BENGALURU: Indian custodians of music company Saregama Limited (Saregama) reported an 8.9 per cent drop in Total Income from Operations (TIO) in Q3-2015 to Rs 39.21 crore from Rs 43.02 crore in the corresponding year ago quarter (Q3-2014) and a drop of 4.8 per cent from the Rs 41.20 crore reported in the immediate trailing quarter (Q2-2015). PAT for the current quarter (Q3-2015) was 25.5 per cent more at Rs 1.28 crore (3.3 per cent of TIO) than Rs 1.02 crore (2.4 per cent of TIO) in Q2-2014 and fell by 38.5 per cent from the Rs 2.08 crore (5 per cent of TIO) in Q3-2014.
Note: 100,00,000 = 100 lakh =10 million = 1 crore.
In the nine month period ended 31 December, 2014 (9M-2015), Saregama’a TIO fell 1.3 per cent to Rs 122.72 crore from Rs 124.36 crore reported for 9M-2014. PAT for 9M-2015 at Rs 6.73 crore (5.5 per cent of TIO) increased 26 per cent from Rs 5.34 crore (4.3 per cent of TIO) in 9M-2014.
Revenue Streams
The company’s net sales income in Q3-2014 at Rs 14.05 crore (35.8 per cent of TIO) was 8.3 per cent less than the Q2-2015 sales income of Rs 15.33 crore (37.2 per cent of TIO) and was 22.9 per cent lower than the Rs 18.22 crore (42.4 per cent of TIO) in Q3-2014. For 9M-2015, net sales income fell 6.2 per cent to Rs 44.45 crore (36.2 per cent of TIO) from Rs 47.41 crore (38.1 per cent of TIO) in 9M-2014.
License Fee income in Q3-2015 at Rs 26.1 crore (66.7 per cent of TIO) was 1.3 per cent more than the Q2-2015 license fee income of Rs 25.80 crore (62.6 per cent of TIO) and was 6 per cent higher than the Rs 24.67 crore (57.3 per cent of TIO) in Q3-2014. License Fee Income rose 1.8 per cent to Rs 78.06 crore (63.6 per cent of TIO) in 9M-2015 from Rs 76.71 crore (61.7 per cent of TIO) in 9M-2014.
Segment Results:
Two segments’ contribute to Saregama’s revenue – Music and Films and Television serials (TV).
Music
Saregama’s Music segment reported 2.5 per cent rise of operating revenue to Rs 26.60 (67.8 per cent of TIO) in Q3-2015 from Rs 25.96 crore (63 per cent of TIO) in Q2-2015 and increased 1.8 per cent from Rs 26.13 crore (60.7 per cent of TIO) in Q3-2014. For 9M-2015, operating revenue fell 1.5 per cent to Rs 79.44 crore (64.7 per cent of TIO) from Rs 80.68 crore (64.9 per cent of TIO) in 9M-2014.
The segment reported 50.1 per cent increase in operating profit to Rs 9.92 crore in the current quarter from Rs 6.61 crore in the preceding quarter and was 15.8 per cent more than the Rs 8.57 crore in Q3-2014. Operating profit from the music segment increased 9.5 per cent to Rs 28.72 crore from Rs 25.24 crore in 9M-2014.
Films and Television serials (TV)
Operating revenue from the TV segment fell 11.4 per cent in Q3-2015 to Rs 13.15 crore from Rs 15.24 crore (37 per cent of TIO) in Q2-2015 and fell 20 per cent from Rs 16.89 crore (39.3 per cent of TIO) in Q3-2014. In 9M-2015, operating revenue from the TV segment fell 0.9 per cent to Rs 43.28 crore (35.3 per cent of TIO) from Rs 43.68 crore (35.1 per cent of TIO) in 9M-2014.
This segment reported a loss of Rs 0.23 crore in Q3-2015 as compared to the operating profit in Q2-2015 of Rs 0.19 crore and an operating profit of Rs 0.69 crore in Q3-2014. In 9M-2015, TV segment reported operating loss of Rs 0.86 crore against an operating profit of Rs 3.60 crore in 9M-2014.
Let us look at the other numbers reported by Saregama for Q2-2015.
Saregama’s Total Expenditure (TE) in Q3-2015 at Rs 37.57 crore (95.8 per cent of TIO) was 6.8 per cent less than the Rs 40.33 crore (97.9 per cent of TIO) in Q2-2015 and was 9.9 per cent lower than the Rs 41.7 crore (96.9 per cent of TIO) in Q3-2014. For 9M-2015, TE fell 1.9 per cent to Rs 117.06 crore (95.4 per cent of TIO) from Rs 119.37 crore in 9M-2014.
Saregama paid 32.3 per cent lower Royalty Fees at Rs 3.10 crore (7.9 per cent of TIO) in Q3-2015 as compared to the Rs 4.58 crore (11.1 per cent of TIO) in Q2-2015, but was 11.2 per cent less as compared to the Rs 3.49 crore (8.1 per cent of TIO) in Q3-2014. 9M-2015 Royalty Fees paid by the company fell 14.6 per cent to Rs 13.2 crore (10.6 per cent of TIO) from Rs 15.24 crore (12.3 per cent of TIO) in 9M-2014.
Saregama’s cost of production of films, television and portal (Production cost) in Q3-2015 at Rs 13.60 crore (34.7 per cent of TIO) was 5.8 per cent lower than the Rs 14.44 crore (35 per cent of TIO) in Q2-2015 and was 4.4 per cent less than the Rs 14.23 crore (33.1 per cent of TIO) in Q3-2014. 9M-2015 production cost at Rs 41.79 crore (34.1 per cent of TIO) was 12.9 per cent more than the Rs 37.03 crore (29.8 per cent of TIO) in 9M-2014.
