- 02 Nov 2023
- ICICI Securities
MUTED OVERALL PERFORMANCE
News: Saregama reported mixed bag numbers. Revenues were down 7% YoY, at ₹ 172 crore. Music segment was up ~4% YoY at ₹ 157 crore. Carvaan sales volumes were up ~21% YoY to 1.89 lakh units with realisations being down due to mix, while licencing revenues would have witnessed double digit revenue growth, as per our understanding. The TV & Films segment revenues were down 1% YoY at ₹ 15.1 crore. EBITDA was flattish YoY to ₹ 53.5 crore with EBITDA margin at 30%, up 130 bps YoY due to lower events business revenues and losses. Consequent PAT was at ₹ 48 crore (was up 3% 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.
Impact: Neutral