Key highlights from TIPS Industries Limited (TIPSINDLTD) Q1 FY23 Earnings Concall
Management Update:
- TIPSINDLTD said that in 1Q23 the company released 185 new songs, the highest in any quarter so far.
Q&A Highlights:
- Rakesh Wadhwani from Monarch Networth enquired about the approx. content cost for FY23 and FY24. Kumar Taurani MD replied that the exact numbers cannot be given, but it will be huge amount, about double of FY22.
- Ankush Agrawal of Surge Capital asked if the company has had any talks with Facebook on deal renewal. Kumar Taurani MD said that it’s not happened but Facebook has to decide the ad revenue sharing model worldwide. However, the usage of content in the platform is very well.
- Vishal Bagaria from Roha Asset asked about revenue not growing QonQ proportionate to YouTube viewership growth. Girish Taurani ED replied that it’s because the YouTube CPMs have gone down a little bit in 1Q23. However, compared to others TIPS is doing well and kept it in line with 4Q22.
- Vishal Agarwal with Leo Capital asked about margin outlook for next 2-3 years. Kumar Taurani MD answered that margins will be little less; should be probably 15%. Revenue will grow by 25-30% and margins by 15-20% YonY.
- Vishal Agarwal with Leo Capital also enquired that of this revenue growth of 25-30%, how much will come from the existing catalogue and how much from new. Kumar Taurani MD clarified that new releases will contribute to 25% and catalogue would be 5-10% more YonY.
- Vishal Agarwal with Leo Capital asked that from a revenue contribution perspective, how much comes from YouTube and streaming platform. Kumar Taurani MD answered hat 75-78% comes from total digital pie; 50% YouTube and 25-28% ex-YouTube.
- Saket Mehrotra from Tusk Investments asked about the timeline for the listing of the films business. Kumar Taurani MD said that it will happen within the next 10-15 days.