Saregama India’s stand alone profit rises 235.43% in the September 2018 quarter
India’s oldest music label “Saregama” has been performing exceptionally well since past three quarters at the share market. The numbers from the quarter that ended by September 2018 are out, and Saregama has outdone itself by gaining a net profit of Rs. 14.96 crores as compared to Rs. 4.46 crores during the quarter of September 2017. That is a boost of 235.43% in net profit.
For this quarter, the company has reported a Standalone sales of Rs 138.42 Crore, up by 24.39 % from last quarter Sales of Rs 111.28 Crore and up 63.89 % from last year same quarter Sales of Rs 84.46 Crore.
Saregama India Ltd. key Products/Revenue Segments include Licence Fees which contributed Rs 134.69 Crore to Sales Value (64.70 % of Total Sales), Films/TV Serials which contributed Rs 66.92 Crore to Sales Value (32.15 % of Total Sales), Music Card which contributed Rs 5.38 Crore to Sales Value (2.58 % of Total Sales), Audio Cassettes/Compact Discs which contributed Rs .41 Crore to Sales Value (0.19 % of Total Sales), Other Operating Revenue which contributed Rs .22 Crore to Sales Value (0.10 % of Total Sales), DVD which contributed Rs .19 Crore to Sales Value (0.09 % of Total Sales), Sale of services which contributed Rs .17 Crore to Sales Value (0.08 % of Total Sales) and Others which contributed Rs .17 Crore to Sales Value (0.07 % of Total Sales)for the year ending 31-Mar-2017.
Carvaan and Nostalgia Market
Majority of the credit goes Saregama’s product ‘Carvaan’ which has brought Saregama back into retail. Carvaan comes pre-loaded with 5,000 songs from the pre-Internet era,. With this product Saregama is tapping into the nostalgia filled market and sales are excellent. Carvaan is available in Bengali, Tamil and Marathi, on top of the Hindi original.
|Quarter||Units sold||Gross margin|
|Q1 FY 2017–18||14,000||17%|
|Q2 FY 2017–18||95,000||19%|
|Q3 FY 2017–18||132,000||20%|
|Q4 FY 2017–18||146,000||22%|
|Total FY 18
(Figures taken from: https://www.medianama.com/2018/06/223-saregama-sells-389000-carvaan/)
The company was able to sell 390,000 Carvaan products during the last four fiscal quarters. Saregama had predicted that they would sell 200,000 units in Q3 and Q4, meaning they exceeded their own estimate by around 40%.
Saregama wants to double its production of Carvaan in FY 2018–19, selling around 750,000 units. They also expect gross revenue to go up to 25%. According to the company , Carvaan can theoretically reach a market of 25 Million.