S Chand and Company Ltd — Q3 FY26

S Chand and Company Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=joF2TK91UHQ Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the SG and Company Q3 FI26 investor conference call. As a reminder, 0:09 9 seconds all participant lines will be in the little only mode and there will be an opportunity for you to ask questions after the presentation continues. Should 0:17 17 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your touch. 0:25 25 seconds Anna hand the confess over to the management of the SJN group for their opening remarks. Thank you and over to you sir. 0:33 33 seconds Uh thank you. [clears throat] Good afternoon ladies and gentlemen. I'm Himmanshi Gupta the managing director at Achan Company Limited. I would like to 0:41 41 seconds welcome you all to our third quarter 9 months results conference call for FI26 and thank you all for taking the time 0:48 48 seconds out and joining us here today. I'm happy to share that we have completed our first international acquisition in January 26 when we acquired CPD 0:56 56 seconds Singapore which gives international curriculum capabilities for the India and Asia market. DPD Singapore is a publisher of supplementary books 1:03 1 minute, 3 seconds adhering to the Singapore IGCSC A level and O levels and IB curriculum for the K12 school segment. This fills a gap in 1:11 1 minute, 11 seconds our product portfolio and makes us future ready for this fast growing segment which has over 1,000 schools in India. Overall, ICS has over 4,000 1:19 1 minute, 19 seconds schools across the world. The largest concentration in Middle East and Southeast Asia with over 10,000 schools. 1:25 1 minute, 25 seconds The number of IB schools world over above 6,000 with a large number of being present in South Asia, Australia, and New Zealand. There's a huge potential 1:34 1 minute, 34 seconds for the C20 Singapore business. Our team is doing a great job in AI data content licensing revenues where we look forward 1:41 1 minute, 41 seconds to achieving a solid 50% year-on-year growth during FI26. 1:46 1 minute, 46 seconds We believe that this revenue stream has a huge potential to grow and deliver for our group in the coming years. Sor will give you more details around this in his 1:53 1 minute, 53 seconds demand. On the NC front, we expect 2627 to see maximum adoption of the new syllable books which should help our growth trajectory in the CBSC and ICT 2:01 2 minutes, 1 second market. As shared with you earlier as well, the PDF version of the new NCERT books have been released and available for class 4, fifth, seventh and eth and 2:09 2 minutes, 9 seconds and on the NCRT website. We would have to wait and watch for it physical availability in the market. a multiple partnership for content and licensing 2:17 2 minutes, 17 seconds including Allied which is PC books discovery amatakata money prep 2:24 2 minutes, 24 seconds language labs speed labs for J and ND foundation and many more will help us in goodstead for enhancing our sales momentum and diversifying our portfolio 2:33 2 minutes, 33 seconds the digital initiative smart key and test coach continue to move forward with high adoption and enrollments we continue our sustained focus in terms of 2:41 2 minutes, 41 seconds working capital matrix achieving the lowest net working capital and inventory matrix for Q3 in the company's history. 2:47 2 minutes, 47 seconds The third quarter is a marketing intensive quarter where we we go out all to connect with key decision makers and to our end customers. In this regard we 2:56 2 minutes, 56 seconds had events like our channel partners product briefing Singapore study tour principles and leading schools event like mathematics summits Hindi divas 3:04 3 minutes, 4 seconds knowledge quest quiz etc. With that I would now request our group CA Mr. S Bkan to prize us all on us a financial performance. Thank you. 3:15 3 minutes, 15 seconds Thank you sir. Good afternoon everyone and thank you for taking out your time. 3:19 3 minutes, 19 seconds I'm Sara Mitan group CFO of S channel company Limited. Uh we ended CQ with a consolidated revenue of 990 million and 3:27 3 minutes, 27 seconds a pack loss of 2887 million. Revenues of one large segment have been shifted to Q4 due to syllabus revision. Hence the 3:35 3 minutes, 35 seconds revenue gap will get covered in Q4 as the specific series are being launched in Feb. On the M&A front, we completed our acquisition of CPD Singapore which 3:44 3 minutes, 44 seconds should hold us in goodstead for building our international curriculum products of sale in India and South Asia and Middle East in the coming years. Do keep in 3:52 3 minutes, 52 seconds mind that we are actively engaged in M&A opportunities which fill in the gaps in our portfolio. We aim to leverage our good strength in such acquisitions to 4:00 4 minutes deliver superior value to our customers and stakeholders. 