Navneet's exports stationery business reaps benefits

Navneet Education Limited (NEL) one of the largest educational syllabus-based supplementary content and stationery providers has released its unaudited financial results for the quarter and nine months ended 31 December 2024.

The revenue from the publication business grew by 28% year-on-year to approximately Rs. 113 crores. This growth was driven by a few institutional orders that significantly contributed to the topline, which according to NEL, "reaffirmed its market leadership and deep-rooted presence in the education sector."

As per a press note shared with PrintWeek the total revenue from the publication business was Rs 611 crores as compared to Rs. 592 crores in 9M FY24; and the total revenue from the stationery business stood at Rs 734 crores registering a growth of 3% as compared to the same period last year.

The domestic stationery business faced challenges and revenue from this segment declined by 24% year-on-year to approximately Rs. 52 crores. This was due to a decline in raw material prices, leading to slower procurement demand from dealers and distributors, which impacted both growth and margins. 

Meanwhile the exports revenue stood at Rs. 505 crores, a growth of 11% as compared to the same period last year. The domestic revenue stood at Rs. 225 crores, a de-growth of 12% as compared to the same period last year.

The exports stationery business continued to perform, registering growth of 17% year-on-year to approximately Rs. 115 crores.

Gnanesh (Sunil) Gala, the managing director at NEL said, "The financial and operational performance for Q3 and 9M FY25, reflects a mix of strong growth driven by our export stationery business, steady growth in publication business and some challenges in the domestic stationery business." Gala added,  "While we navigated a competitive landscape, we continued to make strategic progress in key focus areas, ensuring long-term sustainable growth."

Gala added, "While we experienced short-term pressures on growth and margins in Q3 for the domestic stationery business, stable paper prices in January are expected to drive demand recovery in Q4 FY25." Additionally, the group is actively implementing operational efficiencies and a prudent pricing strategy to stabilise margins and support long-term growth.