Saregama India Ltd Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kavish Parekh - B&K Securities - Analyst : Hi, sir. Thanks for the opportunity on. So at the start of the call, you allude that the music business needs to be looked at on a 12-month basis. And even then unit revenues are up only 7%, further margins to have been volatile. So what explains this? So what led to the sharp fall in margins, our music margin this quarter? And secondly, any color on the performance of pocket ACs? Our numbers suggest that focus is now is now a close to breakeven. So is that the right understanding? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. AUGUST 05, 2024 / 6:30AM, SARE.NS - Q1 2025 Saregama India Ltd Earnings Call

Question: Kavish Parekh - B&K Securities - Analyst : Just as a follow-up on the artist management vertical of revenues from the same have started flowing in only three q. 24 onwards or initiatives that started reporting them separately.

Question: Kavish Parekh - B&K Securities - Analyst : All right. All right.

Question: Pulkit Chawla - Emkay Global Financial Services - Analyst : Okay.

Question: Pulkit Chawla - Emkay Global Financial Services - Analyst : Got it.

Question: Pulkit Chawla - Emkay Global Financial Services - Analyst : Thank you.

Question: Jyoti Singh - Arihant Capital Markets Limited - Analyst : Yes. Thank you for the opportunity. Sir, my question is on the event side of performance. If you can shed some light and also the impact on revenue coming from the delete data and content that was held in US and Canada in Q1 and toward. So just wanted your view on the influencer side, like we are focusing to advertising to influencers who like a lot of focus or IPG group to go with the incentives. So this was going to be our strategy for most of the group company that we are doing.

Question: Jyoti Singh - Arihant Capital Markets Limited - Analyst : So this one would think as we are now focusing more of launching younger generations fingers. So what do you comment on that dynamic? Because it will be lesser in cars. So it will obviously going to help us to reduce our costs to how it will go into benefit for us.

Question: Jyoti Singh - Arihant Capital Markets Limited - Analyst : Okay. Thank you so much.

Question: Lokesh Manik - Vallum Capital - Analyst : Please go ahead your own without whom the common theme or just one question from my end on the music revenue this quarter was about one 40 crores versus one 49 crores in June of last year. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. AUGUST 05, 2024 / 6:30AM, SARE.NS - Q1 2025 Saregama India Ltd Earnings Call

Question: Pulkit Chawla - Emkay Global Financial Services - Analyst : So my question was because you're going to see one, two, three seven one, 54 in Europe and then charge last year of 18 crores for this for the June quarter last year. Also, we have not seen the throughput or, you know, there's nothing much to read into this in MAG, nothing above my only part of which I said earlier also.

Question: Pulkit Chawla - Emkay Global Financial Services - Analyst : And so if I remove government and this has actually grown because not a lot of that last bullet on the top than it is at one point, you will see end of the year a 26% growth, please, even if the quarter news is very good, a very bad ignore, it see us either on a 12-month rolling basis, the trends and future basis on data and comparing 12 months. So I was just comparing it with the content cost that we incur losses and just gauge you know, getting the throughput, but I did not include the guideline on this financial or exclude because of the numbers. So probably that may be the reason why that discrepancy. Greg, that's it from my side, the content.

Question: Pulkit Chawla - Emkay Global Financial Services - Analyst : Yes, thank you. Stop city becomes so my first question relates to YouTube. So just wanted to understand the impact of virtualization on YouTube compared to, let's say, sequentially, you did highlight there has been some decrease because of diversion of advertising funds and related approximately what proportion of the YouTube views that you typically do report is that of the short spectrum and therefore, although you are reporting side a large significant amount of minor views are coming actually from the shorts platform only since active site and start reporting all views that February card-related.

Question: Pulkit Chawla - Emkay Global Financial Services - Analyst : So just wanted to understand you mentioned about, let's say, because of YouTube views and actually gone up this quarter on a sequential basis, but there seem to be some weaknesses, honestly, on a realization basis on residents since April first, ambitious.

Question: Pulkit Chawla - Emkay Global Financial Services - Analyst : Got it. And second, on the events side, this quarter, you had 11 concept with the jeans in the US-Canada, but revenue obviously doesn't seem to be that high. If you're comparing on a sequential basis and you did highlight that you had a relook at the entire strategy last quarter. So is that assumption if you could throw some light on that? Yes. So on the Events business, can you just be a little bit more specific? I forget what is excess information. So, you know exactly. You've done around 11 concept two digit rate, but I think if you look at the revenue cycle on a sequential basis, there hasn't been too much of an improvement also. And you did highlight in terms of your you had a relook at August at a strategy, right, last quarter. So just wanted to have some color around as to what does the deal what the new strategy has been in the wind segment? It all depends on, you know, how we are structuring the entire event, while we take care of, you know that this entire event, the revenues that we realize depend on what kind of structuring is being done on the entire event because these are being done overseas and they've got different partners managing different events in the shows.