4:04 4 minutes, 4 seconds During uh 9 months FI26 on a consolidated level, we saw moderation in our reported gross margins versus uh 9 4:13 4 minutes, 13 seconds months FI25. This was largely driven by pricing in the content licensing uh revenues while the pricing has 4:20 4 minutes, 20 seconds rationalized the volumes have grown exponentially to offset the such pricing. I'm happy to share that we did AI data set content licensing revenues 4:28 4 minutes, 28 seconds of 171 million during 9 months FI26 versus 195 million and 9 months FI25. We 4:35 4 minutes, 35 seconds are absolutely confident of achieving revenues of more than 300 million during FI26 versus 195 million FI25 in the 4:44 4 minutes, 44 seconds segment. Going ahead, we would build uh continue to build on the uh AI data set content licensing opportunities by 4:51 4 minutes, 51 seconds adding more clients and higher data quality higher quality data to train LLMs. 4:58 4 minutes, 58 seconds Our focus in Q3 was inventory management where we delivered strong results. Our Q3 inventory days were at 316 days 5:05 5 minutes, 5 seconds versus 366 days in uh CQF25. That's a reduction of almost 50 days. This is the 5:12 5 minutes, 12 seconds lowest Q3 inventory days in the company's history. Our Q3 networking capital was also 143 days versus 152 5:19 5 minutes, 19 seconds days in the same period last year. Our investing companies also continue to continue to improve and are profitable during this period. We look forward to 5:28 5 minutes, 28 seconds their continuous strength for their business. As we enter the main season of FI26, I would like to reiterate our targets for this financial year. 5:37 5 minutes, 37 seconds Firstly, we are looking to grow operating revenues in excess of 800,000 million for the year. Secondly, we are targeting and build a margin band of 18 5:45 5 minutes, 45 seconds to 20 20% for this year. Finally, we look forward to continuing our focus on working capital matrix and cash flows. 5:52 5 minutes, 52 seconds With this, I would like to open the call for your questions. Thank you. 5:58 5 minutes, 58 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 6:05 6 minutes, 5 seconds star N1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. 6:14 6 minutes, 14 seconds Participants are as participants are requested to use handsteps while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 6:41 6 minutes, 41 seconds The first question is from the line of TS Venote from TVS family office. Please go ahead. 6:48 6 minutes, 48 seconds Hello sir, good afternoon. Am I audible? Yes, you order me. 6:54 6 minutes, 54 seconds Yes. Uh so my first question was uh related to the 15th cr of IT refund that we were issued out of which 5.5 cr was 7:03 7 minutes, 3 seconds interest payment. So is that 5.5 cr of interest payment accounted as part of uh the Q3 FI26? 7:11 7 minutes, 11 seconds Yes. 7:13 7 minutes, 13 seconds And the booking of cash as well is accounted at the books. 7:18 7 minutes, 18 seconds No the cash has not come yet. Cash came in January. the uh because the order came in December end we accounted for the order and we received the money in 7:27 7 minutes, 27 seconds mid January so the cash will come in next quarter. 7:30 7 minutes, 30 seconds Okay sir thank you. So my next question was uh so uh you were talking about uh we we might go in for a buyback in case 7:39 7 minutes, 39 seconds of uh we go in for a acquisition but does which does not cost a lot of cash out from the company. So now that we've 7:46 7 minutes, 46 seconds done the acquisition uh which is not uh uh which is not material uh in terms of cash outgo from a company. So uh is 7:54 7 minutes, 54 seconds there any uh outlook from management on going in for a buyback since uh our valuation seems to be very depressed 8:02 8 minutes, 2 seconds considering the cash flow that we throwing year on year and the outlook for the company. So how how does 8:09 8 minutes, 9 seconds management look at buyback opportunities and also the tax related to buyback has been uh uh has been revised in a more 8:17 8 minutes, 17 seconds favorable way. Uh so uh is that something that management could consider? 