ICICI Direct's research report on Saregama India
Saregama India's revenues for Q3FY21 increased 3.4% YoY to Rs 133.9 crore with growth being led by TV & films segment (Q3FY20 revenue was also impacted due to dip in Carvaan sales). Carvaan sales declined ~30% YoY to 138,000 units in Q3FY21. EBITDA grew 193% YoY to Rs 40 crore with EBITDA margin at 29.9%. Cost reduction across all fronts (except for TV & films production), mainly in promotion costs for Carvaan and other expenses led to strong growth in operating profit. Subsequently, reported PAT was at Rs 31.6 crore, up 211% YoY.
We maintain HOLD rating with a revised target price of Rs 1000/share (previous TP: Rs 680/share).
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