Saregama India spurts after good Q2 results

Saregama India hit an upper circuit limit of 5% to Rs 4216.80 after the company's consolidated net profit rose 16.87% to Rs 33.80 crore on 34.21% increase in net sales to Rs 145.09 crore in Q2 September 2021 over Q2 September 2020.

The company's operating income before content charge, interest and depreciation (OIBCID) jumped 38% to Rs 53.50 crore in Q2 FY22 from Rs 38.70 crore in corresponding quarter last year.

During the period under review, the company's revenues from music business jumped 21% to Rs 121.58 crore. Its revenues from TV & films division surged 238% to Rs 22.35 crore. The firm's revenues from publication division rose 9% to Rs 1.16 crore.

Profit before tax rose 18.54% to Rs 45.33 crore in Q2 September 2021 over Q2 September 2020.

During this quarter, Saregama launched multiple new songs across languages, including the hit music of Akshay Kumar starrer Bell Bottom and multiple non-films "Original" songs across Hindi, Bhojpuri, Gujarati, Punjabi, and Tamil languages. The company also marked its entry in the Haryanvi segment with its first song launch.

"The other highlight of the quarter was the use of the iconic song 'Dum Maaro Dum' by Apple in its latest iPhone launch advertisement," the company said in a statement.

Carvaan sales improved during the quarter in sync with the easing of lockdowns in multiple states. The company sold 103,000 units during the quarter compared to 45,000 units in Q1.

Saregama as 5 channels on YouTube with a cumulative subscriber base of over 44 million. The monthly views on Saregama's YouTube channels have grown from 0.5 million to 940+ million in a span of 68 months.

YouTube generate advertising revenues on these views which are shared with Saregama. This also applies to advertising running on 3rd party content that is using any of Saregama's IP (song, lyrics, music composition, dialogues) within the video. Saregama has issued 1-2 years fixed-fee licenses to other platforms, allowing their users to upload videos containing Saregama songs.

Further, the company added that its TV series 'Chandralekha' is the first Tamil serial to cross 2000 episodes. The other serial 'Roja' continued its leadership position.

Saregama India is a RPSG group company owning the largest music archives in India and one of the biggest in the world. It has also expanded into other branches of entertainment -publishing, film production and digital content.

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