Question: Pulkit Chawla - Emkay Global Financial Services - Analyst : Got it. That's helpful. And my last question is on the artist side. I mean, given that you've reported, let's say, low single-digit margins for them for the couple of quarters that you've reported your numbers where you typically see medium term margins are trending towards in this particular segment you data and artist side, typically the best margins that you can end up doing artistic for these members are no capital that artist management takes from order management is literally in a way, right, because all the capital is on music on artist management on its own.

Question: Pulkit Chawla - Emkay Global Financial Services - Analyst : Got it. That's it for me. Thank you very much.

Question: Dheeresh Pathak - WhiteOak Capital Management - Analyst : Yes, thank you.

Question: Pulkit Chawla - Emkay Global Financial Services - Analyst : So when you see that 16, so you said the music is one 42 plus 16. So this 16, which you're carving out now in the base quarter, June 23 quarter, how much would have been the artist management and also artist management today is a combination of what people are doing with book it in pocket aces and in pocket is also there and music influencers and acting influencers as well as the artist management that we're doing within Silego such a combination that you're sitting is seeing out there? Correct. So the 16 eight, 16 crores this quarter is a combination of your legacy guess management and the pocket issue that just management right in the base quarter, June 23, you would not have the pocket is artist management, but you would have your existing base legacy artist management. So that legacy artist management in the base quarter, if you can give a ballpark number to that extent.

Question: Pulkit Chawla - Emkay Global Financial Services - Analyst : But without artist management, the music licensing itself also should be in 20% plus, right, because not what we had acquired, you know, without getting into the same business for us.

Question: Pulkit Chawla - Emkay Global Financial Services - Analyst : Okay. And just I mean, I know there is some variability quarterly, but compared to the others industry peer, why is there so much deviation in the quarter on quarter performance, it will be nice. Right, David.

Question: Dheeresh Pathak - WhiteOak Capital Management - Analyst : Okay, thank you for taking my question.

Question: Swapnil Potdukhe - JM Financial - Analyst : Hey, Graham. Thank you for the opportunity. Sir, my first question is with respect to your cargo revenue, could you give us a sense as to what what was the core of our revenue last year, same quarter? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. AUGUST 05, 2024 / 6:30AM, SARE.NS - Q1 2025 Saregama India Ltd Earnings Call

Question: Swapnil Potdukhe - JM Financial - Analyst : Okay. I noticed the second question is there with respect to a multiyear deal that one of our competitors, our competitors have signed with a global music label, which I think is helping them get better rates from a global OTTs. Have you thought on this line. So you're not getting those kind of deals wherein we align with some global music label and are not unlike the data.

Question: Swapnil Potdukhe - JM Financial - Analyst : Fair enough. That's very well explained that. The next question is with respect to how much content accretion are we planning to, I think in the cash flow statement are shown on 47 crores of content being acquired for this particular quarter for the full year of where will we stand on the on?

Question: Jyoti Singh - Arihant Capital Markets Limited - Analyst : Okay. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. AUGUST 05, 2024 / 6:30AM, SARE.NS - Q1 2025 Saregama India Ltd Earnings Call

Question: Jyoti Singh - Arihant Capital Markets Limited - Analyst : Thank you.

Question: Mayur Patel - 360 ONE AMC - Analyst : Hi. Thanks for the opportunity on the phone to confirm one thing. A music and artist management segment grew by 6% year-on-year in this quarter.

Question: Mayur Patel - 360 ONE AMC - Analyst : So to come.

Question: Mayur Patel - 360 ONE AMC - Analyst : Can you just say my line was not clear. Content acquisition was 27 crores in this quarter and you're guiding for 300 crores for this year. Is it right?

Question: Mayur Patel - 360 ONE AMC - Analyst : Three, the total acquisition value for this quarter, we don't share the accretion really every quarter like the guidance has been given on the content investment. That's the value of the total content that gets released during the quarter and 1,000 crores is the number for three years, around 300 crores plus is a number for this year. We will share that we are on track to achieve this 300 crores content acquisition for this year for this year, ES. 300 plus is the target, and we are, on course to meeting.

Question: Mayur Patel - 360 ONE AMC - Analyst : I'll come back for more questions.

Question: Pratik Bandari - AART Ventures - Analyst : Yes, hi. Thanks for the opportunity. Just wanting to understand as to where are we in terms of the revenue for funds or have you started generating revenue for that?

Question: Pratik Bandari - AART Ventures - Analyst : And you also mentioned that the core of it is, is you have an intent to grow with a target of 25% and five this year, and we should be at a breakeven.

