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Saregama India Ltd. is a leading entertainment company with a diversified portfolio that includes music, films, TV serials, and digital content. It holds one of the largest music archives in India, monetizing its content across various platforms such as streaming, licensing, and physical sales. Saregama is strategically expanding its business through new-age digital initiatives, making it a key player in the evolving media and entertainment industry.
Business Metrics
| Metrics | Value | Comment |
|---|---|---|
| Martket Cap | ₹9890 Cr | 11x |
| PE | 51.8 | I/PE - 37 |
| Promotor Holding | 59.2% | Increased little |
| OPM | 29.4% | |
| Interest Coverage | 132 | Comfortable |
| Sales | ₹845 Cr | |
| ROCE | 19.6% | |
| PAT | 191Cr | TTM |
Here are the detailed highlights from the Saregama India Q4 FY24 earnings conference call
Financial Performance
- Q4 revenue of INR 263 crores, up 29% year-on-year
- Q4 PBT of INR 76 crores, up 30% year-on-year
- FY24 music segment revenue (licensing + artist management) at INR 544 crores
- Company expects 30%+ revenue growth in FY25 (excluding Carvaan)
- Targeting 25-26% revenue CAGR over next 3-5 years (excluding Carvaan)
- Aiming to double PBT in next 3-3.5 years
- Maintaining adjusted EBITDA guidance of 32-33%
Content Investments
- Invested INR 200 crores in new music content in FY24
- Plans to invest INR 1,000 crores in music content over next 3 years
- Targeting acquisition of 25-30% of all new music released in India
- Content charge-off policy: Marketing (20% of cost) charged immediately, acquisition cost spread over 10 years (20% Y1, 15% Y2, remaining equally over 8 years)
- Internal payback period target of 5 years for content investments
Music Business
- Expects music vertical revenue to double to INR 1,000 crores in 3-3.5 years from INR 540 crores
- Catalog music growing at 12% annually, expected to reach 16-18% as OTT platforms turn paid
- New artist management vertical launched with 123 artists under Pocket Aces’ Clout and 9 under Saregama Talent
- Signed music rights for major upcoming films from Dharma Productions, Jio Studios, and others
OTT/Streaming Trends
- Some audio OTT platforms transitioning to paid subscription model
- Company’s revenue from paid subscribers in India grew 40%+ in FY24
- Management bullish on subscription growth in next 18-24 months
- Estimates 50-75 million paid music subscribers in India within 3 years
- Globally 650 million paid music subscribers
Video/Film Business
- Targeting 25% CAGR for video segment
- 70% cost recovery through satellite/digital licensing before theatrical release
- Released 4 films in Q4, with mixed performance
Other Segments
- Carvaan revenue at INR 130 crores in FY24
- Events business revenue at INR 13 crores
- Pocket Aces acquisition to help capitalize on digital advertising growth
Strategic Focus
- Monetizing existing IP and creating new IP across audio, video, and digital content
- Leveraging artist management for additional revenue streams
- Balancing investments between established and emerging artists, film and non-film music
- Expanding presence in regional languages
The management remains optimistic about growth prospects driven by India’s economic growth, increasing digital consumption, and the shift towards paid subscriptions in the music streaming industry.