Saregama India Limited — Investor Meet, 14-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Financial Performance: Saregama India Limited's Q3FY25 operating revenues reached INR 483 crores with a profit before tax (PBT) of INR 84 crores, demonstrating substantial growth that exceeded their initial guidance of a 30% revenue increase for FY25. Adjusted EBITDA rose 25% YoY, although 58% of this revenue came from live events, a low-margin business, resulting in an adjusted EBITDA margin of 21%. Excluding events, the EBITDA stood at a healthy 40%.

Future Outlook and Growth Drivers: Management is optimistic about the music licensing and artist management segments, anticipating a growth rate of 22%-23% CAGR over the medium term. They are significantly investing in new content, projecting over INR 1,000 crores in total from FY25 to FY27, to boost the company's market share and appeal to younger demographics.

Order Book and Operational Updates: The artist management segment now manages around 200 artists and expects to double the music licensing vertical's revenue in three to three-and-a-half years. Successful content releases, including music for high-profile films, are strengthening their market position.

Analyst Q&A Insights: Analysts raised concerns about the slower growth of pure music licensing, which grew by 12% YoY, but management clarified the interconnectedness with artist management. Operational challenges include adjusting to recent platform closures, but management remains confident in the transition to paid audio services in India.

Market or Regulatory Updates: The ongoing shift from free platforms to paid subscription services is expected to benefit Saregama, aligning with increasing digital consumption trends.

Strategic Focus Areas: Key themes include diversifying content creation across genres and investing in experiential live events to capture growing consumer interest.

Investor Insight: With Saregama's robust growth trajectory, commitment to content investment, and strategic diversification, there's positive sentiment towards its long-term value, suggesting a favorable outlook for potential investors.