Shemaroo had decent sales growth in FY24, they have finally started charging off inventory which will suppress their profitability in next couple of years. They are targeting debt reduction of 100 cr. in next 2-years. Concall notes below.
FY24Q4
-
Expenditure on new ventures was 10.5 cr. in this quarter (vs 1.1 cr. in Q4FY23). FY24 expenses: 81.5 cr. (vs 54 cr.). They had budgeted 75 cr. costs
-
Expenditure on new ventures will be ~50 cr. in FY25. Have significantly slowed down investments in OTT division (Shemaroo ME). Hoping to breakeven in broadcasting in 4-5 quarters
-
Change in inventory accounting:
-
Increased inventory charge off (will reduce inventory by 40-45% in next 2-years; not considering new content); this means 35-40 cr. quarterly costs.
-
Depending on certain type of content and its aging, they did 10 year charge off earlier which is now shortened to 2-10 years
-
10 cr. incremental writeoff this quarter because of change in policy (accounted in operational costs)
-
-
Reduction in debt: will reduce debt by 100 cr. in next 2-years. New business will require less investments going ahead
-
Majority of FY24 growth was driven by traditional B2B business (37.6%). Digital media grew by 11.4%
-
MarathiBana: moved it from free dish space to paid, had to completely revamp this
-
Advertising demand: FMCG is slowly coming back, yet to see recovery from e-commerce
-
Have their team in place, incremental hiring will be little
-
Shemaroo GEC channels have 7.1% of Hindi GEC viewership (vs 7.6% in FY24Q3). Their recent original shows have not done well which has reduced their viewership share
-
Debt: 338 cr. (vs 362 cr. in December 2023); had guided for debt of 290 cr. by in FY24
-
Inventory: 682 cr. (vs 727 cr. in December 2023)
-
Digital revenue breakup (63.9 cr. up 19.9% YOY)
Disclosure: Not invested (no transactions in last-30 days)
Subscribe To Our Free Newsletter |