8:24 8 minutes, 24 seconds Yeah. So we'll look at uh what we uh end up with by the end of this year. We look at the cash flows probably around uh May 8:33 8 minutes, 33 seconds when we have our final uh results. that is the time we can take a call based upon the liquidity and the uh uh 8:41 8 minutes, 41 seconds discussions that will happen internally at the board level but currently uh no discussions as of now that have happened but we are open to the idea uh 8:50 8 minutes, 50 seconds we'll have that discussion around the main meeting sure sir if if I may uh ask one more question uh 8:59 8 minutes, 59 seconds yeah sure sir so my next question was on the NCR's decision to who full-fledgedly to focus 9:06 9 minutes, 6 seconds on in-house printing and uh publication uh by ramping up the capacity. Uh now with this uh and also they came up with 9:13 9 minutes, 13 seconds a circular thing that or a direction to the schools to adhere to NCRT books. So uh how does it impact our sales pipeline 9:21 9 minutes, 21 seconds in case of schools are being directed by NCRT to cover their books? I know this is uh already existing uh that doesn't is not something new but with the with 9:30 9 minutes, 30 seconds the new capacity that they have put up is that something uh that we need to worry about and how uh company position 9:36 9 minutes, 36 seconds to uh uh overcome uh that headwind can you take that 9:49 9 minutes, 49 seconds can you hear me? Yeah. Can you hear me? 9:53 9 minutes, 53 seconds Yeah. So bas basically NCRTA is they are doing this from a long time from 25 30 9:59 9 minutes, 59 seconds 40 years and uh they are obviously creating books they can print more quantities but normally books we have 10:06 10 minutes, 6 seconds seen for NCRT books are normally used for government schools and some private schools also use their books but uh as 10:13 10 minutes, 13 seconds per uh the circular also it is recommended to use the books it's not that you have to compulsory use the books so private schools always have a 10:22 10 minutes, 22 seconds choice to which books that they want to use and TR books are good in quality of content but they're not very comprehensive the private books have lot 10:29 10 minutes, 29 seconds of comprehensive and a lot of other questions and a lot of practice there's a lot of other material which is uh in the private books so schools prefer to 10:37 10 minutes, 37 seconds use private books and uh this issue has been coming up again and again but uh we have been giving good quality content 10:45 10 minutes, 45 seconds and good service to the schools so that's why our books are more recommended in the schools and we are not seeing any dip in the business as of 10:52 10 minutes, 52 seconds now as of we sitting on almost middle of February and uh we are seeing good response from the market and hopefully that will continue to do do so. 11:02 11 minutes, 2 seconds Sure. Thanks a lot. Thank you. Those were the questions. Thank you. 11:09 11 minutes, 9 seconds Thank you. Before we take the next question, a reminder to all the participants that you may press star and one to ask a question. 11:20 11 minutes, 20 seconds The next question is from the line of Nitin Dharmawat from Aram Capital. Please go ahead. 11:31 11 minutes, 31 seconds Uh Nathan, your line is unmuted. Please proceed with your question. Yeah. Yeah. Uh am I audible now? Yes, you are. 11:38 11 minutes, 38 seconds Oh, thank you. 11:40 11 minutes, 40 seconds Yeah. Yeah. Thank you for the opportunity. Yeah. So just uh wanted to you know uh clarify uh since we have 11:48 11 minutes, 48 seconds written the the guidance and the guidance is 800 KS plus in top line and 18 to 20% AITA margin 11:57 11 minutes, 57 seconds and to achieve that we'll have to get you know 550 uh KS plus in revenue in the last quarter with an AITA margin of 12:04 12 minutes, 4 seconds around 250 260 crores. So uh since we are already in the uh just the middle of 12:11 12 minutes, 11 seconds uh the last quarter now and uh wanted to you know understand uh the confidence level of the management to to get there 12:20 12 minutes, 20 seconds because this is a upfront task of achieving that number that must be the highest uh quarterly revenue for us. So can you please throw some light on that? 12:30 12 minutes, 30 seconds Uh nitin hi this is manua so we are [clears throat] quite confident and we should be able to achieve our numbers as per our uh data and as per our meeting 12:39 12 minutes, 39 seconds with the business heads and the sales people. So we are quite confident that we should be able to achieve the number. 