Saregama India's ad spendings up by 27% to Rs 24.25 crore YoY; Net profit declines by 14%

Saregama India Ltd increased the consolidated spending on advertising and sales promotions by 27.3% to Rs 24.25 crore YoY in the first quarter of FY25. In the June quarter, the company scaled down its expenses on ads by 9% on QoQ basis. The company spent Rs 26.6 crore between January and March of FY24.

The music label company's consolidated net profit declined by 14.3% to Rs 37.09 crore between April and June FY25 from Rs 43.32 crore in the same quarter of FY24.

Saregama Ltd posted a revenue of Rs 205.28 crore in Q1 FY25 (April-June), up from Rs 163.34 crore YoY. Among the key segments, music accounted for Rs 142 crore in the company's revenue.

On a standalone basis, Saregama Ltd, revenue for the Q1 FY stood at Rs 173 crore (approx). The company's consolidated net profit declined by 13.8% to Rs 37.3 crore in Q1 FY25 as against Rs 43.3 crore in the same quarter in FY24.

According to the RPSG Group company, the April-June quarter saw the release of the chartbuster song “Tauba Tauba” from the movie “Bad Newz” which topped every possible chart in the country, including Spotify, YouTube, Wynk, Radio, etc.

As per the stock filings, Saregama releases more than 330 released 330 plus Originals and Premium Recreations across Hindi, Bhojpuri, Gujarati, Punjabi, Tamil, Telugu, Malayalam, Marathi and Bengali languages.

"FY25 has begun on a strong note with our new music release topping charts across different platforms and Punjabi films also getting an excellent response from the viewers. Diversification also gained momentum with successful live events and the launch of a third Saregama talent. We have another exciting fiscal year coming up Expect the company to gain new heights," Avarna Jain, Vice Chairperson Saregama India said.

Shares of the Saregama Ltd declined on the National Stock Exchange (NSE) by 1.88% to Rs 525.90 at 3 pm on Friday.