Tips Music Reports 27.65% Surge In Net Profit For Q3 FY25

Tips Music has reported impressive financial growth for the third quarter of FY25, with a 27.65% increase in net profit, reaching ?44.23 crore. Revenue from operations also witnessed a 19.81% rise, amounting to ?77.67 crore compared to the same period in the previous fiscal year. Profit before tax stood at ?59.11 crore, reflecting a robust growth of 27.53% over the ?46.35 crore recorded in Q3 FY24.

The company’s operating EBITDA surged by 28% to ?55.6 crore, up from ?43.4 crore in the corresponding quarter last year. This also led to an improvement in EBITDA margins, which rose to 71.6% in Q3 FY25 from 67% in Q3 FY24. Total expenses for the quarter grew moderately by 3.65% year-on-year to ?22.71 crore. Employee benefit expenses saw a notable increase of 16.15% to ?3.02 crore, while content costs slightly declined by 1.15% to ?14.55 crore.

During the quarter, Tips Music launched 116 new songs, including 40 film tracks and 76 non-film songs, showcasing its commitment to diversifying its music portfolio. The company’s YouTube channel also continued its upward trajectory, amassing a subscriber base of 113 million.

In a significant announcement, the company’s board declared an interim dividend of ?3 per equity share, with the record date set for 28 January 2025. Shareholders can expect the dividend to be paid on or before 18 February 2025.

Commenting on the company’s performance, Kumar Taurani, Chairman and Managing Director, expressed satisfaction with the results, stating, “I am pleased to announce that the company has performed well. For Q3 FY25, we achieved revenue of ?77.7 crore, up 20% year-on-year, with a PAT of ?44.2 crore, marking a 27% increase YoY. In line with our commitment to enhance shareholder value, the company has announced a 3rd interim dividend of ?3 per share.”

Hari Nair, Chief Executive Officer, highlighted the company’s digital growth and strategic collaborations. “We are seeing strong growth for our music across digital platforms. I am excited to announce our collaboration with TikTok, giving users worldwide access to Tips Music’s diverse library, featuring Bollywood classics and regional hits. Additionally, we partnered with Sterling Reserve and Bacardi’s Legacy brand to launch music IPs Take 2 and Roots, respectively,” he said.

Tips Industries, a leader in the acquisition and exploitation of music rights, continues to strengthen its market presence. Despite its strong performance, shares of Tips Industries slipped 5.99% to ?638.35 on the BSE.