Key highlights from TIPS Industries Limited (TIPSINDLTD) Q4 FY22 Earnings Concall
Q&A Highlights:
- Sagar Jethwani of Phillip Capital asked when a higher share of movie songs can be seen. Kumar Taurani MD replied that movies really command a tremendous amount in volume for TIPS. On new movies, the company is acquiring new music for movie rights even in other languages.
- Sagar Jethwani of Phillip Capital also asked that between the film, non-film and devotional songs, which is the most profitable category. Kumar Taurani MD answered that the company’s target is to recover its investment in first three years.
- Swechha Jain from ANS Wealth asked about revenue growth being 23% YoY in 4Q, but in 3Q it was 43% YoY and the outlook ahead. Kumar Taurani MD said that in 3Q, the company had a bigger deal and Dec. is a seasoned quarter. The company added that this metric should be gauged on a YoY basis.
- Swechha Jain from ANS Wealth asked about the YouTube viewership in 4Q22. Kumar Taurani MD answered that it happens all the time, there will be highs and lows in each quarter due to various reasons.
- Swechha Jain from ANS Wealth also asked if the revenue from YouTube is mainly led by advertisement or subscription based growth. Kumar Taurani MD answered that 80-85% is ad driven growth. Subscription is still not what the company expects, which might take another 2-3 years to grow.
- Garvit Goyal of Invest Research enquired if there is any traction in the music consumption post COVID vs. COVID time. Kumar Taurani MD replied that during COVID, music consumption increased but advertisers decreased, which was a hit on revenue. Post COVID, the revenue recovered and after 2Q 2020 it’s really good.
- Garvit Goyal of Invest Research asked about the company’s existing market share. Kumar Taurani MD said that existing market share combining all the revenue streams, it should be around 6-7%.
- Garvit Goyal of Invest Research asked about revenue and EBITDA margin guidance for FY23. Kumar Taurani MD replied that the company is targeting every year on a YonY basis, 25-30% on topline and bottom line should be 15-20% up. In FY23, TIPSINDLTD has a huge content acquisition budget also.
- Devanshu Sampat with Yes Securities asked about the revenue of public performance fees in FY22. Kumar Taurani MD answered that public performance was good, but the exact number cannot be revealed. Compared to pre-COVID levels, the company is 60% more.
- Akshay Sam from SAM Capital asked what is the pipeline in film’s music over the next 1 year and how many releases can be anticipated in the music segment. Kumar Taurani MD answered that the company has acquired a movie of Balaji Telefilms. And talks are on with 2-3 more producers. The target is to release 3-4 films on a YonY basis in Hindi. So all the languages put together it will be around 25-30 films a year.
- Abhilasha Satale from Monarch Network asked about the confidence the company has on payback period of 3 years not increasing with content cost increasing globally. Kumar Taurani MD said the company has a strong old rapport and it’s increasing day by day. And TIPS added that it’s a very focused company which helps in confidence.
- Aman Vij of Astute Investment Management asked about the song addition planned for FY23 and how many will be acquired vs. own songs. Kumar Taurani MD answered that the company’s target is to release around 400 songs for FY23. And acquired vs. own songs will be 40% acquired and 60% own.
- Aman Vij of Astute Investment Management enquired about the total partners the company has. Kumar Taurani MD replied that total partners is around 35-40.