Tips Films Limited has informed the Exchange about Investor Presentation
May 29, 2023
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: 543614
Symbol: TIPSFILMS
Subject: Submission of Presentation of Analysts/Investors Meeting
Dear Sir,
Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, we enclose herewith a copy of Investor Presentation with respect to the Audited Financial Results of the Company for quarter and year ended March 31, 2023.
The same shall be uploaded on our website https://tipsfilms.in/
We request you to kindly take the above information on record.
Thanking you,
For Tips Films Limited
Vinit K. Bhanushali Company Secretary
Encl: a/a
TIPS FILMS LTD. 501, Durga Chambers, 5th Floor, Linking Road, Khar (West), Mumbai 400052 Tel : 022- 6643 1188 Email : info@tipsfilms.in Website : www.tipsfilms.in CIN: U74940MH2009PTC193028
TIPS Films Ltd.
Investor Presentation - Q4 & FY23
Safe Harbor
This presentation has been prepared by and is the sole responsibility of Tips Films 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
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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.
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Perpetual IPR of 50 movies
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Project Pipeline and Star cast
Merry Christmas
Ishq -Vishq Rebound
Sridevi Prasanna
Vijay Sethupathi
Rohit Saraf
Sai Tamhankar
Siddharth Chandekar
Vishal Modhave (Director)
Pashmina Roshan
Jibraan Khan
Aditi Moghe (Writer)
Amitraj (Music)
Katrina Kaif
Upcoming movies
Pritam
Movie being dubbed in 5 languages
Soulmates
Motha Maanus (Nilu Phule Biopic)
Kolhapur To Pattaya (Tentative Title)
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Milestones in our History
The Beginning
For its first 5 films, the company partnered with established film makers to learn the { nuances of film making.
Experiments & Inferences
As we started producing our own films we experimented with various distribution models.
Through careful observation of the industry and our own projects, we have derived a nuanced understanding of the business and gained a pulse of the audience.
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Tips Becomes largest movie production Studio in India
Largest Production Studio
National Recognition
With this experience and knowledge of the industry Tips went from strength to strength with the success of it films and music and became the largest movie production studio in India.
On the back of our successes we launched 10 films at one go. And signed super stars like, Govinda, Anil Kapoor, Salman Khan, Ajay Devgan, Akshay Kumar, Sunny Deol, Sanjay Dutt, Sunil Shetty, Saif Ali Khan, Bobby Deol, Preita Zinta, Aishwarya Rai, Karishma Kapoor, Tabu, Twinkle Khanna, Manisha Koirala, Urmila Matondkar, Namrata Shirodkar.
For direction we signed David Dhawan, Abbas Mastaan, Milan Luthria, Kundan Shah, Deepak Sareen.
Eventually, due to unforeseen circumstances we produced only 6 of these 10 films. Despite extenuating circumstances we completed all 6 films which were on the floor without delay. 4 of these 6 became super hit.
Our Film making prowess was recognized at the national level with our film, The Legend of Bhagat Singh, winnig 3 National Awards for Best Film, Best Director and Best Actor
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Milestones in our History
Multiple Star cast Blockbuster
High TRP on Satellite Channel
Films Capable of Multiple Sequels
In 2008, we successfully reintroduced the our cast model star multiple blockbuster movie – Race
through
it has Race’s success has been such that become a brand name, and we are working on the 4th film in the Race series.
Our 2013 production, Ramaiya Vasta Vaiya is currently rated amongst top 5 movies on satellite channels on basis of TRP ratings.
In our journey of producing ~50 films, we have launched several talented actors and directors. Shahid Kapoor, Preity Zinta, Amrita Rao, Kookie Gulati, Milan Luthria, Ken Ghosh are some of the names that we are proud of.
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Revenue Streams for Movies
Digital Rights
Satellite Rights
Music Rights
Box Office Collections
A well made film generates revenues for perpetuity; Box Office is not the only arbiter of a film’s fate
Digital rights is a new stream
of revenue that has stabilised
the film production business
Films generate revenue for perpetuity.
Music rights sold to Tips
Industries Ltd. will be at arms
length pricing
Dependence on Box office
collection is reducing.
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Film Monetization Avenues and Market Size
Film revenue mix estimates by 2025
OTT/Digital Rights changing dynamics
(Rs. Bn)
172
228
Domestic Rights
61%
60%
Overseas Rights
Broadcast Rights
9%
6%
Digital / OTT Rights
21%
In-Cinema ad
3% 2022
11%
5%
20%
4%
2025E
• Total Film Industry Revenue was Rs. 172bn compared to Rs 93bn in 2021. Gross Box office collections crossed Rs. 100bn in CY2022, only the second time in history.
• The “cinema experience” is something that is cherished by every movie enthusiast and remains the largest monetization avenue for Movies.
• 1,623 movies were released this year across languages, which is 9%
higher than 2019 levels.
• Over 75 films released directly on streaming platforms, a trend that continues even after theaters opening. Digital rights market was close to Rs. 36bn in 2022.
• OTT/Digital rights market size has almost doubled between 2019 and 2022. Going forward the share of OTT/Digital rights as a share of total revenue will remain stable.
Note : Films also earn from sale of music rights, which is not captured in the industry numbers here. Company estimates the size of music rights market to be around Rs. 8-10bn* per annum.
