TIPS Industries Limited has informed the Exchange about Investor Presentation
October 22, 2022
To, Listing Department BSE Limited P.J Towers, Dalal Street, Fort, Mumbai – 400 001
To, Listing Department National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra (E), Mumbai – 400 050
Scrip Code: 532375
Symbol: TIPSINDLTD
Subject: Submission of Presentation of Analysts/Investors Meeting
Dear Sir,
This is further to our letter dated October 18, 2022 on the Investor/ Analyst call scheduled on Saturday, October 22, 2022 at 11:00 a.m. (IST) and pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, we enclose herewith a copy of Investor Presentation with respect to Audited Financial Results of the Company for the quarter ended September 30, 2022.
The same shall be uploaded on our website www.tips.in
We request you to kindly take the above information on record.
Thanking you,
For Tips Industries Limited
Bijal R. Patel Company Secretary
Encl: a/a
Tips Industries Limited
Investor Presentation Q2FY23
Safe Harbor
This presentation has been prepared by and is the sole responsibility of Tips Industries Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by
the trailing restrictions.
This presentation does not constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer or recommendation to purchase or
subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or
commitment thereof. In particular, this presentation is not intended to be a prospectus or offer document under the applicable laws of any jurisdiction, including India. No
representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or
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amend this communication or to otherwise notify the recipient if the information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes
inaccurate.
Certain statements contained in this presentation that are not statements of historical fact constitute “forward-looking statements.” You can generally identify forward-looking
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“shall”, “should”, “will”, “would”, or other words or phrases of similar import. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and
other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed
or implied by such forward-looking statements or other projections. Important factors that could cause actual results, performance or achievements to differ materially include,
among others: (a) our ability to successfully implement our strategy, (b) our growth and expansion plans, (c) changes in regulatory norms applicable to the Company, (d)
technological changes, (e) investment income, (f) cash flow projections, and (g) other risks.
This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. The
Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes.
2
New Release Highlights (Click to view)
Total 228new
Songs Released in Q2FY23
88 Non-Film
songs released in Q2FY23
140 Film
songs released under Tips Originals
3
Financial Overview
Quarterly Business Performance
Revenue (Rs. in Crs)
Op. EBITDA (Rs. in Crs)
Op. EBITDA Margins (%)
Y - o - Y
+70%
49.6
29.1
+52%
27.2
17.8
-900 bps
61%
55%
Q2FY22
Q2FY23
Q2FY22
Q2FY23
Q2FY22
Q2FY23
Revenue (Rs. in Crs)
Op. EBITDA (Rs. in Crs)
Op. EBITDA Margins (%)
+45%
49.6
34.2
Q - o - QQ - o - Q
+21%
27.2
22.4
-1100 bps
66%
55%
Q1FY23
Q2FY23
Q1FY23
Q2FY23
Q1FY23
Q2FY23
5
Q2 FY23 Profit & Loss Statement
Particulars (Rs. in Crs)
Revenue From Operations
Content Cost
Employee Benefits Expenses
Other Expenses
Op. EBITDA
Op. EBITDA %
Other Income
Depreciation and Amortisation Expense
Op. EBIT
Finance Costs
PBT
Tax
PAT
PAT %
EPS
Q2FY23
Q2FY22
Y-o-Y
Q1FY23
Q-o-Q
H1FY23
H1FY22
Y-o-Y
49.6
17.2
1.8
3.4
29.1
70%
34.2
45%
7.6
1.6
2.1
126%
7.6
1.6
2.6
126%
83.8
24.8
3.5
6.0
57.2
11.5
3.1
4.4
46%
115%
27.2
17.8
52%
22.4
21%
49.6
38.2
30%
FY22
135.6
32.7
6.3
10.4
86.2
54.8%
61.3%
65.6%
59.2%
66.7%
63.6%
1.1
0.4
27.9
0.1
27.8
7.0
20.8
0.6
0.1
18.3
0.0
18.3
7.1
11.2
41.1%
37.8%
16.06
8.66
52%
52%
85%
1.0
0.4
23.1
0.1
23.0
5.9
17.2
48.7%
13.25
2.2
0.8
51.0
0.1
50.9
12.9
38.0
1.2
0.3
39.0
0.0
39.0
11.9
27.1
31%
30%
40%
3.2
0.7
88.7
0.1
88.6
24.1
64.6
21%
21%
21%
44.2%
46.4%
29.3
20.91
46.5%
49.78
6
Balance Sheet
Equity & Liabilities (₹ in Cr)
