BENGALURU: Indian Custodians of music company Saregama Limited (Saregama) reported 2.33 times the consolidated PAT in FY-2014 at Rs 18.91 crore (10.7 per cent of consolidated total operating income or Tot Inc) as compared to Rs 8.11 crore (4.4 per cent of Tot Inc) in the previous financial year. The company’s consolidated revenue in FY-2014 is at Rs 177.49 crore which was 4.6 per cent lower than Rs 185.99 crore in FY-2013.

(1) 100,00,000 = 1 crore = 100 Lakhs = 10 million

(2) Annual numbers in this report are consolidated, while quarterly numbers are standalone.

(3) Saregama claims to be the custodian of over half of all the music ever recorded in India and says that this makes it the premier music destination for South Asian music and the most authoritative source of the region's musical heritage. Saregama says further that it has the largest music archive - and catalogue - in India.

Saregama’s standalone PAT in Q4-2014 was more than six fold (6.6 times) at Rs 6.75 crore (15.6 per cent of Tot Inc) as compared to Rs 1.02 crore (2.4 per cent of Tot Inc) in the immediate trailing quarter and almost triple (2.9 times) at Rs 1.83 crore (5.1 per cent of Tot Inc) in the year ago quarter Q4-2013.

The company has tightened its expense and reported lower depreciation and amortisation expense (depreciation), and hence despite lower income, has managed to boost up profits during the financial year as well as the quarter.

Saregama reported revenue of Rs 43.35 crore in Q4-2014, which was 0.8 per cent more than Rs 43.02 crore in Q3-2013 and 9.6 per cent lower than Rs 47.95 crore in Q4-2013.

Saregama’s revenue comes in from two main streams and three segments. The two streams are Net Sales and License Fee. While net sales in FY-2014 reported a 12.6 per cent dip to Rs 60.95 crore (36.3 per cent of Op Inc) from Rs 69.37 crore (39.7 per cent of Tot Inc), License Fee saw a small increase of 1.3 per cent in FY-2014 at Rs 106.39 crore (63.4 per cent of Op Inc) from Rs 104.98 crore (60.1 per cent of Tot Inc) in FY-2013.

The three segments that contribute to Saregama’s revenue are music; films and television serials (FTS); and publication. Music segment reported consolidated revenue of Rs 113.96 crore (64.2 per cent of Tot Inc) in FY-2014, which was 18.5 per cent lower than Rs 139.8 crore (75.2 per cent of Tot Inc) in FY-2013. This segment reported operating profit of Rs 42.45 crore which was 12.3 per cent less than Rs 48.42 crore in FY-2013.

FTS segment reported consolidated operating revenue of Rs 56.24 crore (31.7 per cent of Tot Inc) which was 30.8 per cent more than the Rs 42.99 crore (23.1 per cent of Tot Inc) in FY-2013. This segment reported an operating profit of Rs 1.75 crore in FY-2014 as compared to the massive Rs 11.49 crore losses in FY-2013.

Saregama’s publication segment reported consolidated operating revenue of Rs 7.29 crore in FY-2014 which was more than double the Rs 3.2 crore in FY-2013. Loss from this segment reduced substantially to Rs 3.93 crore in FY-2014 as compared to the huge loss of Rs 12.83 crore in FY-2013.

The company’s Total expenditure (Tot Exp) in FY-2014 at Rs 163.35 crore (92 per cent of Tot Inc) was 10.8 per cent less than Rs 183.09 crore (98.4 per cent of Tot Inc) in FY-2013. In Q4-2014, Saregama’s Tot Exp at Rs 25.41 crore (58.6 per cent of Tot Inc) was 39.1 per cent lower than the Rs 41.7 crore in Q3-2014 and 48 per cent lower than the Rs 48.85 crore in Q4-2013.

Saregama paid 10.6 per cent higher royalty fee at Rs 17.63 crore (9.9 per cent of Tot Inc) in FY-2014 as compared to Rs 15.94 crore (8.6 per cent of Tot Inc) in FY-2013. In Q4-2014 the company paid Rs 1.64 crore (3.8 per cent of Tot Inc) towards royalty fee, which was 53 per cent lower than the Rs 3.49 crore (8.1 per cent of Tot Inc) in Q3-2014 and 57.2 per cent less than the Rs 3.83 crore (8 per cent of Tot Inc) in Q4-2013.

A major expense head for Saregama is cost of Production of Films, Television Serials and Portal (Production cost). The company’s consolidated Production cost in FY-2014 at Rs 51.78 crore (29.2 per cent of Tot Inc) was 30.9 per cent more than the Rs 39.55 crore (21.3 per cent of Tot Inc) in FY-2013.

Standalone Production cost in Q4-2014 at Rs 14.75 crore was 3.7 per cent more than Rs 14.23 crore (33.1 per cent of Tot Inc) in Q3-2014 and 26.8 per cent more than Rs 11.63 crore (24.3 per cent of Tot Inc) in Q42013.

As mentioned above, the company has pared its expenses and reported lower depreciation.

Here are the figures for Depreciation reported by the company: FY-2014 – Rs.3.23 crore; FY-2013 – Rs.12.94 crore; Q4-2014 – Rs.0.73 crore; Q3-2014 Rs.0.69 crore; Q4-2013 – Rs. 2.75 crore.

Advertisement and Sales Promotion expense : FY-2014 – Rs.9.41 crore; FY-2013 – Rs.15.8 crore; Q4-2014 – Rs.2.13 crore; Q3-2014 – Rs.2.17 crore; Q4-2013 Rs.3.83 crore.