Saregama Q1FY19-20 Financial Report : Drastic Decline In Profits, Carvaan & Yoodlee Films Show Promise

Saregama India Ltd., India's oldest record label company has published financial results for the first quarter of the financial year that ended June 30, 2019. On a QoQ (Quarter on Quarter) basis, the company's total income has declined from Rs. 139.14 crores to Rs. 128.08 crores which is a negative 7.95% change and on a YoY (Year on Year) basis the profits saw a huge hit of 19.27% coming down from Rs. 158.66 crores to Rs.128.08 crores. Coming to the net profit figures, the company incurred a net loss of Rs. (1.24) crores which is a drastic drop from Q4FY19's net profit of Rs.16.55 crores (-107.49%). Comparing the figure to last financial year's net profit, the number went down by -114.37% from FY19's Rs. 8.63 crores. The most valuable product being offered by Saregama is Carvaan, a portable audio player while Yoodlee films, which is the film division of Saregama India Limited also looks promising. The company launched Carvaan Go and Carvaan 2.0 during the last quarter and saw a 34% YoY increase in units sold and consequently beat the odds of “falling store footfalls and suppressed demand in almost all categories”. The company has now become more Carvaan focussed and has made it a priority like they should have since that segment accounted for almost 90% of the company's revenue during the last financial year. Revenue from TV/Movie segment which includes Yoodlee films dipped 23% YoY to Rs 14.29 crore. This segment of the company is one of its two latest initiatives alongside Carvaan and it focusses more on digital distribution featuring films with intrepid themes and compelling storylines, shot at real locations with sync sound. The last movie released on Netflix by the company in this quarter is called Hamid which has been directed by Aijaz Khan. The film stars Rasika Dugal, Vikas Kumar, and Talha Arshad Reshi and is an adaptation of the play Phone No 786 by Mohd. Amin Bhat. Along with that, Yoodlee Films also has a lot of new projects coming up like Chaman Bahaar, KD, Chhote Nawab, Axone, and Habbadi. On the YouTube front, the company recently achieved the amazing milestone of hitting 10 Million Subscribers while amassing over 2.8 billion views in total as of this writing. But during Q1FY20, the company fell to 958 Million Views which was a 61% increase from 594 million views which is where the company was at during the corresponding quarter last year. Along with that the OTT streams were at 1.35 billion which is a decline from Q4FY19's 1.4 billion streams but still a massive increase from last financial year's Q1 figure of 883 million streams. As of now, the company's shares are trading at Rs. 355 on BSE and Rs. 353.80 on NSE.