Tips Industries Limited – Ready to RACE ahead!

Q3 FY 24 Concall summary

BUSINESS

• Revenue of INR64.8 crores for Q3 FY ’24.
• YouTube subscribers collectively have reached 93 million across all our channels.
• recorded 47 billion YouTube views, reflecting a 52% growth because of Shorts.
• songs released this quarter are 165, of which 82 were film songs and 83 were non-film songs.
• Profit after tax for Q3 FY ‘24 stood at INR34.7 crores versus INR20.2 crores in Q3 FY ’23. That is a growth of 72%. PAT margins for the quarter was 53.5%.
• Content cost for the quarter was INR14.7 crores.
• digital business is around 75%, 76%.
• We have a good pipeline of Ishq Vishk, Buckingham Murders, The Crew.
• Our industry is around INR2,800 crores-odd. three years to five years, this industry has potential to grow INR10,000 crores, INR12,000 crores.
• Even. one song or one promo will be released, we write-off 100% in that same quarter.
• Digital is 75%, 76%. And non- digital, which is live performances, TV, sync rights, all those are 24%, 25%.
• YouTube Shorts is a fixed fee deal.
• YouTube is 45% to 50% of our total business, top line.

MANAGEMENT GUIDANCE

• 100- 125 will be released in Q4.
• Top line 30% and bottom line 30%.
• Meta reels good news to be expected soon.
• 40% – 35% of content we will acquire from Tips Films. And 30%, 35% content we will acquire from outside. And 25% we will create on our own.

RISK

• The promoters have sold around 6% stake in Tips Industries to grow our film production business.
• Promote may sell more stake to fund Tips films.
• Content acquisition is very tough, particular content deserves INR5 crores, people are offering INR15 crores, INR18 crores. So, we are not following that path and we are not bidding anything.