- 20 Jan 2022
- ICICIdirect Research
SAREGAMA INDIA REPORTS HEALTHY Q3 PERFORMANCE
SAREGAMA - 516 Change: 0.50 (0.10 %)News: Saregama India's revenues for Q3FY22 increased ~12% YoY to Rs.150.3 crore, on a benign base with growth being led by music segment up 16.8% YoY. Carvaan sales volumes were up ~2% YoY to 1.41 lakh units. TV & films segment was down ~16% YoY at | 15.6 crore as base had new movie and Tv serial release. EBITDA grew 35.9% YoY to Rs.54.4 crore with EBITDA margin at 36.2% (up 630 bps YoY) owing to lower selling and distribution expense and operating leverage.
Views: The monetisation push led by digital consumption via streaming and social media platforms has driven the core growth, albeit margins decline needs to be monitored. The company’s fund raise of Rs.750 crore will driver higher growth. At the CMP, the stock is trading at ~54x FY23 P/E. We await management commentary on growth and margins ahead.
Impact:Positive