BENGALURU: Tips Industries Limited (Tips) reported a 12.5 per cent growth in its Audio Products Sales to Rs 9.01 core (75 per cent of Total Income from Operations or TIO) in the quarter ended September 30, 2015 (Q2-2016, current quarter) as compared to the Rs 8 crore (10.3 per cent of TIO) in Q2-2015. QoQ, Audio Product sales grew 1.6 per cent from Rs 8.86 crore (100 per cent of TIO). 

Tips reported TIO of Rs 12.01 crore in the current quarter. In Q2-2014, higher revenue from films resulted in the company reporting 6.5 times higher revenue of Rs 78 crore. In the immediate trailing quarter, Tips reported revenue of Rs 8.86 crore. 

The company reported profit after tax (PAT) of Rs 1.59 crore (13.2 per cent margin) in Q2-2016 as compared the profit of Rs 13.53 crore (17.3 per cent margin) in Q2-2015 and a loss of Rs 0.62 crore in Q1-2016. 

Segment numbers

The company’s Audio Production Sales/Income segment reported 2.6 times the operating profit of Rs 7.91 crore in Q2-2016 as compared to the Rs 3.05 crore in Q2-2015 and 3.9 per cent more than the Rs 7.62 crore in Q1-2016. 

Tips Film Production/Distribution (Production) segment reported revenue of Rs 3 crore (25 per cent of TIO) in the current quarter as compared to the Rs 70 crore (89.7 per cent of TIO) in Q2-2015. For Q1-2016, the segment had reported ‘nil’ revenue. 

Tips Production segment reported operating loss of Rs 0.88 crore as compared to an operating profit of Rs 19.07 crore in Q2-2015 and an operating loss of Rs 3 crore in the immediate trailing quarter. 

Let us look at the other numbers reported by Tips 

The company’s simple EBIDTA calculated without considering other income in the current quarter was 75.7 per cent lower at Rs 4.86 crore (40.5 per cent margin) as compared to the Rs 20.03 crore (25.7 per cent margin) in Q2-2015 and was 63.6 per cent more than the Rs 2.97 crore (33.5 per cent margin) in Q1-2016. 

The company’s Total Expenses in the current quarter reduced by 87 per cent YoY to Rs 7.57 crore (63 per cent of TIO) as compared to Rs 58.40 crore (74.9 per cent of TIO) and increased by 19.6 per cent from Rs 6.33 crore (71.4 per cent of TIO) in Q1-2016. 

Tips cost of production/distribution of films in Q2-2016 reduced 93.4 per cent YoY to Rs 3.31 crore (27.6 per cent of TIO) from Rs 50.44 crore (64.7 per cent of TIO) and increased 28.3 per cent to Rs 2.58 crore (29.1 per cent of TIO) in the immediate trailing quarter.

The company’s finance costs in Q2-2016 at Rs 3.31 crore (27.6 per cent of TIO) was 15.4 per cent YoY as compared to Rs 2.87 crore (3.7 per cent of TIO), but was 2.2 per cent lower than the Rs 3.39 crore (38.2 per cent of TIO) in Q1-2016.

Employee Benefit Expense in the current quarter at Rs 1.41 crore (11.7 per cent of TIO) was 9.1 per cent lower than the Rs 1.55 crore (2 per cent of TIO) in Q2-2015 and was almost flat (0.9 per cent lower) as compared to the Rs 1.42 crore (16 per cent of TIO) in the immediate trailing quarter.