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Saregama: Interest reduction boosts net

Jan 31, 2001

Saregama has reported a near tripling of net profit in the third quarter of the current year visavis 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.

(Rs m) 3QFY00 3Q FY01 Change
Sales 343 411 19.9%
Other Income 6 36 493.4%
Expenditure 322 388 20.6%
Operating Profit (EBDIT) 21 23 8.6%
Operating Profit Margin (%) 6.1% 5.5% -9.4%
Interest 14 2 -83.1%
Depreciation 5 8 41.5%
Profit before Tax 7 49 553.3%
Other Adjustments (2) (33)  
Tax 1 - -100.0%
Profit after Tax/(Loss) 5 16 207.7%
Net profit margin (%) 1.5% 3.9% 156.7%
Earnings per share* 2.21 6.9  

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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SAREGAMA Announces Quarterly Results (4QFY20); Net Profit Up 41.7% (Quarterly Result Update)

Jun 8, 2020 | Updated on Jun 8, 2020

For the quarter ended March 2020, SAREGAMA has posted a net profit of Rs 228 m (up 41.7% YoY). Sales on the other hand came in at Rs 1 bn (down 15.0% YoY). Read on for a complete analysis of SAREGAMA's quarterly results.

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