Saregama India's revenues for Q2FY21 fell 31.3% YoY to | 108.1 crore as Carvaan sales declined to 81,000 units vs. 250,000 in Q2FY20. EBITDA, however, was at | 36.9 crore, up 52.3% YoY, due to lower promotion costs (high marketing expense in base quarter) and contract manufacturing...

Saregama India's revenues for Q1FY21 fell 39.2% YoY to | 76.5 crore due to Carvaan sales declining to 15,000 units vs. 219,000 in Q1FY20 as retail stores were shut during lockdown. EBITDA came in at | 18.9 crore, up ~16x YoY, due to lower promotion costs (high marketing expense in base quarter) and reduced production costs and contract manufacturing charges with EBITDA...

Saregama India's topline for Q4FY20 declined 14.3% YoY to | 108.7 crore as Carvaan sales fell to 74,000 units in Q4FY20 vs. 214,000 in Q4FY19, mainly due to no corporate buying and lockdown impact in March. EBITDA came in at | 21.5 crore, up 32% YoY, due to lower contract manufacturing charges & marketing costs. EBITDA margins at 19.8% were up 690 bps YoY....

Encouraging Caravan Music Sales Outlook; IP Monetisation Continues We had an interaction recently with Mr. Vikram Mehra (MD) and Mr. Vineet Garg (CFO) of Saregama India (SIL) during the Institutional Equities Conference hosted by us last week. During the presentation, the management of SIL sounded confident of meeting the targeted sales of 750,000 Caravan music sets during the year. The management stressed that the opportunity size is 25mn sets across India. The company continues to monetise intellectual property (IP) rights of major Bollywood songs from the 1980's era....

The company mentioned that Carvaan has been positioned as a gift product' with target audience of 40+ age group. It further said the device has achieved immense success in a short duration due to its correct market positioning. The company sold 387,000 Carvaan devices in FY18 even before commercial advertisement started and guided for 750,000+ device sale in FY19 including all its variants. It is also looking to tap international markets on domestic success of the device and launched the device in the UK at a price point of 120, followed by its launch in US...

We met the management of Saregama India, a custodian of ~1.17 lakh digital tracks and regarded as the premier music destination for South Asian music, predominantly consisting of old songs. Over the years, it has...