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Tips Industries Ltd.

BSE: 532375 | NSE: TIPSINDLTD |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE716B01011 | SECTOR: Media & Entertainment

BSE Live

May 28, 11:07
110.00 10.00 (10.00%)
Volume
AVERAGE VOLUME
5-Day
117
10-Day
631
30-Day
549
3,299
  • Prev. Close

    100.00

  • Open Price

    106.00

  • Bid Price (Qty.)

    110.00 (3366)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

May 28, 11:05
109.70 9.95 (9.97%)
Volume
AVERAGE VOLUME
5-Day
1,961
10-Day
2,054
30-Day
2,934
9,363
  • Prev. Close

    99.75

  • Open Price

    109.05

  • Bid Price (Qty.)

    109.70 (9250)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2018 2016 2015 2014 2012 2011 2010 2009 2008

Chairman's Speech

Were you pleased with the performance of the Company? We were not happy with our performance in 2010-11 for an important reason: ''Prince'', the film that we launched, did not meet our expectations. This reflected in our overall performance during the year under review: Net revenues declined from Rs. 85 crore in 2009-10 to Rs. 67 crore in 2010-11. At Tips, we see the decline in our performance during the year under review as a temporary aberration. Your Company continues to enjoy a reputation for creating quality content and professional practices and we soon expect to overcome the performance of 2010-11. Where is the Company placed within its industry space? Tips is one of the leading entertainment and media companies in India. It is one the few companies with a leading presence in both film and music. Tips evolved into one of India''s most- respected film production companies, balancing quality film content with compelling music. The result is that the Company has emerged as a partner of choice for artistes, technicians and exhibitors, resulting in a sound throughput across a wide entertainment basket. How is India''s media and entertainment industry evolving? India''s media and entertainment space is passing through some exciting times. The media universe is becoming increasingly complex, specialised and fragmented. The consumer preferences are fleeting; the cycle time for popular song to run its course has declined even as the cost by rights for song has increased. At Tips, we believe that it is indeed possible to profit from this seemingly complex environment. For one, it is increasingly critical to get one''s strategic moves right as the cost of error can indeed be high. Besides, companies need to evolve in a manner in which they distribute content over secure platforms, optimise costs and adopt the best operational practices. What gives you the optimism that Tips can prevail in this environment? At Tips, we possess the capability to deliver award-winning and revenue-generating entertainment content. Besides, we also possess an attractive business model when appraised from a medium-term perspective. The strength lies in our captive film production and distribution capabilities, which makes it possible for us to produce quality films at a low cost within schedule and work with credible distribution partners who can help us maximise our revenues. These films generate chunky revenues during the time they are released wherein our objective is to earn higher than what we spend on them. For instance, our 2009-10 release Ajab Prem Ki Ghazab Kahani figured among the three top grossers of 2009-10. We released three films within a space of six months in 2009-10 and expect to sustain this pipeline over the foreseeable future. These films do not merely generate revenues during the time of their release; since they possess a long shelf life, they generate a reasonable annuity income through their film and music content. What is the basis of your industry optimism? The overall media and entertainment market in India is expected to grow at a compounded annual growth rate of 14 percent per annum through 2015 to reach INR 1.3 trillion, catalysed by the emergence of different media, higher audience segmentation, content for niches, robust regional growth, growing content digitisation, increasing mobile and broadband penetration and industry consolidation. Earlier, it was possible to see films in the conventional theatre or television format; round the corner, it will be possible to watch films on mobile phones, widening our revenue stream. How does the Company intend to exploit this industry optimism? The Company has the following initiatives lined up for 2011-12: - A big-budget sequel to Race (launched in 2008) called Race 2 with a leading star cast - A mid-budget film with Shahid Kapoor (directed by Siddhartha Anand, music by Pritam) - A Punjabi film named Jihne Mera Dil Luteya directed by Mandeep Singh - Acquire rights for music The Company plans to release around five films by March 2013, which should increase revenues from Rs. 67 crore in 2010-11 to Rs. 200 crore by 2013. How does the company intend to enhance shareholder value? We feel that our existing strategy will translate into enhanced profits across the medium-term. Besides, our share buyback was successfully completed. In due course, we expect our performance to improve and for this to reflect in superior value for all those who hold shares in our Company. These initiatives will enhance film production revenues in an attractive way over the foreseeable future. Business segments Film production Tips Industries entered the film production business in 1995. The Company released 27 films as on March 31, 2011. The Company distributed its own films rather than buy them from other production houses. The Company generated revenue from box-office collections, International rights, music, home video rights, among others. Outlook - The Company intends to launch a big-budget film Race 2, starring Saif Ali Khan, John Abraham, Anil Kapoor, Deepika Padukone and Sonakshi Sinha (directed by Abbas-Mastan, music by Pritam) in 2011-12. - The Company intends to produce a mid-budget film with Shahid Kapoor (directed by Siddhartha Anand, music by Pritam) in 2011-12. - The Company intends to release a Punjabi film, Jihne Mera Dil Luteya in 2011-12. - The Company intends to enter into a tie-up with a leading studio to invest, fund and distribute films made by the Company. - The Company''s repertoire of films of last 25 years is expected to continue generating royalty revenue. - The Company plans to release around five films by March 2013. These initiatives will enhance film production revenues in an attractive way over the foreseeable future. m^w, Music In India, music business is an important part of the entertainment industry with total size of roughly US$ 10 million. Hindi film music dominates this with a 40% share followed by regional and old hits at 25%. However, the recent affect of digitisation has resulted in shake-up of old and established model, and is likely to see major revamping. Unless a newer model emerges, the company has decided to remain selective in the music business. Tips acquired music rights for the movie BOL during the year under review. The Company appointed a new head of music business development to unlock its archival value. Royalty income from music rights increased from Rs. 31 crore in 2009-10 to Rs. 36 crore in 2010-11. The Company''s 25-year music repository is expected to generate royalty revenues across the coming years. Chairman Kumar S. Taurani reviews the company''s performance