12:46 12 minutes, 46 seconds Uh I'm very glad to hear that sir. Uh my second question is uh uh since I missed the initial part of the commentary in case it has already been answered it 12:55 12 minutes, 55 seconds will be a repetitive one. uh which all the you know classes have gone uh for NCF now uh the new curriculum which are coming from from the next academic year. 13:06 13 minutes, 6 seconds So fourth, fifth, 7th, 8th and 9th also has now gone in 10th also has gone in now. So mostly all the classes I would say have gone in for the new curriculum. 13:16 13 minutes, 16 seconds So we would be able to we would be able to uh you know uh I would say generate better business because earlier when we 13:25 13 minutes, 25 seconds were anticipating that the government will uh issue the new books that they actually took lot of time in issuing the new syllabus. So that's 13:33 13 minutes, 33 seconds why uh the the the new syllabus could not be adopted by the schools properly. 13:38 13 minutes, 38 seconds But in the next uh academic year and the year after that we should hope that in two years the full implementation of the new syllabus would be adopted by the 13:46 13 minutes, 46 seconds schools. Now so uh considering this because in last quarter when we you know last when we 13:53 13 minutes, 53 seconds spoke in the quarterly call uh uh I my understanding was that not all the classes are coming for uh you know NCF 14:00 14 minutes with new curriculum. So yeah uh considering the change that have happened. So is there any change in the in the in the guidance as well will will 14:08 14 minutes, 8 seconds there be a vision in the in the guidance? 14:12 14 minutes, 12 seconds I think guidance will remain the same and but we will obviously try to do whatever best we can but the guidance will still remain the same and we are 14:20 14 minutes, 20 seconds not changing the guidance as uh best means uh so let me let me be you know putting it slightly differently. So 14:28 14 minutes, 28 seconds will there be an upward possibility of going beyond 800 cr revenue or will it remain the same? 14:37 14 minutes, 37 seconds It's a difficult to say because it's a very seasonal business and most of the business happens in the last quarter. 14:44 14 minutes, 44 seconds It's very difficult to say as of now but we hoping that we will try to do our best whatever best is possible that we 14:51 14 minutes, 51 seconds will definitely try. But 800 cr is something we are pretty sure that will will be there, right? 14:58 14 minutes, 58 seconds You're quite confident. You're quite confident. Okay. 15:01 15 minutes, 1 second Quite and the next part is about the the consolidated debt level. Uh so what will 15:09 15 minutes, 9 seconds the consolidated debt level will be debtree completely in in the entire financial year or will there be working capital or any long-term uh debt also 15:18 15 minutes, 18 seconds during the financial year? So that gives us some room for buyback or you know increasing the dividends. The previous participant also you know asked that 15:26 15 minutes, 26 seconds question. So just to go over there on the same question can you answer that? Yeah. So I think uh 15:35 15 minutes, 35 seconds see are uh so we have largely debtree three quarters we have debt net tech at the end of Q3. 15:44 15 minutes, 44 seconds uh we've done some capex this year of course uh and we done uh we done an acquisition also but uh I think by the 15:51 15 minutes, 51 seconds end of this year last year we were sitting on uh approximately 16:03 16 minutes, 3 seconds 100 103 I think at the end of March we'll probably be around 120 by the end 16:10 16 minutes, 10 seconds of uh uh by the end of 103 crores last year 103 so it should be around 120 125 by 16:19 16 minutes, 19 seconds the end of March and 150 plus by the end of June so I think we have headroom 16:26 16 minutes, 26 seconds there uh in case some other acquisition does not come up nothing as of now that we are discussing but uh that's what uh 16:35 16 minutes, 35 seconds is trending at the moment so there is u headroom for consetting that buyback 16:42 16 minutes, 42 seconds Oh, glad to hear that as well. So, wishing you all the best, sir. Uh, thank you so much for answering my questions. 