Tips Industries Limited – Ready to RACE ahead!

Excerpts from the concall.

1. Guidance is conservative as always, ~30% though it might probably be elevated for FY25 looking at Q1 results.
2. Count of songs released: in Q1, ~100. Target for FY25 is 300. This number was around 900 for FY24 and 700 for FY23.
3. Content costs target for FY25 is 80Cr. This number was 55.6 in FY24 and 62.4 in FY23. Essentially back to 30% YoY (from FY23 number) in line with topline guidance.

Overall, yes, partially agree that there might some more room for peak valuations. There also appear to be enough avenues for growth in coming quarters to sustain the added content cost jump. My take is we might see time correction if this doesn’t align. That will allow earnings to catch up to valuations.

Disc: Not invested, tracking.