TIPS Industries Limited has informed the Exchange about Investor Presentation
October 30, 2021
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
This is further to our letter dated October 27, 2021 on the Investor/ Analyst call scheduled on November 1, 2021 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 Unaudited Financial Results of the Company for the quarter ended September 30, 2021.
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 October 2021
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
statements by terminology such as “aim”, “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “objective”, “goal”, “plan”, “potential”, “project”, “pursue”,
“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
Financial Highlights
Quarterly Highlights
✔Released 56 new songs during the quarter
✔Released Hindi film music of Bhoot Police (Home Production)
✔Released music of 2 big Punjabi films
• Qismat 2 - starring Ammy Virk & Sargun Mehta
• Honsla Rakh - starring Diljit Dosanjh & Shehnaaz Gill (released
only 1 song in Sep-21, rest in Oct-21)
✔Worked on a new project titled "Tips Rewind (Season 1) :
• Tribute to Ghazal Maestro Jagjit Singh“ - Recreating 12 Ghazals
of Jagjit Singh
• Recreated Ghazals performed by renowned singers like
Hariharan, Sonu Nigam, Talat Aziz, Shaan, etc.
✔Music of another Punjabi film "Yes I am Student" starring Sidhu
Moosewala will be released in Oct-21
4
Segmental Performance – Music (Quarterly)
Revenue (Rs. in Crs)
EBIT (Rs. in Crs)
EBIT Margins (%)
+77%
29.1
16.5
+52%
19.7
13.0
78.8%
67.6%
Q2FY21
Q2FY22
Q2FY21
Q2FY22
Q2FY21
Q2FY22
Revenue (Rs. in Crs)
EBIT (Rs. in Crs)
EBIT Margins (%)
+4%
28.1
29.1
-14%
22.8
19.7
80.9%
67.6%
Y - o - Y
Q - o - Q
Q1FY22
Q2FY22
Q1FY22
Q2FY22
Q1FY22
Q2FY22
5
Segmental Performance – Music (Half-yearly)
Revenue (Rs. in Crs)
EBIT (Rs. in Crs)
EBIT Margins (%)
+82%
57.2
+71%
42.4
79.1%
74.1%
31.4
24.9
H1FY21
H1FY22
H1FY21
H1FY22
H1FY21
H1FY22
6
Q2 FY22 Profit & Loss Statement
Particulars (Rs. in Crs)
Q2 FY22
Q2 FY21
Y-o-Y
Q1 FY22
Q-o-Q
H1 FY22
H1 FY21
Y-o-Y
Revenue From Operations
Other Income
Total Income
Employee Benefits Expenses
Other Expenses
Depreciation and Amortisation Expense
EBIT
EBIT %
Finance Costs
PBT
Tax
PAT
PAT %
EPS
95.9
1.0
96.9
2.5
11.0
55.3
28.1
29%
0
28.1
7.1
21.0
22%
16.2
16.5
0.4
16.9
1.9
5.2
0.2
9.5
56%
0
9.5
2.8
6.7
41%
5.2
483%
195%
195%
212%
28.1
1..0
29.1
2.2
7.2
0.2
19.4
66%
0
19.4
4.8
14.6
52%
11.2
241%
124.1
1.9
126.0
4.7
18.2
55.6
47.5
38%
0
47.5
11.9
35.6
29%
27.5
45%
45%
44%
31.4
1.1
32.5
3.8
10.1
0.4
18.1
56%
0
18.1
5.3
12.8
41%
9.4
295%
162%
163%
178%
7
Balance Sheet
Particulars (Rs. in Crs)
ASSETS
Non-Current Assets
Property, plant and equipment
Investment Property
Financial Assets
(i) Investments
(ii) Loans
(iii) Other financial assets
Other non-current assets
Current Assets
Inventories
Financial Assets
(i) Trade receivables
(ii) Cash and cash equivalents
(iii) Bank balances other than (ii) above
(iv) Other financial assets
Current Tax (Net)
Other Current Assets
TOTAL ASSETS
Sep-21
Mar-21
Particulars (Rs. in Crs)
Sep-21 Mar-21
1.9
12.4
2.0
12.5
18.3
18.0
0.2
0.1
6.4
-
47.2
26.4
32.0
5.4
3.1
36.9
190.4
0.2
0.1
4.5
-
15.1
31.1
2.4
5.3
1.0
55.9
148.2
Equity
Equity Share Capital
Other Equity
Total Equity
Liabilities
Non-Current Liabilities
Financial Liabilities
Deferred Tax Liabilities
Employee Benefit Obligations
Other Non-current Liabilities
Current Liabilities
Trade Payables
Other Financial Liabilities
Employee Benefit Obligations
Other Current Liabilities
Total Liabilities
TOTAL EQUITY AND LIABILITIES
13.0
121.1
13.0
88.3
134.1
101.3
2.4
0.2
2.4
0.257
33.4
36.0
18.1
0.3
0.2
1.7
6.3
0.3
0.0
1.8
56.3
47.0
190.4
148.2
8
Cash Flow Statement
Particulars(Rs. in Crs)
Net Profit Before Tax
Adjustment for Non-Operating Items
Operating Profit/(Loss) Before Working Capital Changes
Adjustment for WC
Cash Generated From Operations
Direct Taxes Paid
Net Cash From Operating Activities
Cash Flow From Investing Activities
Cash Flow From Financing Activities
Net Increase/(Decrease) In Cash And Cash Equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the period
Sep-21
Sep-20
47.5
-1.0
46.5
-35.3
11.2
14.0
-2.8
0.7
-2.6
-4.7
31.1
26.4
59.2
-0.5
58.7
-4.6
54.1
12.9
41.2
-11.5
-24.6
5.1
26.0
31.1
9
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 and films
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
Catalogue is licensed to
• OTT platforms
• Content Aggregators
• TV Channels
• Telecom Companies
• Radio Stations,
• Advertisers
Hindi
Punjabi
Gujarati
Bhojpuri & many others…
Presence across platforms
