I am immensely delighted to present to you the Annual Report of Navneet Education forthe financial year 2019-20.
As we embark on anotheryearfilledwith opportunity and lessons the world has undergonemajor changes in the last few months. The outbreak of COVID-19 has set forth a health andeconomic crisis all over the world which has only amplified in magnitude. As a resultthe governments across the globe have initiated lockdowns and closed national borders.Consequently the global economy is in a very tough situation as numerous operations havecome to a halt and millions of workers have been laid off worldwide.
The ripples of the outbreak have impacted the students and their parents as allschools have been shut down to prevent the spreading of the virus. Even in these uncertaintimes civil workers are doing their best in ensuring safety and countering the effects ofthe pandemic. Educational institutions have also followed suit as they have begun hostingonline classes to ensure quality education. In FY 2019-20 the global trade andinvestments were the major challenges surrounding the world economy.
The relations between the two largest economies of the world becoming sensitive theprice war among major oil producing nations and other geopolitical concerns were the othercontributing factors to the tough economic scenario. The impacts of these globaldevelopments were felt in the Indian markets too. During the year the
Indian government took steps to ensure safe tides for the economy. These include policyannouncements consisting of PSU banks consolidation incentives to several industriescorporate tax rate cuts and RBI's move to boost liquidity of banks and NBFCs. In the longrun these measures will boost the economy once the world restores to normalcy after thepandemic. One of the important highlights of the year was the Honorable Finance Ministersuggesting a new education policy in the Union Budget 2020. This policy in addition toseveral measures will revamp the education system and generate employment in the countryand abroad for Indians. The budget was allocated at 99300 crores for the education sectorand 3000 crores for skill development. At Navneet Education FY20 was a year whichunderlined our resilience and stability. Your Company made significant progress in manyareas of its business in addition to laying the foundation for the ofscopeand comingyears which will be full of opportunities and strategies to conquer new markets. Emphasiswill be given on enhancing the user experience and improving the quality of books. Duringthe year we improved our product portfolios expanded our geographical presence andserved our customers with zeal. The financial performance of your Company in FY20 has beenremarkable especially considering the challenging economic situation. At the end of theyear the Company earned a total revenue of 146719 Lakhs PAT after OCI of 21935 Lakhsand achieved growth at a rate of 6 percent.
Following are the segments highlights:
Publication Revenues decreased by 2% to 69875 Lakhs
Stationery Revenues increased by 14% to 74124 Lakhs
In FY20 our publication business was quite subdued due to limited changes in thesyllabus in the state of Maharashtra. However this market segment is primed for growth onthe back of rapid progress in CBSE schools. The stationery segment of your Companycontinued on its steady pace due to impressive performance from exports. The increase inexports was due to new clients joining our vision effective marketing techniques and abroad product portfolio. US continues to be a crucial market for Navneet as itcontributed more than 60% to the Company's export revenue.
As a new age organization NEL emphasises enriching and effective digital learningexperience. Indiannica
Learning Pvt. Ltd. and eSense Learning Pvt. Ltd. have helped in broadening our contentbusiness segment. In FY20 the revenue from operations was 5497 Lakhs and 2058 Lakhsrespectively from Indiannica and eSense. The acquisition of Indiannica has openedpromising avenues for NEL as we foray into the ICSE and CBSE board content and producingnew workbooks for them. Hence our current library is now modern and expanded which willtrigger more sales going forward. Online education has emerged as a growing businessvertical as more students have showed interest in a new learning format which promisesbetter understanding seamless accessibility and low operational changes. This hasprompted many schools to migrate towardsonline classes in the midst of thelockdown to ensure the continued learning of the students. As a result e-learning isonly going to grow bigger in the near future.
Exploring new potentials capitalizing on opportunities adapting to emerging trendsimproving strengths and delivering excellence will remain as key objectives for the comingyears. NEL is long-term debt free and is placed in a strong position to achieve itsfinancial goals. As an organization which believes in harnessing renewable energy andlowering dependency on replenishable options NEL installed a 96.69 KW roof top solarsystem at registered office at Navneet Bhavan Mumbai.This move will also help in reducingfixed overheads and optimizing costs.
We continue to value our relationships with our customers and employees. We at NELalso prioritise the safety and health of our workforce and are eager to uplift thecommunity whenever we can. It is our attitude to create bigger milestones by adapting tothe times and fostering innovation while staying true to our core values which define us.The coming FY21 realising willbesignificant our vision as we continue to achieve ourgoals and add value for our stakeholders.
|Thank You |
|Kamlesh S. Vikamsey |