Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Navneet Education Ltd (BOM:508989, Financial) reported strong growth in its export stationery business, with a 17% year-on-year increase in revenue.
- The publication business maintained a stable growth trajectory, supported by consistent demand and strategic partnerships.
- The company is focusing on expanding its reach and strengthening its content portfolio, leveraging digital platforms to enhance distribution and accessibility.
- Navneet Education Ltd (BOM:508989) has launched NOIT AI, a platform aimed at benefiting the teacher community, which is expected to enhance demand for both physical books and digital content.
- The company is actively exploring new growth avenues through geographical expansion and market penetration, indicating a strategic focus on long-term growth.
Negative Points
- The domestic stationery business faced challenges, with a 24% year-on-year decline in revenue due to a competitive landscape and declining raw material prices.
- There was a significant decline in domestic stationery volumes, with a 15% drop over three months and a 3% decline over nine months.
- The company reported a 27 crore negative impact on its financials, indicating challenges in maintaining profitability.
- Navneet Education Ltd (BOM:508989) has not yet received any major outstanding institutional orders in its publication business, which could impact future revenue.
- The company faces competition from other countries in its export business, including China, Indonesia, and Vietnam, which could affect its market share and pricing strategy.
Q & A Highlights
Q: What was the value of the institutional order that boosted growth in the publication business, and can you clarify the nature of the relationship?
A: The total value of the institutional order was INR 15 crore. These orders came from various corporates and government departments that provide supplementary products to schools. This business is expected to remain sustainable as schools see the benefits of these products. - Respondent: Unidentified_1
Q: What is the current outstanding order book for the publication business?
A: Currently, there are no outstanding orders. The business is seasonal, and orders are expected to start coming in from the first to the second quarter. - Respondent: Unidentified_1
Q: Can you explain the 24% decline in the domestic stationary business? Is it due to repricing or loss of market share?
A: The decline is primarily due to a 10% reduction in pricing, as distributors and retailers delayed stocking due to falling prices. However, with prices stabilizing, we expect a strong fourth quarter for the domestic stationary business. - Respondent: Unidentified_1
Q: What is the guidance for the publication and stationary business margins for FY25 and FY26?
A: For the publication business, margins are expected to be around 27-28% for FY25 and improve to 30% in FY26. For the stationary business, margins are expected to be between 10-11% for FY25, with an improvement to 13-14% in FY26 as domestic revenue grows. - Respondent: Unidentified_1
Q: How is the company planning to capitalize on the government's push for regional language textbooks?
A: The company is prepared to meet the demand for regional language textbooks as per government requirements. We have the necessary products and can quickly reprint them based on demand from schools. - Respondent: Unidentified_1
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
