BENGALURU: Indian custodians of music company Saregama Limited (Saregama) reported a 9.5 per cent drop in Total Income from Operations (TIO) in Q2-2015 to Rs 41.20 crore from the Rs 45.53 crore in the corresponding year ago quarter (Q2-2014) and a drop of 2.4 per cent from the Rs 42.31 crore reported in the immediate trailing quarter (Q1-2015). PAT for the current quarter (Q2-2015) fell 16.5 per cent to Rs 2.08 crore (5 percent of TIO) from Rs 2.49 crore (5.5 per cent of TIO) in Q2-2014 and fell by 38.1 per cent from the Rs 3.36 crore (7.9 per cent of TIO) in Q1-2015.
Note: 100,00,000 = 100 lakh =10 million = 1 crore.
In the six month period ended 30 September 2014 (HY-2015), Saregama’s TIO increased 2.7 per cent to Rs 83.51 crore from Rs 81.34 crore in HY-2014. PAT for HY-2013 at Rs 5.44 crore increased 25.9 per cent to Rs 5.44 crore (6.5 percent of TIO) from Rs 4.32 crore (5.3 percent of TIO) in HY-2014.
Revenue Streams
The company’s net sales income in Q2-2015 at Rs 15.33 crore (37.2 per cent of TIO) was 6.4 per cent lower than the Rs 16.37 crore (36 per cent of TIO) in Q2-2014, and 1.7 per cent more than the Rs 15.07 crore (35.6 per cent of TIO) in Q1-2015. For HY-2015, net sales income increased 4.1 per cent to Rs 30.40 crore (36.4 per cent of TIO) from Rs 29.19 crore (35.9 per cent of TIO) in HY-2014.
License Fee income in Q2-2015 at Rs 25.80 crore (62.6 per cent of TIO) was 11.3 per cent lower than the Rs 29.08 crore (63.9 per cent of TIO) in Q2-2014 and 4.9 per cent less than the Rs 27.12 crore (64.1 per cent of TIO) in Q1-2015. License Fee income rose 1.7 per cent to Rs 52.92 crore (63.4 per cent of TIO) in HY-2015 from Rs 52.04 crore (64 per cent of TIO) in HY-2014.
Segment Results:
Two segments’ contribute to Saregama’s revenue – Music and Films and Television serials (TV).
Music
Saregama’s Music segment reported 11.9 per cent drop in operating revenue to Rs 25.96 crore (63 per cent of TIO) in Q2-2015 from Rs 29.46 crore (64.7 per cent of TIO) in Q2-2014 and a drop of 6.9 per cent from Rs 27.88 crore (65.9 per cent of TIO) in Q1-2015. For HY-2015, operating revenue fell 1.3 per cent to Rs 53.84 crore from Rs 54.55 crore in HY-2014.
The segment reported 20.9 per cent drop in operating profit to Rs 6.61 crore in the current quarter from Rs 8.36 crore in Q2 2014 and 48.7 per cent drop from the Rs 12.89 crore in Q1-2015. Operating profit from the music segment increased 10.4 per cent to Rs 19.5 crore from Rs 17.67 crore in HY-2014.
Films and Television serials (TV)
Operating revenue from the TV segment fell 5.2 per cent in Q2-2015 to Rs 15.24 crore (37 per cent of TIO) from Rs 16.07 crore (35.3 per cent of TIO) in Q2-2014 and increased 5.6 per cent from the Rs 14.43 crore (34.1 per cent of TIO) in Q1-2015. In HY-2015, operating from the TV segment rose 10.8 per cent to Rs 29.67 crore (35.5 per cent of TIO) from Rs 26.79 crore (32.9 per cent of TIO) in HY-2014.
This segment reported less than one thirteenth (1/13.37 times) the operating profit in Q2-2015 at Rs 0.19 crore as compared to the Rs 2.54 crore in Q2-2014. For Q1-2015, the segment had reported operating loss of Rs 0.82 crore. In HY-2015, TV segment reported operating loss of Rs 0.63 crore against an operating profit of Rs 2.91 crore in HY-2014.
Let us look at the other numbers reported by Saregama for Q2-2014.
Saregama’s Total Expenditure (TE) in Q2-2015 at Rs 40.33 crore (97.9 per cent of TIO) was 7.5 per cent lower than the Rs 43.6 crore (95.8 per cent of TIO) in Q2-2014 and 3 per cent more than the Rs 39.16 crore (92.6 per cent of TIO) in Q1-2015. For HY-2015, TE increased 2.3 per cent to Rs 79.49 crore (95.2 per cent of TIO) in HY-2014.
Saregama paid 44.9 per cent lower Royalty Fees in Q2-2015 at Rs 4.58 crore (11.1 per cent of TIO) as compared to the Rs 8.31 crore (18.3 per cent of TIO) in Q1-2014 and 14.2 per cent lower than the Rs 5.34 crore (12.6 per cent of TIO) in Q1-2015. HY-2015 Royalty Fees paid by the company fell 15.6 per cent to Rs 9.92 crore (11.9 per cent of TIO) from Rs 11.75 crore (14.4 per cent of TIO) in HY-2014.
Saregama’s cost of production of films, television and portal (Production cost) in Q2-2015 at Rs 14.44 crore (35 per cent of TIO) was 4.4 per cent more than the Rs 13.83 crore (30.4 per cent of TIO) in Q2-2014 and 4.9 per cent more than the Rs 13.76 crore (32.5 per cent of TIO) in Q1-2015. HY-2015 production cost at Rs 28.19 crore (33.8 per cent of TIO) was 23.6 per cent more than the Rs 22.80 crore (28 per cent of TIO) in HY-2014.