16:50 16 minutes, 50 seconds Oh, thanks. Thank you. 16:55 16 minutes, 55 seconds Thank you. A reminder to all the participants, if you wish to ask a question, please press star and one. 17:05 17 minutes, 5 seconds The next question is from the line of Giri Daga from Visaria Family Trust. Please go ahead. Yeah. Hello. I'm audible. 17:14 17 minutes, 14 seconds Yes, you are. Yes, you are. 17:16 17 minutes, 16 seconds Yeah. So, just taking the lethan question forward. So, so the idea for that key probably when we were commenting earlier, we were thinking 17:23 17 minutes, 23 seconds that the years when we'll have a syllabus change, we'll have about 15 20% growth. But when you look at last two year, it's about 8 and a half% and this 17:30 17 minutes, 30 seconds year we getting about 11%. And half of the syllabus change has already come in now because after 27 years, you'll be selling this year books. So is this the 17:39 17 minutes, 39 seconds like 10% is the thinking probably next year probably you may have another 10%. 17:44 17 minutes, 44 seconds Is the thought process right or we'll have some some kicker coming in terms of growth when the syllabus change full will kick in. 17:53 17 minutes, 53 seconds Uh hi uh so basically see basically the syllabus changes as we expected got delayed somehow by the 18:01 18 minutes, 1 second government and we expected the syllabus change to happen in over a 2 three years period but that is taking four five years. So that syllabus change impact is 18:09 18 minutes, 9 seconds happening in the schools but the full impact will happen in the as as I said earlier in the call that next academic year and the year academic year after that. So next two years we will should 18:18 18 minutes, 18 seconds see a complete syllabus change in all the schools in the country hopefully and that should definitely give the boost to the business. how much boost it will 18:26 18 minutes, 26 seconds give and how much impact it will have positive impact on the business that we still have to decide maybe after the 18:33 18 minutes, 33 seconds season is over then we will able to get the clear picture. So as of now it's very difficult to say how much growth we will do next couple of years but 18:41 18 minutes, 41 seconds definitely it will have a bigger boost to the business. 18:48 18 minutes, 48 seconds Okay. Okay. So there is still some kick if I can just add here I think we had discussed about this in one of the earlier calls as well. See the thing is 18:55 18 minutes, 55 seconds that earlier when we used to say that you will get 15 to 20% or high teams kind of growth over a 2 three year period that 3 year or 2 to three year 19:04 19 minutes, 4 seconds period has become like a 5 year 6 year period. So if you just think about it whatever growth you were assuming over a concentrated 3ear period is now coming 19:12 19 minutes, 12 seconds over a 5 to 6 year period. That's the reason why that number is different. 19:18 19 minutes, 18 seconds No, but that's some follow up that that that gives us confidence that let's say 28 and 29 can be also 10% at least growth. 19:26 19 minutes, 26 seconds So see we will give the guidance for next year when we come out with our annual numbers. I don't think this will be the right time to give a guidance for next year. 19:35 19 minutes, 35 seconds Okay. Sure. Thank you. Thank you. 19:44 19 minutes, 44 seconds A reminder to all the participants, if you wish to ask a question, please press star N1. 19:51 19 minutes, 51 seconds The next question is from the line of Amit AA from HG Havine company. Please go ahead. 19:59 19 minutes, 59 seconds Yeah, thank you for the opportunity. So the margin guidance of 18 to 20% is given. What are the structural lever or 20:06 20 minutes, 6 seconds drive the expansion like printing efficiencies or SK rationalizations or digital mix? 20:14 20 minutes, 14 seconds Yeah, I think it's a uh it's a mix of product mix that we having plus the uh higher content licensing revenues that 20:22 20 minutes, 22 seconds we have plus uh and of course with the new new curriculum books of course the uh realizations are a bit better so that 20:29 20 minutes, 29 seconds it's a mix of all of that who are the counterparties for AI data set licensing 20:38 20 minutes, 38 seconds counterparties in terms of AI for AI data set licensing There are confidentiality clauses around that. Uh but they are the leading players in the world. That's all we can say. 20:50 20 minutes, 50 seconds Okay. And sir, can this licensing become 10 to 15% of our revenue over the coming say 3 to 5 years? 