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Saregama continues to face pressure in the wake of COVID-19

The on-going COVID-19 pandemic has impacted Saregama's operations. While the company's operations wtinessed a to a 31% YoY decrease in overall turnover, the music label and film production company posted a 45% YoY increase in its net-profits, to ₹289 in Q2 FY021. Saregama reported that revenues in the music division had reduced by 31% YoY to ₹6.6 crore, while in the TV & films division revenues fell by 76% YoY to ₹66 crore and publication wherein revenues fell by 63% YoY to Rs 1.1 crore. "The key driver for the growth continues to be the increasing Digitisation in India. With more and more people consuming content on their smartphones, Saregama is constantly able to increase monetisation of its IP (music, films, series). This phenomenon has become even more accelerated due to the stay-at-home phenomenon caused by Covid-19," the company said in a statement. Carvaan sales continue to fall: From January this year onward, sales of the company's flagship product have been dwindling, particularly since the number of Carvaan music player units sold decreased significantly during the months of April and August in the wake of the COVID-19 pandemic. In Q2FY21, the company sold 81,000 units compared to just 15,000 between April and June and 74,00 between October and December last year. As of Q2FY20, the  total sales volume of Carvaan has fallen by 67% YoY. "On Carvaan, we identified at the end of the last year, there are three big issues that we were facing,"says Vikram Mehra, managing director, Saregama India…

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