Equity Share Capital Other Equity
Total Equity
Non-Current Liabilities
Financial liabilities
(i) Lease Liabilities Deferred Tax Liabilities, (net) Employee Benefit Obligations Other Non Current Liabilities
Total Non-Current Liabilities
Current Liabilities
Financial Liabilities
(i) Lease Liabilities (ii) Trade Payables (a) total outstanding dues of micro enterprises and small enterprises (b) total outstanding dues of creditors other than micro enterprises and small enterprises (iii) Other Financial Liabilities Employee benefit Obligations Current Tax Liabilities (net) Other Current Liabilities
Sep’22
Mar’22
13.0 124.8
137.8
13.0 89.4
102.4
3.5 0.0 0.2 13.1
16.9
0.6
0.0
15.0
0.1 0.0 0.5 19.7
3.6 0.0 0.1 29.7
33.4
0.3
0.0
4.2
0.2 0.0 5.2 1.1
Total Current Liabilities
Total Equity & Liabilities
35.9
190.6
11.0
146.8
Assets (₹ in Cr)z
Sep’22
Mar’22
Property, plant and equipment
Investment Property
Non-Current Assets
Financial Assets
(i) Investments
(ii) Loans & Deposits
(iii) Other Financial Assets
Deferred Tax Assets
Other Non‐Current Assets
Total Non-Current Assets
Current Assets
Financial Assets
(i) Investments
(ii) Trade receivables
(iii) Cash and cash equivalents
(iv) Bank balances other than (ii) above
(v) Loans
(vi) Other Financial Assets
Other Current Assets
Current Tax Assets (Net)
Total Current Assets
Total Assets
6.1
0.2
0.0
0
2.9
0.4
8.0
6.3
0.2
0.0
0
3.0
0.4
8.0
17.5
17.9
9.5
20.4
20.3
74.6
0.2
11.5
32.2
4.2
5.4
17.9
22.1
39.9
0.2
8.7
30.4
4.2
173.0
190.6
128.8
146.8
7
Cash Flow Statement
Cash Flow Statement (Rs. Crs.)
Cash Flow from Operating Activities
Profit before Tax
Adjustment for Non-Operating Items
Operating Profit before Working Capital Changes
Changes in Working Capital
Cash Generated from Operations
Less: Direct Taxes paid
Net Cash from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Net increase/ (decrease) in Cash & Cash equivalent
Add : Cash and cash equivalents at the beginning of the year
Adjusted Cash and Cash Equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Sep-22
Mar-22
50.9
-1.1
49.8
6.3
56.0
-17.6
38.4
-37.6
-2.6
-1.7
22.1
0.0
20.3
88.6
-1.4
87.2
-36.0
51.2
-21.9
29.3
-27.1
-2.8
-0.6
0.0
22.7
22.1
8
Company Overview
Company Overview
Collection of over 29,000 songs across all genres and major languages
Established in 1988, Tips Industries is one of the large corporate houses in the field of music
Catalogue is licensed to
Consistent success in creating and acquiring high quality music I.P.R.
Since 1990, Tips has been amongst players with the highest number of gold and platinum discs to their credit
• OTT platforms
• Content Aggregators
• TV Channels • Telecom Companies
• Radio Stations,
• Advertisers • Event Management Companies
• Hotels, Restaurants, and Others
Hindi
Punjabi
Gujarati
Bhojpuri & many others…
Presence across platforms
Extensive Devotional, Pop, Remixes
catalogue
of
Film, Non-Film,
10
Corporate Philosophy
Our Vision To maintain and grow a MUST HAVE HITS catalogue
Our Mission To create, acquire and deliver quality music to a wide range of audiences
Our Purpose Deliver Entertainment
Our Core Values
•Honesty •Passion •Commitment •Teamwork •Positive attitude
11
Generating multiple revenue streams
Large and diversified music library Our catalogue comprises film, non-film, pop, remixes devotional songs and bhajans, created by some of the leading artistes and musicians of this country.
Rich content can be leveraged to generate multiple revenue streams via following
Sync Deals
Rich & Evergreen Catalogue Digitized catalogue comprises over 29,000 songs in multiple Indian languages and genres with new additions every year
29,000+ Songs
Digitally available
Catalogue is available on all the leading online music stores, applications, and web platforms including YouTube, Resso, Amazon Prime, JioSaavn and Facebook
Over 74.84 Mn
YouTube channel subscribers/followers
Broadcast Partners
12
Two Pronged Content Acquisition Strategy
Our endeavour is to cater to a wide range of audiences
Content Cost
Produce
Strategy
•
To introduce promising singers (TIPS) is in our DNA
• We have a strong A&R team which engages with artistes across genres and languages which allows us to present upcoming talent to our listeners.
