MUMBAI: India’s oldest music label and the youngest movie studio, Saregama announced its financial results for Q1’19 (ended June 30). Company’s revenue has gone up by 9% on YoY basis.
The company launched two new products in the first quarter Carvaan Go – the mobile variant targeted at 35-60yrs segment and Carvaan 2.0 – the new age variant supporting both music and wifi based podcasts broadening Carvaan’s appeal to all members of households. The company registered 34% growth in Q1 FY20 in Carvaan units YoY basis, despite falling store footfalls and suppressed demand in almost all categories. In Q1 of FY'19-20, the company registered sale of 219K units of Carvaan.
Licensing
Income continued its growth trajectory and registered 16% growth in revenue on YoY basis.
Carvaan
The focus this quarter was to expand Carvaan’s footprint outside top 10 towns through targeted marketing campaigns, dealer network and sales manpower expansion in these areas. The net result was that the sales contribution of these 10 towns went from 39% in Q4’18-19 to 43% in Q1’19-20.
Yoodlee
Yoodlee also launched its movie Hamid on Netflix and it is trending since its release in May’19. Hamid also had the rare honor of winning two national films awards.
To promote pull for Carvaan demand in outside top 10 towns, Saregama India Limited has started focused investment in advertisement campaigns. In addition, company is also investing in building deeper sales structure in these areas. This has created little impact on the profitability and company reported PBT of Rs 20 million in Q1 FY20 standalone basis. The company has also started publishing consolidated results from this quarter onward. It also reported near breakeven results in Q1 FY19 to Rs 2.3 million.
Meanwhile, as a part of structural change, Saregama has decided to convert all existing SAR to ESOP.
