Saregama India, one of India’s largest music labels, has reported a net profit of Rs 2.08 crore for the quarter ended September 30, 2014 (Q2-FY15), registering 16.5% decline from Rs 2.49 crore in the same quarter last year. In the previous quarter, the company had reported a net profit of Rs 3.36 crore.
The total operational income also declined to Rs 41.2 crore for the quarter, down 9.5% from Rs 45.53 crore in the same quarter last year. It had posted operational revenues of Rs 42.3 crore in the previous quarter.
Music business down: Revenues from Saregama’s music business dipped by 11.9% to Rs 25.96 crore, from Rs 29.46 crore in the same quarter last year. The profit before tax also declined to Rs 6.61 crore for the quarter, down 20.9% from Rs 8.36 crore in the same quarter last year.
Music revenues now contribute for 63% of Saregama’s operational revenues for the quarter, down from 64.7% in the same quarter last year and 65.9% in the previous quarter.
Films and TV serial revenues down: Revenue from Films and TV serials was down by 5.16% to Rs 15.24 crore for the quarter, from Rs 16.07 crore in the same quarter last year. The profit after tax also declined significantly to Rs 0.19 crore from Rs 2.54 crore profit in the same quarter last year.
The segment accounted for 36.9% of Saregama’s total revenues for the quarter, as compared to 35.3% in the same quarter last year and 34.1% in the previous quarter.
New MD: In August this year, Saregama had appointed former Tata Sky Chief Commercial Officer Vikram Mehra as its managing director who joined the company last month. Mehra took over from Surya Mantha who had resigned in February this year.
The company had switched its focus to digital sales by licensing its physical rights to Sony DADC last July and it had signed a partnership with the international digital distribution company Believe Digital for the digital distribution of its music catalogue in international markets, especially with the Indian diaspora in April this year.
