Another good quarter in terms of sales, margins will continue to remain elusive for the foreseeable future. Concall notes below
FY24Q1
- Expenditure on new ventures was 12.5 cr. in this quarter (vs 14.4 cr. in Q1FY23)
- Traditional and digital platforms experiencing decline in viewership due to availability of IPL for free on digital along with record viewership on linear television
- Shemaroo GEC channels have 7% of Hindi GEC viewership (reduced from 9%)
- Launched forth TV channel ‘Chumbak TV’ in May 2023 where monetization commenced in July 2023
- Current focus is on scalability and gaining market share and not so much on margins. Broadcasting is a high operating leverage business and there will be good margins available at scale
- Advertising demand will remain muted in Q2FY24, this coupled with continued investments in B2C initiatives will keep margins under pressure
- Debt has peaked and is expected to reduce in FY24
- Debt: 341 cr. vs 313 cr. in March 2023
- Inventory: 723 cr. vs 735 cr. in March 2023
- Have invested significantly on employee front, with very senior hiring. Employee costs should increase to 115-120 cr. in FY24 (vs 85 cr. in FY23)
Digital revenue breakup (57.5 cr.):
- Youtube + Facebook > 60% (34.5 cr.+)
- Telco: 10% (5.7 cr.)
- Syndication & ShemarooMe (remainder): 17 cr.
Disclosure: Invested (position size here, no transactions in last-30 days)