Gramophone: On the right track - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Gramophone: On the right track

Apr 10, 2000

Gramophone Company has reported a 45% growth in net profit on a 16% topline growth for the full year ended March 2000. This was primarily due to improved gross profit margins, which increased from 9% last year to 11% in the current year.

(Rs m) FY1999 FY2000 Change
Sales 1,232 1,433 16.3%
Other Income - - 0.0%
Expenditure 1,121 1,281 14.2%
Operating Profit (EBDIT) 111 153 37.7%
Operating Profit Margin (%) 9% 11%  
Interest 44 56 26.5%
Depreciation 18 24 28.8%
Profit before Tax 48 73 51.5%
Other Adjustments 6 7 20.3%
Tax 3 9 200.0%
Profit after Tax/(Loss) 39 57 44.8%
Net profit margin (%) 3.2% 4.0%  

Gramophone Company sells its music under the HMV brand name. It has a tie–up with the international major EMI, which holds around 9% of the company’s Rs 79.7 million equity. The company has a library of music rights of almost 4500 Hindi movies (including the music rights of recent blockbuster ‘Kaho Na Pyar Hai’).

During the last quarter the company has bagged the rights of two other big banner movies Yash Chopra’s ‘Mohabbatein’ and JP Dutta’s ‘Refugee’ apart from the exclusive rights of six forthcoming A. R. Rahman releases. Besides, the company also placed 0.7 m shares of the company at Rs 1785 per share (the share currently rules at Rs 1430). It’s the value of the company’s catalogue which has led to the re–rating of the share in the past.

The company is now digitising its catalogue that will make it possible for its customers to order custom made CDs either from its site or the kiosks placed at music shops. Besides, it is also exploring tie–ups with other websites to enhance its presence on the net.

A combination of valuable content and a well thought out strategy seems to have put HMV on the right track.

Equitymaster requests your view! Post a comment on "Gramophone: On the right track". Click here!


More Views on News

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.

SAREGAMA 2017-18 Annual Report Analysis (Annual Result Update)

Jan 11, 2019 | Updated on Jan 11, 2019

Here's an analysis of the annual report of SAREGAMA for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of SAREGAMA. Also includes updates on the valuation of SAREGAMA.

More Views on News

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

I Recommended this Stock over Page Industries because it's Relevant to Doubling Your Income (Profit Hunter)

Sep 7, 2020

Things are not often what they seem in the market and how you can take advantage of this.

The NASDAQ Whale Could Harm Your Portfolio (Fast Profits Daily)

Sep 7, 2020

The discovery of Softbank pushing up prices on the NASDAQ will cause volatility in the market. Stay alert!

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.


Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms


Sep 18, 2020 (Close)


  • Track your investment in SAREGAMA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks