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Saregama Q2 Results: Shares Dip 4% Despite 40.5% Revenue Growth – Read More!

Saregama Q2 Results showed a 4% drop in share price today as net profit declined, with significant margin compression, highlighting profitability challenges despite a 40.5% rise in revenue.
Saregama Q2 Results: Shares Dip 4% Despite 40.5% Revenue Growth – Read More!

Saregama Q2 Results revealed a dip in share price, falling by 4% on November 5, after the company reported a decline in net profit and substantial margin compression for the September quarter. The decrease reflects challenges in profitability despite a strong increase in revenue.

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For the September quarter, Saregama’s net profit fell by 6.2% year-on-year to ₹45 crore, though revenue grew by 40.5% to ₹242 crore compared to the same period last year. The growth in revenue was driven primarily by music licensing and video business segments.

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The company’s EBITDA remained flat at ₹61 crore compared to last year’s corresponding quarter, while EBITDA margins dropped significantly. Margin compression was evident, with the EBITDA margin narrowing by more than 800 basis points to 25.2% from last year’s 35.3%, reflecting increased operational costs.

A notable contributor to the revenue decline was the Carvaan segment, which saw reduced sales both year-on-year and sequentially. This shift was attributed to Saregama’s strategic transition from distribution channels to primarily e-commerce and modern retail, aimed at cost efficiency.

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Saregama emphasised that while the sales volume of Carvaan might shrink, transitioning to e-commerce and retail would support margin improvements by reducing distribution costs. The company’s statement highlighted that despite this reduction, the business remains profitable through controlled costs.

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During the quarter, growth in Saregama’s segments was led by Music Licensing and Artist Management, which rose by 22%, and an impressive 377% year-on-year growth in the Video business. Despite current pressures, Saregama’s stock remains up 41% year-to-date, trading at ₹522.6.

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फार्मा स्टॉक में उछाल, ₹177 करोड़ के ब्राउनफील्ड प्रोजेक्ट के लिए कैपेक्स की घोषणा की।

फार्मा स्टॉक ने झगड़िया में ₹177 करोड़ का अपग्रेड प्लान किया है, जिससे संचालन ऑटोमेट होगा और इलेक्ट्रोलाइट एडिटिव्स सुविधा