Bengaluru: Education companies, especially prominent book publishers, are likely to report modest revenue growth in the second quarter of ongoing financial year (Q2FY25).
According to brokerage firms, companies like Navneet and S Chand are expected to report to witness tepid growth as second quarter (July-September) period is considered as the weakest quarter in terms of demand.
“In a non-seasonal quarter, education companies under our coverage universe are expected to report a modest top-line growth of 7 per cent YoY (year-on-year),” brokerage firm, Prabhudas Lilladher wrote in a note.
“For S Chand, it is the weakest quarter of the season and top-line is expected to remain flat, while Navneet’s core publishing business would continue to face growth challenges,” the report said.
According to the report, after the announcement of the National Curriculum Framework, adoption of new books has been lower than expected.
“While the adoption rate is lower than expectation, we believe it will rise going ahead as NCERT publishes new books for higher grades,” the report said.
However, the stationery business of these educational companies is likely to perform better than the publishing business.
“Stationery business of Navneet is expected to grow by 10 per cent YoY to Rs 210 crore with an EBIT margin of 10 per cent,” the report said.
For S Chand, publishing business is expected to perform better with the rolling out of National Education Policy (NEP).