Shares of Tips Industries (TIL) were locked in 5 per cent upper circuit for the fourth straight day at Rs 1,124.80 on the BSE on Friday in an otherwise weak market after the company reported robust set of numbers for the March quarter (Q4FY21). The stock of the movies & entertainment company was trading at its all time high level.
In the past one week, the stock has rallied 26 per cent, as compared to 1.4 per cent decline in the S&P BSE Sensex. The stock is trading in ‘T’ group on the BSE and ‘BE’ segment on the National Stock Exchange (NSE). Shares falling in the Trade-to-Trade or T-segment are traded in BE series and no intraday is allowed. This means trades can only be settled by accepting or giving the delivery of shares.
In Q4FY21, TIL posted consolidated net profit at Rs 18.3 crore against Rs 0.40 crore in Q4FY20. Revenue from operations grew 49.3 per cent year on year at Rs 27.60 crore from Rs 18.5 crore in the year-ago quarter. Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin stood at 71.9 per cent against 1.3 per cent in previous year quarter.
To unlock value of both businesses and result in shareholder value maximization, the company’s board approved demerger of TIL in two separate entity Tips Industries and Tips Films, to transfer films production business in separate entity.
The demerger will enhance efficiencies and will have different business interest into separate corporate entity, resulting in operational synergies, simplification, focused management, streamlining and optimization of the group structure and efficient administration, the management said. The same would result in stability of revenue and profitability of music Segment Company. The demerge would also enhance business operations by streamlining operations, cutting costs, more efficient management control and outlining independent growth strategies.
“The digital media is expected to grow at a CAGR of 27.42 per cent to cross the Rs 50,000 crore marks and reach industry size of Rs 58,550 crore by the end of 2025. On an average, Indians spend 2.4 hours on Social Media, which is at par with the global average,” Tips Industries said in investor presentation.
A 53 per cent of the Internet users watch videos on YouTube on a monthly basis, the numbers being as high as 72 per cent for 18-24 age groups. The paid subscriptions generated 9.1 per cent of the Indian music industry’s streaming revenues in 2019, is expected to grow to 31 per cent by 2024. Paid consumers on streaming apps increased by 15 per cent post Covid-19, the company said.