Saregama reports 9% YOY revenue growth in Q1:19-20
The company registered 34% growth in Q1 FY20 in Carvaan units YOY basis
Saregama announced its financial results for the 1st Quarter ended June 30. The company’s revenues went up by 9% on YOY basis.
The company launched two new products in the first quarter Carvaan Go – the mobile variant targeted at 35-60yrs segment and Carvaan 2.0 – the new age variant supporting both music and wifi based podcasts broadening Carvaan’s appeal to all members of households.
The company registered 34% growth in Q1 FY20 in Carvaan units YOY basis, this is despite falling store footfalls and suppressed demand in almost all categories.
In Q1 of FY'19-20 the company registered sale of 219K units of Carvaan.
The focus this quarter was to expand Carvaan’s footprint outside top 10 towns through targeted marketing campaigns, dealer network and sales manpower expansion in these areas.
The net result was that the sales contribution of outside top 10 towns went from 39% in Q4’18-19 to 43% in Q1’19-20.
To promote pull for Carvaan demand in outside top 10 towns, the company has started focused investment in advertisement campaigns. In addition, the company is also investing in building deeper sales structure in these areas.
This has created little impact on the profitability and company reported PBT of Rs 20 Mn in Q1 FY20 standalone basis.
The company has also started publishing consolidated results from this quarter onward and it reported near breakeven results in Q1 FY19 to Rs 2.3 mn.
As part of structural change company has decided to convert all existing SAR to ESOP.
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