20:57 20 minutes, 57 seconds It has the potential. It has the potential but again uh we are working on certain uh uh projects which uh will give us more better quality data sets. 21:10 21 minutes, 10 seconds us apart from text we're looking at videos we're looking at uh illustrations so yes there are uh multiple things that 21:19 21 minutes, 19 seconds we are doing uh and fortunately for us uh this year has been better than last year and then uh hopefully next year 21:27 21 minutes, 27 seconds should be better soon and so the initial presentation mentions the total employee count to be 1900 plus like is it including the acquisition of 21:35 21 minutes, 35 seconds India that's a very small head count uh that's a eight people at counter. 21:42 21 minutes, 42 seconds Okay. Okay. Fine. And and so would it be possible for you to share like out of the 1900 people like how many are in editorial, how many are in sales, how many are in printing? 21:53 21 minutes, 53 seconds It's 50 to 700 in sales about around 200 plus in editorial. 21:57 21 minutes, 57 seconds Yeah. And that's the number which we normally share in our annual report. So but this is the number that we have written in last year's annual 600 would be in printing and warehousing operations. 22:07 22 minutes, 7 seconds There should be back end services. 22:10 22 minutes, 10 seconds And the last question from my side, sir, any plan for edtech platform. Okay. Any platform? 22:18 22 minutes, 18 seconds What do you mean by any plans for enter platform? Do you mean a minority investment? Do you mean something we starting on our own or something? 22:25 22 minutes, 25 seconds Starting with your own which is starting something on your own. 22:29 22 minutes, 29 seconds We've taken a couple of small initiative. We have test coach. We have launched last year. We getting better traction than last year. But again uh 22:38 22 minutes, 38 seconds it's not very material this year. We're doing something different as we compared to last year. We would open a few uh influencers for that. So we hoping to uh 22:48 22 minutes, 48 seconds uh get good number of admission. But again see whatever we want to build in tech also we want to build for longer term. We don't want short-term uh plays 22:57 22 minutes, 57 seconds in that. It should solve a problem not you know uh no gimmick as such. So we're taking it slow u and of course not too 23:04 23 minutes, 4 seconds much of investment going into it. We've done our investments in tech we've launched apps earlier things haven't 23:11 23 minutes, 11 seconds worked out. So uh we'll only do it where there is a actual need for the platform 23:17 23 minutes, 17 seconds plus uh and uh it generates uh revenue and traction for a longer period of 23:24 23 minutes, 24 seconds time. Whatever we do we do for a longer period. Yeah. 23:29 23 minutes, 29 seconds I appreciate you answering my questions in detail, sir. Thank you and all the best. Thank you. 23:37 23 minutes, 37 seconds Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star N1. 23:46 23 minutes, 46 seconds The next question is from the line of TS Vinod from TVS family office. Please go ahead. 23:53 23 minutes, 53 seconds Uh hi sir. So the NC is currently giving us a step change over the next several quarters. So postpart maybe like as you 24:01 24 minutes, 1 second said the next two years is going to be a step change. Uh postart how how should we look at the growth trajectory for the company? Should it uh 24:09 24 minutes, 9 seconds should we be able to maintain similar run rate? Uh is that something that you foresee or how should we look at it? 24:20 24 minutes, 20 seconds Sorry. 24:21 24 minutes, 21 seconds Yeah. So we Yeah. So we should look at normal normalized growth after that and normalized growth sorry 24:29 24 minutes, 29 seconds what will that be sir so percent paid terms it will be like I would say 8 to 10% will be a normalized growth for the company and if we are 24:38 24 minutes, 38 seconds able to do some acquisitions or do some you know generate revenue in the uh AI segment in 24:46 24 minutes, 46 seconds the other segments then it's a different story I'm talking about the traditional publishing business would uh remain in at 8 to 10% growth level less additions 24:55 24 minutes, 55 seconds happen then they can add on sure uh my next question was of the the IB acquisition that you