• Our team has a deep understanding of music which allows us to create and build a repertoire of “Must Have Hits”
Purchase
Strategy
• We also engage with other producers to buy music rights to complement our repertoire
• Our understanding of music and its creative process provides us deep insights on costs and returns and therefore we remain cost always conscious while acquiring music rights
100% of Content cost is written off from profit & loss account in the quarter of release. There is no Capitalization & no pending write-offs in the future. Company has followed this policy since inception
Content acquisition cost through internal accruals
Content acquisition cost is only funded Content acquisition cost is only funded Content acquisition cost is only funded through internal accruals through internal accruals through internal accruals
is entirely funded
Strong A&R team to acquire content across languages & genres. 5 Artists signed exclusively
13
Growing listenership & Increasing Content Addition
Evergreen & Rich content of over 29,000 songs across genres, languages & decades giving us high visibility of music revenue
New Songs Added
228 New releases in Q2FY23
276
215
228
185
100
FY20
FY21
FY22
Q1FY23
Q2FY23
Existing Content + Continuous Additions : Increasing Music Revenue
YouTube Views (in. Bn)
YouTube Views (in. Bn)
+46%
38.5
59.6
+113%
20.8
27.3
12.8
15.3
15.1
16.4
19.3
26.6
FY19
FY20
FY21
FY22
Q1FY22
Q2 FY22
Q3 FY22
Q4FY22
Q1FY23
Q2FY23 14
Annexures
Music is the most valuable content
Ranking on repeated monetization
Yearly performance
Music is now an internet business
Music
Films
Web Series
TV Serials
News
Streaming
Streaming continued to grow strongly in 2021, up by 24.3% to US$16.9 billion. Paid streaming revenues rose by 21.9% and accounted for 47.3% of the global market (US$12.3 billion).
Synchronisation
Use of recorded music in advertising, film, games and TV climbed by 22.0% (US$549.1 from million) synchronization accounted for 2.1% of the global market.
Revenues
2021.
in
4.3%
19.2%
47.3%
CY2021
9.4%
2.1%
17.7%
Ad-supported streams
Physical
Synchronisation
Download & Other digital
Performance rights
that
Content monetized times commands economic value
can be multiple naturally greater
Downloads
Music ranks at the top of the content pyramid on when repeated monetization
ranked
Revenues from permanent downloads fell by 15.3% to US$839.3 million and represented just 3.2% of the global market in 2021. Other digital formats experienced growth (+6.8 %) but represent only 1.1% of global revenues
revenues
Streaming comprised 65% of total an increase of 24.3% vs 2020, for the Global Music Industry
2021,
in
*Source: IFPI GMR (2022)
16
Digital Advertising – Key Driver of Indian Music Industry
Indian Digital Ad Industry
INR Crs
• The Indian digital advertising industry stood at Rs 21,353 crore by the end of 2021, up from Rs 15,782 crore in the previous year. It has grown at a rate of 35.3%
35,809
+29%
27,759
21,353
15,782
13,683
10,859
8,202
6,228
• This sustained growth can be attributed to the technological science & analytics,
advancements, introduction of policies & regulations, among others.
improvements
data
in
• The highest proportion of spends on digital media is claimed by social media (29%, Rs 6,218 crore), closely followed by online Video (28%, Rs 5,907 crore). Paid search claims 23% (Rs 5,039 crore), while display banners claim 16% (Rs 3,420 crore).
• Social media is expected to grow with a CAGR of 29.79% to have a
spend share of 29% by 2023.
• On an average, Indians spend 2-3 hours on Social Media, which is at
par with the global average.
• 73% of the audience belonging to the age group of 45 years to 54
years use YouTube to watch online content.
2016
2017
2018
2019
2020
2021
2022f
2023f
Source: Dentsu Aegis Network Report 2022
17
Growing Digital Ad spend
Advertising spends on different media (Rs. Crore)
Advertising spends across various media (%) - Forecast
The current pie of digital ad spends constitutes 30% of the advertising spends in 2021, and moving forward in 2022 and 2023, the percentage is expected to increase to 34% and 38% respectively.
Source: Dentsu Aegis Network Report 2022
18
Few Industry Reports
dentsu – Digital Advertising in India
IFPI – Global Music Report
Click Here
Click Here
FICCI – EY Media & Entertainment
Report 2022
Click Here
Ericsson Mobility Report
Click Here
19
Thank You
Company Details:
Tips Industries Limited
CIN: L92120MH1996PLC099359
Email id: investorrelations@tips.in
Investor Relations Advisors:
Orientcapital (a division of Link Intime India Pvt Ltd)
Mr. Faraz Ahmed : +91 9619705150 faraz.ahmed@linkintime.co.in
Mr. Rajesh Agrawal : +91 9967491495 rajesh.agrawal@linkintime.co.in