Basilic Fly Studio Ltd

Though hunter, already put notes for concall.
Observed it is available on screener. Very cool feature and helpful, as concall is my place to understand company. Thanks ayushmit.

Concall Notes – Nov 2023

Financial Performance:

• In H1 FY2024, achieved a total income of 49.89 Crores, EBITDA of 24.07 Crores, and a net profit of 18.93 Crores
• Positive outlook for H2 FY2024 and the future, driven by performance, IPO proceeds, and project pipeline
• Aiming for 60-70% growth in top line and 30% PAT margin for FY2024
• Operating margins expected to stay above 45% going forward

Expansion and Facilities:

• Planning to establish two new dedicated facilities in India
• Expanding international markets in Europe and Australia
• Expect to double team strength to 800-1000 members in the next year
• Utilizing IPO proceeds for new facilities, no need for debt

New Projects and Collaborations:

• Actively exploring opportunities in kids entertainment and fostering new collaborations
• Incorporating AI tools to reduce roto work and focusing on software development for automation
• Testing tool called copycat that can replicate shots with similar shapes
• Worked on project called LEO, contributing to fire shots, fireworks, and aging effects
• Strong relationships with major production networks like Marvel, Warner, Apple, and Paramount Plus
• Bigger projects lined up for the future, involving global teams and starting from pre-production stages

Order Book and Project Pipeline:

• Order book includes projects ranging from 4 to 6 Crores in size
• Working on projects for the next 6-7 months, with additional projects in the pipeline
• Focused on expanding relationships with content platforms and production studios

Company Overview:

• Leading visual effects studio headquartered in Chennai, India
• Specialize in creating visual experiences for movies, TV shows, web series, and commercials
• Team of 500+ members operating from offices in India, London, and Vancouver
• Secured listing on the NSE emerged platform
• Despite industry challenges, managed to grow and expand workforce to meet demand
• Canadian subsidiary achieved break-even numbers
• Appointed key senior positions to enhance capabilities
• No bad debts in business
• Constantly recruiting and expanding team in India, London, and LA
• Strong track record of trade negotiations with clients resulting in advances and timely payments

Disclosure: 9% of Portfolio, highly biased.