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News |  30 Jun 2009 13:00 |  By RnMTeam

Saregama suffers Rs 80 mn loss in FY '09

MUMBAI: Saregama has reported a downturn in its performance. Revenues are down, its  balance sheet has got stained red, as the company battles in an industry which is grappling with dropping physical format sales, monetizing digital music on the mobile and online.

Its consolidated profits and loss statement shows that revenues have dropped to Rs 1320 million in the year ended March 2009 as against Rs 1500 million in the corresponding previous year period  Not just that, the company's profit before tax of Rs 98.6 million has been converted into a loss of Rs 73 million. The company has also charged Rs 15.3 million (for the year ended 31 March 2009) in its books on account of its voluntary retirement scheme which had entailed an outgo of Rs 46.1 million in the year ended March 2008.

Its music segment revenues were at Rs 980 million as against 1287.50 million last year, while its films unit notched up Rs 130 million in income. Its license fees too are on the down, from Rs 519.3 million in FY'08 to Rs 426.9 million in FY'09. However �Other operating income' has gone up drastically, from Rs 76.2 million in FY'08 to Rs 236.8 million in FY'09.

Apart from the music business, the company has in fact posted a loss in all the other segments. While music managed to save some face for the company posting a profit of Rs 242.6 million for the year ended March 31 2009, the films and television serial business posted a loss of Rs 60.1 million as compared to Rs 54.2 million the previous year, the publication wing of the company posted a loss of Rs 87.5 million.

The expenditure by Saregama on royalty has incidentally seen a sharp decrease in FY'09 as compared to FY'08. While the expenditure by the company in the fiscal year ended March 31 2009 was Rs 146.1, in the previous year, the expenditure was Rs 285.5 million. The expenditure on production of films and television serials has also seen a decrease from Rs 174.3 million to Rs 95.3 million.