Music label Saregama posted a 3 percent increase in net profit at Rs 43.3 crore for the first quarter of the current financial year on strong content release in the music segment along with strengthening of live-events business. The company reported a profit after tax of Rs 41.9 crore in the year-ago quarter.
Revenue from operations stood at Rs 163.3 crore, up from Rs 166.1 crore in the year-ago period.
Saregama India's vice chairperson Avarna Jain said the company continues to invest in content that generates healthy returns and is diversifying the business to grow profitably.
Among the company’s three segments — music licensing, music retail and films, events and series — music licensing is the biggest, contributing 61 percent to the overall revenue. Music retail (sale of Caravaan) and films, events and series account for 18 percent and 21 percent.
In the June quarter, the company released songs from Vicky Kaushal, Sara Ali Khan-starrer Zara Hatke Zara Bachke, which topped charts of streaming platforms like Spotify along with YouTube, Wynk radio.
"We also saw the release of the first song of Ranveer Singh and Alia Bhatt-starrer Rocky Aur Rani Ki Prem Kahani. Other big album this quarter was Telugu movie Kushi whose first song topped charts in Telugu. Malayalam album Romancham was a big hit," the company said in a release.
In non-films, the company released songs like Rista Rista by Stebin Ben, Kya Hua Tera Wada by Sanam in Hindi, Murabba by Khesari Lal, Nach Re Patarki 3.0 by Arvind Akela Kalu in Bhojpuri and Bhulva Mangu Chu Tane by Rakesh Barot in Gujarati, among others.
During the quarter, the company released 250 plus original songs and premium recreations of songs across Hindi, Bhojpuri, Gujarati, Punjabi, Tamil, Telugu, Malayalam, Marathi and Bengali languages.
The other highlight of the quarter was the use of the company's songs for Hindi film IB71, Tamil film Gullu Gullu, Malayalam film Enkilum Chandrike,
Assamese film Dr. Bezboruah and by brands like Mumbai Indians, Google, Uber, Spotify, etc in their ad films, the company said in its earnings release.
The music segment's revenue grew to Rs 149.1 crore in Q1 FY24 from Rs 127.4 crore in Q1 FY23.
The music segment revenue grew strongly due to new content continuing to contribute significantly to the revenue, the company said in its earnings presentation.
In the June quarter, the unit sales of wireless speakers Carvaan grew 52 percent year-on-year (YoY). Overall, the company sold 149,000 units in the June quarter compared to 98,000 during the year-ago period.
Revenue from operations stood at 163.3 crore as compared to Rs 166.1 crore a year ago.
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was at Rs 62.3 crore, down from Rs 65 crore in Q1 FY23.
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