %

2.0 %

4.0 %

6.0 %

8.0 %

10. 0%

12. 0%

14. 0%

16. 0%

5,0 00

8,0 00

11, 000

14, 000

17, 000

20, 000

23, 000


PAT & Margins (%)

PAT Margin %

19,585

24,598

23,44527,071 29,514

20.2%

22.3%

19.0%19.9% 20.4%

5.0 %

7.0 %

9.0 %

11. 0%

13. 0%

15. 0%

17. 0%

19. 0%

21. 0%

23. 0%

25. 0%

0

5,0 00

10, 000

15, 000

20, 000

25, 000

30, 000

35, 000


PBT & Margins (%)

PBT Margin %

95,2981,11,333 1,16,145

1,37,9921,46,719

-1.1%

16.8%4.3%

18.8%6.3%

-70.0%

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0 %

10. 0%

20. 0%

30. 0%

50, 000

70, 000

90, 000

1,1 0,000

1,3 0,000

1,5 0,000

1,7 0,000


Total Revenue & Growth (%)

Revenues Growth

STANDALONE FINANCIALS (LAST 5 YEARS)

CAGR : 11.4 %

CAGR : 10.8 %

CAGR : 11.2 %

CAGR : 14.8 %

(INR in Lakh)


6301674,230

82,205 87,196

99,45531.60%33.60%

29.20%32.40%

31.00%

11. 00%

16. 00%

21. 00%

26. 00%

31. 00%

36. 00%

0

20000

40000

60000

80000

100000

120000

140000


ROCE %

Capital Employed ROCE %

15.81

23.8721.65

14.3411.48

0.00

5.00

10.00

15.00

20.00

25.00

30.00


Price to Earnings

PE Ratio

63,398 72,560

80,841 87,196 96,572

20.2%22.3%

19.0% 20.4%22.7%

-3.0%

2.0%

7.0%

12.0%

17.0%

22.0%

27.0%

-

20,000

40,000

60,000

80,000

1,00,000

1,20,000

1,40,000


Net-worth & Return on Net-worth %

Networth Return on NW %

5.306.80 6.56

7.67

9.58

0.00

2.00

4.00

6.00

8.00

10.00

12.00


EPS

EPS

PROFITABILITY & OWNERSHIP PERFORMANCE

(I in Lakh)


SHAREHOLDING PATTERN AND MARKET CAP

Trusted by 25,000+ Shareholders

Face Value of Rs. 2/- per share

Stock Code:

BSE : 508989

NSE : NAVNETEDUL

Bloomberg / Reuters: NELI IN / NAVN.BO

For analysts coverage on Navneet visit:http://www.navneet.com/research-reports/

(INR in Mn)Market Cap

Promoters

62.38%Domestic

Financial

Institutions16.50%

Public

15.15%

Foreign

Institutional

Investors3.77%

Other Body

Corporates

2.20%

Shareholding Pattern as at June 30, 2020

37,953

33,352

24,947

14,179 17,520

-

10,000

20,000

30,000

40,000

50,000

60,000

31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 30-Jun-20

NAVNEET EDUCATION LIMITEDCorporate Identity Number L22200MH1984PLC034055

Corporate Office & Regd. Office : Navneet Education Limited, Navneet Bhavan, Bhavani Shankar Road, Dadar-(West), Mumbai –400028.

Website: www.navneet.com

E-mail Id: [email protected]

Investor Relations ContactRoomy Mistry | Head - Investor Relations | Navneet Education Limited

Address: Navneet Education Limited | Navneet Bhavan | Bhavani Shankar Road, Dadar-(West), Mumbai – 400028.

Phone: +91 22 6662 6565 | Mobile: +91 98199 58878

Email Id: [email protected]

CONTACT DETAILS

http://www.navneet.com/mailto:[email protected]

NSE_PresentationNSE_PresentationNavneet Earnings Presentation - Jun 20

Navneet Earnings Presentation - Jun 20

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