Management to meet on 19th aug to consider Fund raising.

Interesting deviation. Acquisition on the cards? As far as I understand, they don’t really need additional funds to expand the current business

3 inputs:

1. If one just googles ‘used laptops’, this company does not appear in search ( cashify,amazon,olx happen to be there)
2. Apart from online competition, these guys are competing with small computer shops across the country. Advantage with small shops is that you’ve a face behind the sale. This also helps in faster repair if you find a problem with the product you purchased.
3. Only path to survival and growth for this compay is to create a big brand (needs huge money) as well as to have offline stores ( but it would depend upon the TAM)

Are you spokesperson or “related parties” to the company?

Q1_2025 concall takeaway (Source: Screener note)

Financial Performance:

• Q1 FY25 operating revenue stood at ₹205 crores, representing a 26% year-on-year increase.
• Profit Before Tax (PBT) was reported at ₹51 crores.
• EBITDA increased by 9%, maintaining 33% of revenue, aligning with guidance for adjusted EBITDA.

Music Segment Insights:

• Music segment revenue showed a decline primarily due to the scaling down of Carvaan.
• Management reassured that music revenue, combining music and artist management, is on track for 25%-26% growth in FY25.
• Major releases included “Tauba Tauba” from “Bad Newz,” which topped multiple charts, including global YouTube and Spotify.
• A total of 330+ original and premium recreation songs were released across various languages.
• Upcoming releases include music from high-profile films such as “Stree 2,” “Jigra,” and more.

Artist Management:

• Over 150 influencers and music artists are now part of the portfolio, collectively boasting over 100 million followers.
• Artist management is expected to contribute significantly to revenue, with a target of 25%-30% growth in new music releases over the next 3-3.5 years.

Content Investment Strategy:

• The company is in a transitional phase, increasing content investment by 48% year-on-year.
• Long-term strategy includes investing over ₹1,000 crores in new music content over the next 3 years.
• Emphasis on a 5-year payback period for content investments, with the expectation of significant long-term returns.

Video and Event Segments:

• The video vertical is expected to grow at a CAGR of 25% over the next 5 years, driven by increased smartphone ownership and affordable data.
• The events business, while low margin, is projected to yield high Internal Rate of Return (IRR) due to short capital lock-in periods.
• Notable events include the successful “Dil Luminati” tour in North America.

Carvaan Strategy:

• Revised retail strategy focuses on e-commerce and modern trade, leading to a significant drop in Carvaan revenue to ₹24.7 crores compared to Q1 FY24.
• The management expects improved profitability margins as costs associated with physical distribution are reduced.

Industry Trends and Challenges:

• Transition from free streaming to paid subscriptions is anticipated to enhance revenue realization.
• The management believes that piracy is declining in major cities, with a significant portion of users likely to migrate to paid platforms.
• Management remains optimistic about the future, projecting a consolidated revenue CAGR of 30% and doubling PBT over the next 3-4 years.

Guidance and Outlook:

• The management maintains a guidance of 32%-33% adjusted EBITDA and a minimum of 26% growth in music revenue for FY25.
• Confidence in achieving long-term growth while maintaining profitability, despite initial investments in new content.

Disc :Invested