Saregama's net profit jumps 233% backed by booming Carvaan sales
The growth story of Saregama is driven by the domination of Carvaan, with 2.29 lakh units sold in the second quarter of 2018-19.
November 08, 2018 / 01:16 PM IST
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Saregama's year-on-year (YoY) net profit jumped by 233 percent to Rs 15 crore in the second quarter, mostly driven by a 40 percent increase in the sales of Carvaan, the portable digital audio player.
The company's revenues were up 64 percent to Rs 13.84 crore. The growth story of Saregama is driven by the domination of Carvaan, with 2.29 lakh units sold in the second quarter of 2018-19. Also, the new premium variant of Carvaan, Carvaan Gold and Mini 2.0, were launched in the quarter.
Building on the success, Saregama is investing heavily in consumer research and technology in order to come up with customer friendly products.
“Our one of its kind strategic partnership with world’s leading audio company, Harman is a step in this direction only. Together we plan to come up with the most innovative products in future,” Vikram Mehra MD, Saregama India told Moneycontrol.
The first product from this partnership, Carvaan Gold, has been launched in time for the festival season. Carvaan Gold is designed using Harman Kardon sound technology and speakers. It comes in a hi-end metallic body, and is available in exclusive champagne gold and rose gold colours. The product also comes with a companion app that allows users to create their own playlist or select their favourite song on Carvaan.
Additionally, according to the Q2 results, Saregama has also seen a 28 percent increase of its B2B licensing business.
“We have been consistent in our upward surge in revenue and profits quarter on quarter, and we expect this trend to continue. We expect all our business verticals namely digital music licensing, Carvaan, Yoodle films and TV production business to grow steadily and profitably over the next few years,” said Mehra.