made uh so how 25:04 25 minutes, 4 seconds big is the market and what is the competative landscape there for the uh IB the IB market in India sorry you go 25:13 25 minutes, 13 seconds ahead go ahead I think I think meant gave gives a number of schools in his opening remarks uh it's a very large market or you have 25:21 25 minutes, 21 seconds 4,000 schools for uh IDCS and about 6,000 schools for IB all over the world that's 10,000 schools and currently our 25:29 25 minutes, 29 seconds exposure there is nil so that's your competition like competition from your compet 25:36 25 minutes, 36 seconds you have competition from all the global players PS Cambridge itself and all the uh various uh publishers that have been 25:45 25 minutes, 45 seconds licensed so like Oxford and you know and the big players are there but they are not local players. So in terms of domestic 25:53 25 minutes, 53 seconds players, uh we don't see any domestic players coming in the international school market because they don't have the product portfolio to do that. So that's why we also didn't have a product 26:01 26 minutes, 1 second portfolio. That's why we had acquired the Singapore company that we believe that can be taken to the next level. But right now the company is of a very small 26:09 26 minutes, 9 seconds size with a very limited revenue and limited number of people. But we plan to expand it in next two to three years. So 26:16 26 minutes, 16 seconds I believe that the entire school market is growing at a much faster uh pace in India and uh neighboring countries where 26:23 26 minutes, 23 seconds a lot of uh adversary schools even in tier 2 and tier three towns are going for international syllabus and CBS is 26:31 26 minutes, 31 seconds also growing no doubt about it but the higher the the growth in these segments of international schools is much higher so we wanted to fill that gap and that's 26:39 26 minutes, 39 seconds why we are here but the reality we'll come to we'll come to know more about it in next 6 to 8 months of what is happening because right now it is not 26:47 26 minutes, 47 seconds even a month that we have acquired that company. So we also gaining knowledge and experience you know and trying to understand the operations and 26:55 26 minutes, 55 seconds everything. So it's very fairly fair fairly new in this segment. 26:59 26 minutes, 59 seconds Sure. So thank you. Uh my next question was on the test coach monetizations. You you did touch upon that. Uh so uh is there uh something that we can do to 27:08 27 minutes, 8 seconds monetize the test coach? I understand that the earlier earlier conference calls you spoke about the YouTube uh channel that you have and the content 27:15 27 minutes, 15 seconds that you have over there the content is very rich. Uh so how can we do look at monetiz monetization? Is there uh some kind of uh outlook that management has 27:23 27 minutes, 23 seconds on that uh academy is more of a marketing channel. It's not really a monetization 27:30 27 minutes, 30 seconds where you can do and we currently not looking at monetizing that it's more of marketing test coach. Yes, we launched C 27:38 27 minutes, 38 seconds at the moment and last year and then we getting good traction this year also. So once uh this is we this is just done for 27:45 27 minutes, 45 seconds CU at the moment. Once we are able to uh successfully do CU then we look at other exams. So this is something that we are 27:52 27 minutes, 52 seconds trying to build but there it will take time building. Uh it should not happen in one year or two years. we have a uh good four five years to build it up and 28:01 28 minutes, 1 second this can because this is a B2C so this can scale uh once people have confidence in the kind of uh content and uh results 28:10 28 minutes, 10 seconds that we start giving uh for the students appearing for the examination we'll be able to do it there are about 15 lakh students sitting for CU that's a large 28:18 28 minutes, 18 seconds market currently there is no clear uh leader in that segment uh while there 28:25 28 minutes, 25 seconds are leaders in your um J and N segment there's no clearly in the CUT segment. 