Saregama has reported a near tripling of net profit in the third quarter of the current year vis–a–vis the corresponding quarter of last year. This has been led by the reduction in the interest costs which is due to the fact that the company repaid its debt after it made a private placement at a price of Rs 1,800 per share. Further there has been a six fold rise in other income, which comprises fees and dividends, on investments including investments in RPG Netcom and Music World Entertainment. Besides, the company has also written off Rs 33 m of VRS expenses in the current quarter. What is worrying however is a drop in the operating margins despite having a hit such as 'Mohabbetein' in the current year.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
Earnings per share*
The stock quotes at a price of Rs 425, which implies an earnings multiple of over 60 times 3QFY01 annualised earnings
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