Question: Pratik Bandari - AART Ventures - Analyst : Okay.

Question: Pratik Bandari - AART Ventures - Analyst : Thanks a lot. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. AUGUST 05, 2024 / 6:30AM, SARE.NS - Q1 2025 Saregama India Ltd Earnings Call

Question: Akhil Gulecha - Pkeday Family Office - Analyst : Hi, Mr. Mara. So you keep saying that we should look at music and artist management as well as one vertical, and we will do that go into Empire. We can't look at it this quarter because there was no artist management in quarter one of FY 24. So for a like-to-like comparison, we have to look at the music revenue and it just feels like the music licensing revenue by itself like excluding artist management, which is an inorganic acquisition, the music licensing revenue by itself has not really grown this quarter. So why is that happening?

Question: Akhil Gulecha - Pkeday Family Office - Analyst : It's largely because of the shift from free to paid. So I think for the next quarter, that should go away.

Question: Divyanshu Mahawar - Dalal & Broacha Stock Broking Private Limited - Analyst : Please follow up, Mike, and thank you for the important DDR. So I just wanted to know a broad kind of broad industry question that if say, let all these platforms move move behind a paid wall. So what impact do you see in the piracy? And is there any change in the payback period happens if all this new platform move to a paid or pay subscription model? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. AUGUST 05, 2024 / 6:30AM, SARE.NS - Q1 2025 Saregama India Ltd Earnings Call

Question: Divyanshu Mahawar - Dalal & Broacha Stock Broking Private Limited - Analyst : And second question is that is that are you looking that government is taking a step towards a piracy issue? And how do you see this subscription movie going forward in coming years? Means is it implementing on the ground level?

Question: Ravi Kumar Naredi - Naredi Investments - Analyst : Yes, sir. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. AUGUST 05, 2024 / 6:30AM, SARE.NS - Q1 2025 Saregama India Ltd Earnings Call

Question: Ravi Kumar Naredi - Naredi Investments - Analyst : Good morning.

Question: Ravi Kumar Naredi - Naredi Investments - Analyst : And sort of operational cost, do you include content cost, contract manufacturing charges, cost of production of in this cost to hire side the 68 crore in this quarter. So what is the extraordinary expenditure we had the release of and we have even we have music also, which is on the higher side. So everything in revenue, which is on the high side, we'll have the operational costs involved. Property & Leasing segment revenue. Indeed, we do by 46.53 crores revenue here. What is not able to gain anything material from this video? What is this?

Question: Ravi Kumar Naredi - Naredi Investments - Analyst : And sir, now we reach 70 plus sales in our database. So what is what explains which you want to share with us now sorry, sir. And for totally films in a beauty and 70 plus films we are having in our database for the future.

Question: Ravi Kumar Naredi - Naredi Investments - Analyst : And sir, lastly, like Chiquita and it's super important that we are we anyone made and we have attached with that. The movie is such a fruit in future.

Question: Ravi Kumar Naredi - Naredi Investments - Analyst : So you can take and you are doing with from the very hard work. We wish all the best at the hard work our own.

Question: Rohan Advant - Prad Capital - Analyst : Yes, thanks for the opportunity, but I've understood your guidance up. Peter, I just picked this up a level of what happened. The Spartan Chassis costs materially, six crores in FY 20 for the new pack protein side with us online. But based on the acquisition that we plan and we are working with that context, average cost, these are slightly different so the content charge will be pretty high in FY 20 because the total amount of content investment we are doing in FY 25 is going to be 50% higher than what we did in FY 24.

Question: Rohan Advant - Prad Capital - Analyst : So at the EBIT level, we expect to grow in and identify further growth will be there.

Question: Rohan Advant - Prad Capital - Analyst : Got it. And just secondly, on the EBIT or sales growth, we see things that are achievable. And within the general via e-commerce papers will be funded debt offering. Do you think that Airbus and Boeing project?

Question: Rohan Advant - Prad Capital - Analyst : The I guess what I'm not clear but equally owned by I mean, telecom operators, right, which are the ending with bema will be bundling their services with other offerings.

Question: Rohan Advant - Prad Capital - Analyst : So I mean, yes. And does it make sense for them on three, unlike us fortify like does it make you one sense for them to turn paid or they are likely to remain free forever? So my expectation we believe bundled with some other set up, but they're paying of.

Question: Rohan Advant - Prad Capital - Analyst : Understood. Thanks for taking my question and honest, thank you.

Question: Pulkit Chawla - Emkay Global Financial Services - Analyst : Okay.

Question: Pulkit Chawla - Emkay Global Financial Services - Analyst : Thank you. So all this mobile now. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. AUGUST 05, 2024 / 6:30AM, SARE.NS - Q1 2025 Saregama India Ltd Earnings Call