RadioandMusic
| 25 Aug 2019
Q1-2016: Tips corporate expense, film production and finance cost pull down audio production operating profit

BENGALURU: Tips Industries Limited (Tips) reported a loss of Rs 0.62 crore for the quarter ended 30June, 2015 (Q1-2016, current quarter). The company’s audio production sales/income segment reported an operating profit of Rs 7.62 crore on revenues of Rs 8.86 crore for the current quarter which was wiped out by unallocable corporate expenses net of unallocable corporate income to the extent of Rs 1.85 crore, by the company’s film production segment that reported operating loss of Rs 3 crore on nil revenue and by finance costs of Rs 3.39 crore.

All of Tips revenue or Total Income from Operations (TIO) in the current quarter came from its Audio Visual sales/income segment. The company reported TIO of Rs 8.86 crore in Q1-2016 which was 8.6 percent more than the Rs 8.16 crore in Q1-2015, but was 13.2 percent lower than the Rs 10.21 crore in the immediate trailing quarter Q4-2015.

As mentioned above, the company reported a much higher loss of Rs 0.62 crore in Q1-2016 as compared to a loss of Rs 0.08 crore in the corresponding year ago quarter Q1-2015, but was about one-twelfth the loss of Rs 7.67 crore in Q4-2015.

The company’s simple EBIDTA calculated without considering other income in the current quarter was 17.6 percent more at Rs 2.97 crore (33.5 percent margin) as compared to the Rs 2.52 crore (30.9 percent margin) in Q1-2015. For Q4-2015, Tips reported a negative EBIDTA of Rs 6.64 crore.

The company’s Total Expenses in the current quarter increased by 3 percent to Rs 6.33 crore (71.4 percent of TIO) as compared to the Rs 6.10 crore (74.8 percent of TIO), but declined to almost a third (declined by 63.4 percent) of the Rs 17.28 crore (138.9 percent of TIO) in Q4-2015.

Tips cost of production/distribution of films in Q1-2016 increased 30.7 percent to Rs 2.58 crore (29.1 percent of TIO) as compared to the Rs 1.97 crore (24.2 percent of TIO) in Q1-2015, but was a little more than one-fifth (1/4.7 times) the Rs 12.01 crore (117.6 percent of TIO) in the immediate trailing quarter.

As mentioned above the company’s finance costs in Q1-2016 was Rs 3.39 crore (38.2 percent of TIO), which was 33.4 percent more than the Rs 2.54 crore (31.1 percent of TIO) in Q1-2015 and was 8.5 percent more than the Rs 3.12 crore (30.6 percent of TIO) in Q4-2015.

Tips Film production and distribution segment reported a loss of Rs 3 crore on nil revenue in Q1-2016, loss of Rs 2.37 crore on revenue of Rs 0.08 crore in Q1-2015 and a loss of Rs 12.43 crore on revenue of Rs 0.05 crore in Q4-2015.

Employee Benefit Expense in the current quarter at Rs 1.42 crore (16 percent of TIO) was 5.2 percent more than the Rs 1.35 crore (16.5 percent of TIO) in the corresponding year ago quarter and was almost flat (down by 0.5 percent) as compared to the Rs 1.43 crore (14 percent of TIO) in the immediate trailing quarter.

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