Horrible quarter for the co, sales only grew by 4% and they had invested massively in hope of advertising growth resulting in operating losses of 18 cr. this quarter. Business remains highly unpredictable even for the management. Concall notes below.

FY24Q3

• Expenditure on new ventures was 28.4 cr. in this quarter (vs 22 cr. in Q3FY23). Large part was towards TV broadcasting business

• Shemaroo GEC channels have 7.6% of Hindi GEC viewership (vs 7.4% in FY24Q2)

• Advertising demand remains subdued due to rural slowdown, slowdown in new age startup funding, and world cup taking up a large part of ad pie. Planned investments in content, people and marketing pressurized margins. Have started cost rationalization measures

• Shift towards professionalization of company and hiring has peaked out and dont foresee any big jump in employee costs

• Expect digital viewership to improve, but its monetization is something that they are not confident about in next 1-2 quarter

• Have embarked on an aggressive plan of international syndication (buying and selling content it global markets)

• Debt : 362 cr. (vs 324 cr. in September 2023)

• Inventory : 727 cr. (vs 738 cr. in September 2023)

• Digital revenue breakup (65.2 cr. up 8.2% YOY)

Disclosure: Invested (position size here, no transactions in last-30 days)

If things play out for the newly acquired hospital as they are currently executing, when the occupancy reaches around 80% they can achieve a 32% returns on the acquired hospital, assumption of Rs25000 ARPOB is reasonable I think, however need to hear from the call tomorrow.

also , most multispecialty hospitals have seen tailwind of covid, may be because some surgeries were may be on hold because of covid, so need to watch if thats the case or is there a secular trend in organized hospitals growth…

@praveen_potnuru KPIT majorly focusses on Automotive software and it’s definitely not a peer to Mold tech.
TAAL deals with Engg design services and one vertical of Axiscades also focussess on mechanical design. Don’t you think these are comparable peers to Mold tech?

Positive inventory means that there is a decrease in inventory amount. The amount is reported as positive because reducing inventory usually has a positive impact on the cash balance of a company. When we think about how to evaluate and monitor inventory in a business, we should look at it from two perspectives:

1. Impact on cash: The first perspective is how much cash is tied up in inventory and how long is that cash being tied up. As a general rule, the lower the inventory balance and the less time we hold that inventory before selling it the better. The focus here is on the time from purchase from the vendor to sale to the customer.
2. Impact on profitability: The second perspective relates to the impact inventory has on overall profitability as well as the many pitfalls associated with how inventory is accounted for.

Any update?? What is happening in the company?