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News: Saregama reported mixed bag numbers. Revenues were down 1.8% YoY, at Rs 163 crore. Music segment was up ~17% YoY at Rs 146 crore. Carvaan sales volumes which were up ~52% YoY to 1.49 lakh units, while licencing revenues would have witnessed mid teen revenue growth, as per our understanding. The TV & Films segment (including events) revenues were down 63% YoY at Rs 14.3 crore, as base quarter had some catch-up revenues. EBITDA declined 3.3% YoY to Rs 50 crore with EBITDA margin at 30.6%, down 54 bps YoY. Consequent PAT was at Rs 43.5 crore (up 3.8% YoY), aided by higher other income.
Views: Revenue momentum has seen some moderation. We expect digital monetisation to provide sustained growth momentum along with new releases which should boost upcoming quarters. Accelerated opportunity fructification in new areas like Web Series, Artist management, etc., can also provide further positive surprise ahead. Only concern is utilisation of QIP proceed for inorganic /catalogue expansion largely remain elusive and resultant cash is depressing the return ratios.
Impact: Neutral