Publishing company Navneet Education announced Q1FY24 results:
- Revenue of Rs 791.5 crore in Q1FY24 compared to Rs 693.7 crore in Q1FY23, up 14.1% YoY
- EBITDA of Rs 208.9 crore in Q1FY24 comapred to Rs 195.3 crore in Q1FY23, up 7.0% YoY
- PAT of Rs 144.9 crore in Q1FY24 compared to Rs 152.3 crore in Q1FY23, down 5.0% YoY
- EPS of Rs 6.41 in Q1FY24 compared to Rs 6.77 in Q1FY23
Gnanesh (Sunil) Gala, Managing Director, said, “The first quarter has consistently been a robust period for our standalone Publication business, primarily due to the reopening of SSC board schools in June. This segment comprises workbooks, guides, and question banks tailored for students attending SSC board schools in Maharashtra and Gujarat, where we currently dominate with over 2/3rd the market share.
Our Publications business revenue grew by 20% year on year to Rs 427 crore. EBITDA showed a growth year-on-year, driven by the implementation of strategic price increases and an increase in sales volumes compared to the same period last year.
Domestic Stationery business revenue for Q1FY24 grew by 22% year on year to Rs 143 crore. Due to the inherent nature of the business, there is always a two-quarter lag in the procurement of raw materials and sales realization. Hence the margins were affected due to the escalation in raw material prices which was procured in the previous quarters. However, to gain the market share we made a strategic decision to absorb some of the cost increase and not immediately pass it on to consumers. Fortunately, in the current quarter, raw material prices have started to decline, and coupled with an improved demand scenario, we are confident that the company will be able to achieve revenue growth of 15% in FY24 compared to FY23, with an enhanced margin profile.
Exports Stationery business revenue for Q1FY24 grew by 3% year on year to Rs 214 crore. One of our product categories is currently being evaluated for potential anti-dumping duty in the USA. As a result, orders from this category were not received during Q1. This category generally constitutes ~8% - 10% of our export revenue in a year. Going forward, the company has taken appropriate measures to accommodate the orders from customers in this category, ensuring a proactive approach to address the situation effectively. However, the growth in our other existing products managed to offset this setback.
As an Indian player in the export market, our brand equity is exceptionally strong, primarily attributed to our commitment to providing quality products and services. To further expand in the export market, we have devised a strategic plan to introduce new offerings beyond paper-based products and focus on value-added products.
Our Ed-tech business which is under Navneet Futuretech Limited - the Board of Directors has guided for review of our Ed-tech portfolio and strategy considering the current Edtech scenario. We will present a comprehensive strategy to the Board very soon.”