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Saregama India tanks 20% on Q1 net loss, stock hits fresh 52-week low

The stock has fallen below its previous low of Rs 462 touched on October 9, 2018, on the BSE in intra-day trade

SI Reporter  |  Mumbai 

Saregama Carvaan Go

India shares were locked in lower circuit of 20 per cent at Rs 406, also its 52-week low on the BSE on Wednesday, after the company reported consolidated net loss of Rs 1 crore in the April-June quarter (Q1FY20), due to lower operational income and higher expenses. The movie & entertainment company had a profit of Rs 16 crore in the year-ago quarter.

The company’s operational revenue during the quarter declined 1 per cent at Rs 126 crore against Rs 127 crore in the corresponding quarter of previous fiscal. Total expenses rose 13 per cent at Rs 125 crore over the previous year quarter. EBITDA (earnings before interest, taxes, depreciation, and amortization) margin contracted to 3 per cent from 23 per cent.

The company said it registered 34 per cent growth in Q1FY20 in Carvaan units on a YoY basis. This, despite falling store footfalls and suppressed demand in almost all categories.

To promote pull for Carvaan demand in outside top 10 towns, the Company has started focused investment in advertisement campaigns. In addition, company is also investing in building deeper sales structure in these areas. This has created little impact on the profitability, it said.

India, an RP Sanjiv Goenka Group Company, is India's oldest music label, youngest film studio and a multi-language TV content producer. Since 2017, has been making headlines again owing to the launch of two unique initiatives, Saregama Carvaan and Yoodlee Films.

Till 01:15 pm, a combined 354,713 equity shares had changed hands and there were pending sell orders for 81,540 shares on the BSE and NSE so far. The stock has fallen below its previous low of Rs 462 touched on October 9, 2018, on the BSE in intra-day trade.

First Published: Wed, August 14 2019. 13:20 IST