humming bird education ltd Management discussions

A. Industry structure and developments:

Indias Education sector offers a great opportunity for Olympiads with approximately 23.9 percent of Indias population being in between the age group of 4-17 years. The Olympiads are conducted at International level and in many other countries apart from India. Considering the similar age groups in other countries & the rapidly increasing interest in Olympiads among the school going children, the future scope of the business is amazing.

The National Education Policy (NEP 2020) by the Ministry of Education, Government of India has clearly stated that the Olympiads may play a major role in the academic growth of the students. Also, the Olympiads may provide additional weightage to students which may help them in getting admissions into colleges and Universities including NITs and IITs.

Humming Bird is spreading its wings in India and other countries as well so as to steadily capture the market considering the potential and the huge market size. The Education sector in India is biggest and has the roots in every hook and corner however the Olympiads have never got that deep till now due to language differences. Humming Bird broke the language barrier and is now also conducting Olympiads in regional languages for the students of schools with regional languages as their primary language of education.

Humming Bird has also started the Video tutorials for the students in various subjects where in the students will get the exact knowledge of the subjects. The video tutorials will be aimed at strengthening the basic concepts of the students thus enabling them to aim for Excellence in the subject. These video tutorials are provided Free of Cost to help the students strengthen their academic skills.

B. Opportunity and Threats:

Opportunities:

A. Increase in demand of educational support services and assessments.

B. Growing role of private sector in education industry.

C. Recent government efforts to promote the Olympiads and quality in education.

D. The role & enthusiasm of parents in promotion of Olympiads for their ward/s.

Threats:

A. B2B Business depends on relations with the Client. The Efforts of getting directly to customer largely depend on B2B relations.

B. Coaching institutions and companies with video tutorial mobile apps getting into Schools with their Olympiads just for the sake of database collection are saturating the purpose of Olympiads.

C. Segment-wise or product-wise performance:

Humming Bird has worked on each of the Olympiad as a different segment altogether. The Olympiads will soon be divided in different segments and the promotion of each of the segment will happen differently. For eg. Regional language Olympiads to be kept under one segment, Scientific subjects like Mathematics and Science to be kept under another segment etc. This is to assure that each of the segments is placed and marketed appropriately and generate more sales.

D. Outlook:

The Company already has a presence PAN India. The outlook of coming year would be to add regional presence in jthe many parts of India so as to increase the direct interaction with the clients. The company also looks forward to increase the International presence. The company is positive with the future developments and endeavors to do its best to capitalize the opportunities in this sector.

E. Risks and concerns:

The Covid pandemic has raised the concerns of dependency on the Schools for the revenue. The sales of Humming Bird Education Limited are totally dependent on the fact that the schools are functioning properly. The second major concern is lack of cross selling and upselling the services and products to the students leading to less Average Revenue per student. These concerns are known to the management and steps are planned accordingly for the next financial year.

F. Internal Control Systems and their Adequacy:

There are well established procedures for internal controls for operations of the company. The IT infrastructure and the finance & audit functions are well equipped with professionally experienced qualified personnel & play important roles in implementing the statutory obligations. The company has constituted audit committee for guidance and proper control of affairs of the company. To ensure quality of delivery, the company is now focusing on the content of the material & their true relevance for the students.

G. Financial and Operational Performance:

Particulars	2022-23	2021-22
Revenue from operations (Net)	20585849	5066394
Other Income	2654705	882303
Total Income	23240554	5948697
Total Expenditure	20881843	9479995
Operating Profit	3399173	-2519702
Less: Finance Charges	0.00	0.00
Cash Profit	3399173	-2519702
Less: Depreciation	1040462	1011597
Profit before exceptional items, tax and share of (profit)/loss in associates	2358711	-3531299
Exceptional items ^	61674	160382
Tax Expense/( Income)	0.00	0.00
Net profit/(loss) after tax and before share of (profit)/loss in Associates	2297237	-3691681
Net profit/(loss) after tax for the year	2297237	-3691681
Earnings per equity share	3.75	-6.02
Basic & diluted (INR) for continuing operations	3.75	-6.02

For financial and product-wise performance concerning operational performance, please refer to the Financial Results and Operational Performance section of the Boards Report.

H. Material Development in Human Resources:

The efforts for development of human resources have been continued with greater emphasis on training and development programs. The company enjoyed healthy and cordial relations with the employees of the company. A detailed performance evaluation system is in place and remuneration and rewards are strongly liked to performance indicators.

The company has laid down various plans to attract and retain skill manpower at all levels. Your directors place on record their sincere appreciation in respect of the services rendered by the employees of the company at all levels.

I. Details of Significant changes in Key financial Ratios:

Si. No. Particulars	31.03.2023	31.03.2022	Formula Adopted
1. Debtors Turnover Ratio (Days)	1736.90	427.47	365 Days/(Net Revenue/ Average Trade Receivables)
2 Inventory Turnover Ratio (Days)	51.39		365 Days/ Net Revenue / Average Inventories)
3 Interest Coverage Ratio	NA	NA
4 Current Ratio	18:1	13:1	Current Assets/(Total Current Liabilities-Security Deposits payable on demand-Current maturities of Long Term Debt)
5 Debt-equity Ratio	0	0	Total Debt/ Total Equity ]f
6 Operating Profit Margin Ratio	8:1	0	EBITDA/ Revenue from operations
7 Net Profit Margin Ratio	11.16%	-72.87%	Net Profit/Net Revenue

(*) Since Inventory is Zero, this ratio cannot be calculated.

(#) Since inventory is not maintained, ratio cannot be calculated.

(&) Since Interest is not paid, ratio cannot be calculated

Cautionary Statements

The report may contain forward looking statements which may identified by their use of words like plans, expects, will, anticipates, believes, intends, projects, estimates, or other words of similar meaning. All statements that address expectations and projections about the future, including but not limited to statements about the companys strategy for growth, product development, market position, expenditures and financial results, are forward looking statements.

Forward looking statements are based on certain assumptions and expectations of future events. The company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events. Actual results could differ materially from those express or implied.