Saregama India (SAREGAMA) Q4 2000 earnings summary

Executive summary

• FY00 revenue rose 19% to Rs146.09cr and net profit increased 53% to Rs6.00cr; total dividend was 30%, double the prior year.

• Strategic priorities included expanding international and regional music operations, using the archive and online channels, and entering audio software for private FM radio.

Financial highlights

• Total income was Rs146.09cr vs Rs123.18cr; operating profit Rs7.27cr vs Rs4.82cr, PBT Rs6.55cr vs Rs4.23cr and PAT Rs6.00cr vs Rs3.93cr.

• Sales and licence fees reached Rs140.52cr vs Rs118.87cr; other income was Rs5.56cr vs Rs4.31cr.

• Voluntary retirement scheme costs of Rs71.64 lakh were charged below operating profit; royalty expenses included a Rs433 lakh write-back of liabilities no longer considered necessary by management.

• Revenue from intellectual property rights was Rs1.75cr, 25% higher YoY.

Outlook and guidance

• FY01 was expected to outperform FY00, supported by a strong film and music release slate, regional-market growth, supply-chain improvements and technology-led customer choice.

• Audio software for newly licensed private FM channels was expected to begin generating revenue during FY01.

• Plans included extending saregama.com into Asia, launching webcasting and international B2B operations, and digitising the catalogue for future digital downloads.