BENGALURU: Saregama India Limited (Saregama) reported PAT of Rs 2.49 crore for Q2-2014, which was more than double (2.28 times) the PAT of Rs 1.09 crore the company had reported for the corresponding quarter last year and 36.1 per cent higher than the Rs 1.83 crore for the immediate trailing quarter (Q1-2014).

Segment Results

Music segment reported revenue of Rs 29.46 crore for Q2-2014 which was 10.27 per cent lower than the Rs 32.83 crore for Q2-2013, but 17.4 per cent more than Rs 25.09 crore for Q1-2014. Music segment returned an operating profit of Rs 8.36 crore for Q2-2014, almost same as the Rs 8.37 crore for Q2-2013, but 10.2 per cent lower than the Rs 9.31 crore for Q1-2014.

Last quarter (Q1-2014) Saregama's Films and television segment had turned profitable for the first time. This segment reported revenue of Rs 16.07 crore for Q2-2014, which was almost double (1.92 times) the Rs 8.38 crore for Q2-2013 and 49.9 per cent more than the Rs 10.72 crore for Q1-2014. This segment returned an operating profit of Rs 2.54 crore for Q2-2014 as compared to a loss of Rs (-3.96) crore for Q2-2013 and almost seven times (6.86 times) the Rs 0.37 crore for Q1-2014.

Let us look at the other Q2-2014 results reported by Saregama

Saregama says that it is the custodian of over half of all the music ever recorded in India.

For Q2-2014, the company reported total income of Rs 45.53 crore which was 10.5 per cent more than the Rs 41.21 crore for Q2-2013 and 27 per cent higher than the Rs 35.81 crore for Q1-2014.

Net Sales for Q2-2014 at Rs 16.37 crore was 16.6 per cent higher than the Rs 14.09 crore for Q2-2013 and 27.7 per cent more than the Rs 12.82 crore for Q1-2014.

Income from license fees at Rs 29.08 crore for Q2-2014 was 7.5 per cent higher y-o-y than the Rs 27.06 crore for Q2-2013 and 26.7 per cent higher q-o-q than the Rs 22.96 crore for Q1-2014.

Total expense for Q2-2014 at Rs 43.6 crore was 11.3 per cent more than the Rs 39.17 crore for Q2-2013 and 28 per cent more than the Rs 34.07 crore for Q1-2014.

Cost of production of films, television serials and portal for Q2-2014 at Rs 13.83 crore was 82.5 per cent higher than the Rs 7.58 crore for Q2-2013 and 54.2 per cent more than the Rs 8.97 crore for Q1-2014.

The company spent Rs 1.49 crore towards advertisement and promotion expense, which was less than a third (32.25 per cent) of the Rs 4.62 crore in Q2-2013 and 35.6 per cent lower than the Rs 2.21 crore for Q1-2014.

It paid more than double(2.18 times more) by way royalty at Rs 8.31 crore for Q2-2014 as compared to the Rs 3.82 crore y-o-y and also 2.4 times more than the Rs3.44 crore q-o-q.

Saregama has also made a much higher provision for doubtful debts/advances. In Q2-2014, Saregama provided for Rs 3.36 crore towards doubtful debts/advances, almost triple (2.69 times) more than the Rs 1.25 crore for Q2-2013 and 59.2 per cent more than the Rs 2.11 crore for the immediate trailing quarter.