Tips Music (TIPSMUSIC) Q4 99/00 earnings summary

Executive summary

• FY ended Mar. 31, 2000 marked a step-up in scale: sales reached Rs. 11,581.98 lakh, with profit after tax of Rs. 2,332.38 lakh.

• Growth was supported by film-music releases, catalogue sales, a higher CD share and marketing; Rs. 2,000 lakh was spent on audio rights for film releases.

Financial highlights

• Sales Rs. 11,581.98 lakh vs Rs. 5,658.05 lakh in FY 1998-99; total income Rs. 12,044.69 lakh vs Rs. 5,636.99 lakh.

• Profit before tax Rs. 2,416.32 lakh vs Rs. 743.75 lakh; profit after tax Rs. 2,332.38 lakh vs Rs. 680.27 lakh.

• Other income was Rs. 255.24 lakh vs Rs. 47.35 lakh; finance charges were Rs. 178.11 lakh vs Rs. 187.68 lakh.

Outlook and guidance

• Rights for nearly 60 upcoming movies formed a pipeline costing about Rs. 12,000 lakh, with substantial advances already paid.

• Audio-right releases costing Rs. 2,500 lakh, Rs. 4,000 lakh and Rs. 5,500 lakh were expected in FY 2000-01, FY 2001-02 and FY 2002-03, respectively.

• Planned capacity additions included a Mumbai studio, a second cassette-duplication phase, and a Silvassa CD plant with 40 lakh units annual capacity.