28:30 28 minutes, 30 seconds So considering that we thought this is an area where we could make a difference and we are already a known brand for the schools. So uh that's why we entered 28:39 28 minutes, 39 seconds into that and hopefully uh uh this year and next year we should be able to wrap it up to a decent level and then take it to multiple examinations after that. 28:51 28 minutes, 51 seconds Sure. Thank you sir. My next question was on the sales returns. So typically you indicate that it's you try to 28:57 28 minutes, 57 seconds contain it 15%. Uh so is is that are we trying to tighten it up further for this year? How are we looking at the future? 29:08 29 minutes, 8 seconds Yeah, it's within that range. It's within that range. I mean currently we are not crossing that range ever and then hopefully with uh the syllabus 29:17 29 minutes, 17 seconds change being completed it should uh trend a bit lower after that because u currently with old inventory and new 29:24 29 minutes, 24 seconds inventory there's a bit of a challenge sometimes that comes in the few places but I think it may trend lower from next year by at least the percentages. 29:35 29 minutes, 35 seconds Sure. Thank you sir. That's all I have. Thank you. 29:44 29 minutes, 44 seconds As there are no questions from the participants, I now hand the conference over to the management of the SJ group for their closing comments. 29:53 29 minutes, 53 seconds I think one question sorry uh uh yes sir there is yeah there is one question in the queue. 30:04 30 minutes, 4 seconds Yeah. So the question is from Nitin S. 30:07 30 minutes, 7 seconds Dhmawad from Aram Capital please go ahead. Yeah. Am I audible now? Yes you are. 30:14 30 minutes, 14 seconds Yeah. uh so uh going back to you know growth uh numbers uh for uh you know next uh uh couple of years considering 30:23 30 minutes, 23 seconds the NCF and since uh we do not want to give any guidance right now for the for the subsequent years and it's 30:30 30 minutes, 30 seconds understandably right also it's too early uh but looking at uh the history considering the fact that we are a very 30:37 30 minutes, 37 seconds old organization in this business one of the earliest one and uh there there were instances when this curriculum got 30:44 30 minutes, 44 seconds changed for example in in uh mid 2000 2005 67 period or prior to that 98 or 30:51 30 minutes, 51 seconds prior to that 86 87 period when the curriculum got changed or NP was introduced that time. So what kind of growth has industry growth has come 30:59 30 minutes, 59 seconds after the introduction of curriculum [clears throat] whether it is one time or you know in staggered manner but what was the growth in couple of years two 31:08 31 minutes, 8 seconds three years historically if you can share some experience from that side it would help 31:15 31 minutes, 15 seconds uh yeah it is uh Nan is very old I was also very young in the business at that time almost 20 years old when the 31:23 31 minutes, 23 seconds curriculum ch change happened in front of me so we saw Oh, because at that time the change happened in very quick succession not two long period happened 31:32 31 minutes, 32 seconds in two or three years but this time the succession the change has happened over five six years. So that is a big difference that we are seeing the school are you know lot of schools are 31:41 31 minutes, 41 seconds skeptical that they want to use the old curriculum old books some schools are using the new books so it's a mix mixed bag I would say this time earlier time 31:49 31 minutes, 49 seconds it used to be that all the schools are going they're adopting the new book so there was a much I would say higher growth in terms of percentages this time 31:57 31 minutes, 57 seconds it has been more spread out over a five six year periods so we are not seeing that high growth happening in one year 32:04 32 minutes, 4 seconds or two years but we believe the next couple of years should be giving us recent growth hopefully and uh we should 32:11 32 minutes, 11 seconds be able to maintain that and uh then have a normalized growth after that. 32:18 32 minutes, 18 seconds Got it. Got it. Thank you so much and wishing you best. Thank you. Thank you. Thank you. 32:24 32 minutes, 24 seconds Oh, thank you. There are no more questions from the participant. I would like to h the conference over to the management 32:32 32 minutes, 32 seconds for closing comments. Uh thank you everyone for taking out your time and be safe with your family. Thank you everyone. Thank you. Take care. 32:42 32 minutes, 42 seconds Thank you. Thank you very much. Thank you very much. 32:49 32 minutes, 49 seconds On behalf of Ashand and company that concludes this conference. Thank you all for joining us today and you can now disconnect your