Extensive Devotional, Pop, Remixes
catalogue
of
Film, Non-Film,
• Event Management Companies
• Hotels, Restaurants, and Others
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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 •Commitment •Teamwork •Passion •Positive attitude
12
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 61 Mn
YouTube channel subscribers/followers
Broadcast Partners
13
Two Pronged Content Acquisition Strategy
Our endeavour to add right content for larger target audience
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 charged off to profit & loss account in the year of release, thus no Capitalization & no write-offs in the future. Company follows this policy since inception
Content acquisition cost is only funded 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 through internal accruals
Strong A&R team to acquire content across languages & genres. 5 Artists signed exclusively
14
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
215
56 New releases in Q2FY22
117
100
Existing Content + Continuous Additions : Increasing Music Revenue
FY20
FY21
H1FY22
Youtube Views (in. Bn)
Youtube Views (in. Bn)
+41%
26.6
38.5
19.3
+66%
15.3
11.8
12.8
+20%
7.6
7.7
5.9
9.2
9.8
FY19
FY20
FY21
Q3FY20 Q4FY20 Q1FY21 Q2FY21
Q3FY21
Q4FY21
Q1FY22
Q2FY22
15
Annexure
Music is the most valuable content
Ranking on repeated monetization
Music is now an internet business
Music
Films
Web Series
TV Serials
News
*Source: IFPI Industry report (2020)
can
be that Content monetized multiple times naturally commands greater economic value
*20%
2%
11%
2020
68%
content
Music ranks at the top of pyramid the when on repeated monetization
ranked
Internet Performance Rights
Sync *Physical
Internet platforms comprised 68% of total revenues in 2020, up from 54% in 2018, for the Global Music Industry
*Japan has the largest share. India’s share is less than 2% as more than 80% of music has been digitized
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Digital Advertising – Key Driver of Indian Music Industry
Indian Digital Ad Industry
AD spends on Digital Media by formats & verticals
INR Crs
Social Media
Paid Search
Display Banners
Other incl. Classified
Online Video
23,673
+22%
18,938
15,782
13,683
10,859
8,202
6,228
32%
1%
3%
49%
23%
9%
21%
32%
14%
15%
26%
1%
42%
21%
10%
34%
0%
15%
24%
0%
31%
31%
0% 13%
34%
20%
41%
27%
13%
24%
17%
34%
3%
18%
26%
45%
2%
19%
16%
18%
17%
25%
15%
19%
18%
2016
2017
2018
2019
2020
2021f
2022f
FMCG
Auto
E-commerce
Retail
Telecom
BFSI
Media & Entertainment
Consumer Durables
Others
• Digital media is expected to grow at a CAGR of 22% to cross the Rs. 23,600 crores by the end of 2022
technological
• This sustained growth can be attributed to the advancements, improvements in data science & analytics, introduction of policies & regulations among others
Source: Dentsu Aegis Network Report 2021
• Advertising spends on Digital Media is led by Social Media with the largest share of 29%, contributing Rs. 4,596 crore to the Indian digital advertising pie
• Social Media is new revenue stream for
Music Industry
• 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
18
Global Music Subscription Update
On Demand Audio streaming in the US was up ~17% y-o-y. 76 Mn Music services subscribers v/s 74 Mn subscribers of Netflix
Netherlands
Proportion of Streaming doubled in last 8 years & ~60% have premium subscriptions
Paid streaming contributes ~75% of revenue for Music Labels
Slightly under 1/3rd of population of France is Slightly under 1/3rd of population is using Streaming using Streaming services & off that more than services & of that more than ~62% of people are using ~62% of people using paid streaming services paid streaming services
Music revenue grew by ~50% in 2019 and streaming grew by ~76% for 2020, this was partially aided by high profile launch of Spotify
Number of paid subscribers doubled in 2 years to 60 Mn; Second highest globally but still under 5% penetration of country’s total population.
Russia
China
Listenership on audio streaming services grew by 40% Y-o-Y in first half of 2020
India
19
USA
Brazil
France
Source: MusicAlly
Few Industry Reports
dentsu – Digital Advertising in India
IFPI – Global Music Report
Click Here
Click Here
FICCI – EY Media & Entertainment FICCI – EY Media & Entertainment Report 2021 Report 2021
Click Here Click Here
Ericsson Mobility Report
Click Here
20
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)
Ms. Payal Dave: +91 9819916314 payal.dave@linkintime.co.in
Ms. Neha Shroff: +91 7738073466
neha.shroff@linkintime.co.in