Saregama India (SAREGAMA) Q1 2025 earnings summary

Executive summary

• Q1 FY25 operating revenue reached INR 2,053 Mn (₹20,528 lakhs), up 26% year-over-year, but down 22% sequentially from Q4 FY24.

• Adjusted EBITDA stood at INR 680 Mn, a 9% increase year-over-year, with a margin of 33%.

• PAT for Q1 FY25 was INR 371 Mn (₹3,709 lakhs), down 14% year-over-year and 31% sequentially, with a PAT margin of 18%.

• The quarter reflects the impact of the Pocket Aces Pictures Private Limited acquisition, completed in November 2023.

• The company maintains a strong IP portfolio and digital presence, with 262Mn+ social media followers and 160K+ songs.

Financial highlights

• Revenue from operations: INR 2,053 Mn (₹20,528 lakhs), 26% YoY growth, 22% QoQ decline.

• Adjusted EBITDA: INR 680 Mn, 9% YoY growth, 21% QoQ decline; margin at 33%.

• PAT: INR 371 Mn (₹3,709 lakhs), 14% YoY decline, 31% QoQ decline; Diluted EPS at 1.92.

• Total expenses increased 36% YoY to INR 1,373 Mn (₹16,676 lakhs).

• Cash and cash equivalents rose to INR 1,881 Mn as of June 30, 2024.

Outlook and guidance

• Revenue (excluding Carvaan) is expected to grow at a 30% CAGR over the next three years, with PBT projected to double in 3-4 years.

• Management notes that results for the quarter and year are not directly comparable to prior periods due to the acquisition of Pocket Aces Pictures Private Limited.

• Content investment of INR 1,000 crore planned over three years, with INR 300+ crore targeted for FY25.

• Five-year payback period maintained for new content investments.

• Pocket Aces expected to reach breakeven by year-end and grow at 25% CAGR over five years.