Source : EY-FICCI M&E Report 2023; *Company estimates
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Estimated Revenue Mix for Tips Films’ Releases
Revenue mix estimate
15%
30%
30%
15%
10%
Music Rights Digital Rights Overseas Theatrical Rights Satellite Rights Domestic Theatrical Rights
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OTT Platforms in India
Video subscription revenues grew 27% in
2022 to reach Rs. 68 billion in revenue
with 99 million paid subscribers. This is
over 60% of broadcasters’ share of TV
subscription revenues!
Source : EY-FICCI M&E Report 2023
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Films Don’t Fail… Budgets Do!
Understanding
the
monetization
potential of a story and pairing it with
the right cast and execution team is the
essence of successful film making.
Budgeting is effective when a film’s
revenue
potential
determines
the
choice of cast and execution team.
1. Script Breakdown
TFL limits risk of
loss by producing
small and mid budget films.
For
large budget
films, TFL has
Budgeting Process
Tips Films Ltd. Accounting Policy
Tips Films Ltd will write off 100%
of the cost of the movie within 12
months of release.
2. Production Budgeting
Earlier 60% was written off in the
first year, and the remaining over
9 years.
TFL’s success ratio is over 85%. This is because
we continue to monetize films long after their
developed a partnership model where it
3. Pre-Production
Box-Office releases.
partners with
actors
and
other
producers on revenue sharing basis and
thereby limits risk.
We own IPR of around 50 films in perpetuity
and expect this library to generate substantial
Free Cash Flow in the medium term.
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Quarterly Financial Performance
Particulars (Rs. in Crs)
Revenue From Operations
Cost of Production / Distribution
Employee Benefits Expenses
Other Expenses
Other Income
Depreciation and Amortisation Expense
EBIT
Finance Costs
PBT
Tax
PAT
PAT %
EPS
Q4FY23
31.7
27.6
0.9
1.3
0.4
0.1
2.3
0.7
1.5
-1.2
2.7
8.6%
6.28
Q3FY23
12.6
Q-o-Q
152%
0.0
0.9
1.2
0.3
0.1
10.7
0.5
10.2
3.00
7.2
58.0%
16.76
-78.9%
-85.0%
-62.5%
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Profit & Loss Statement
Particulars (Rs. in Crs)
Revenue From Operations
Cost of Production / Distribution
Employee Benefits Expenses
Other Expenses
Other Income
Depreciation and Amortisation Expense
EBIT
Finance Costs
PBT
Tax
PAT
PAT %
EPS
FY23
61.4
29.1
3.3
5.0
10.1
0.5
33.6
1.6
32.0
7.7
24.3
39.6%
56.3
FY22
66.8
55.4
3.1
4.9
6.6
0.5
9.5
0.0
9.5
2.5
7.0
10.4%
16.1
Y-o-Y
-8.1%
254.1%
237.5%
250.0%
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Balance Sheet
Equity & Liabilities (₹ in Cr)
Equity Share Capital Other Equity
Total Equity Loans Deferred Tax Liabilities, (net) Employee Benefit Obligations Other Non Current Liabilities
Total Non ‐ Current Liabilities
Financial Liabilities Loans
Trade Payables
Total outstanding dues of micro enterprises and small enterprises Total outstanding dues of creditors other than micro enterprises and small enterprises
Other Financial Liabilities Employee benefit Obligations Current Tax Liabilities (net) Other Current Liabilities
Total Current Liabilities
Total Equity and Liabilities
Mar’23 Mar’22 4.3 63.4
4.3 87.6
91.9
67.7
5.5 2.3 0.4
8.2
12.1
0.0
9.0
0.0 0.0 8.0 15.7 44.8
144.9
0.0 2.6 0.3
2.9
0.0
0.0
5.3
9.2 0.0 2.8 0.0 17.3
87.9
Assets (₹ in Cr)
Mar’23 Mar’22
Non- Current Assets
Property, plant and equipment
Investment Property
Other Financial Assets
Other Non‐Current Assets
Total Non ‐ Current Assets
Current Assets
Financial Assets
Investments
Trade receivables
Cash and cash equivalents
Bank balances other than (ii) above
Loans
Other Financial Assets
Other Current Assets
Current Tax Assets (Net)
Total Current Assets
TOTAL ASSETS
1.0
11.8
0.2
12.3
25.3
0.0
21.0
3.1
5.3
0.0
2.6
79.4
8.2
119.6
144.9
1.1
12.1
0.2
9.3
22.7
0.2
0.0
4.7
14.3
0.0
2.6
43.4
0.0
65.2
87.9
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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 / (Demerger Adjustment in FY 2022 Rs. 844.36)
Cash and cash equivalents at the end of the year
Mar’23
Mar’22
32.1
2.2
34.3
-50.0
-15.7
-11.0
-26.7
9.1
16.0
-1.6
4.7
3.1
9.5
-0.4
9.1
1.3
10.4
0.0
10.4
-14.2
0.0
-3.8
8.5
4.7
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Thank You!
FICCI – EY Media & Entertainment Report 2022
Tips Films Limited CIN: U74940MH2009PTC193028 Email id: investorrelations@tipsfilms.in
Click Here
Investor Relations Advisors:
Orientcapital (a division of Link Intime India Pvt Ltd)
Nikunj Jain: +91 9769060608 nikunj.jain@linkintime.co.in
Amar Yardi: +91 7045121239 amar.yardi@linkintime.co.in
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