Tips Music Limited (TIPSMUSIC) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q2 FY '23 Earnings Conference Call of Tips Industries Limited. [Operator Instructions]. Please note that this conference is being recorded. I now hand the conference over to Mr. Rajesh Agarwal from Orient Capital. Thank you, and over to you, sir.

Thank you. Hello, everyone, and a very warm welcome to Q2 FY '23 Earnings Call of Tips Industries Limited. Today on this call, we have Mr. Kumar Taurani, Chairman and Managing Director, Tips Industries Limited, along with Mr. Sunil Chellani, CFO for Tips it Industries Limited; and Mr. Girish Taurani, COO for Tips Industries Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations as of today, and actual results may differ materially. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. A detailed safe harbor statement is already given on Page 2 of the company's investor presentation, which has been uploaded on the stock exchange and the company's website as well. With this, I hand over the call to Mr. Kumar Taurani for his opening remarks. Over to you, sir.

Thank you, Sagar, (sic) [ Rajesh]. Good morning, everyone, and welcome to the Q2 FY '23 Earnings Call of Tips Industries. Firstly, I would like to wish all the participants a very Happy Diwali. Our teamwork is paying off, and we have been able to report a substantial increase in our revenue from operations for the quarter and half year ending September 30, 2022. We released 228 new songs, which is highest in any quarter so far. These includes 140 new film songs and 88 non-film songs. This quarter has seen a substantial increase in our content cost, which reflects our investment in the music business. Our YouTube channel too has gained more subscriber. And for Q2 FY '23, our subscriber count was at over 74.84 million subscriber followers and our views for Q2 FY '23 were about 27.3 billion, which is an increase of almost 31% in our views over the previous quarter. We will continue to invest in quality music to achieve our vision of becoming the #3 player in the industry. Now let me hand over the call to Mr. Sunil Chellani, our CFO, to share the financial highlights of the quarter. Over to you, Sunil.

Thank you, sir. Good morning, everyone, and wish you all a very Happy Diwali. As you know, at Tips Industries, our financial statements are very simple and transparent. Let me take you through the financial highlights for the quarter gone by now. Our revenue from operations for Q2 FY '23 stood at INR 49.6 crores as compared to INR 29.1 crores in Q2 FY '22, an annual growth of 70%. Operating EBITDA stood at INR 27.2 crores for Q2 FY '23 versus INR 17.8 crores in Q2 FY '22. The Y-to-Y growth is 52% and operating EBITDA margin was at 54.8% for this quarter. Our profit after tax for Q2 FY '23 stood at INR 20.8 crores versus INR 11.2 crores in Q2 FY '22 with a PAT margin of 41%. PAT has gone by 85% on Y-to-Y and 21% on Q-to-Q basis. With this, I open the floor for discussion. Thank you very much to everyone once again.

[Operator Instructions]. The first question is from the line of Akshay from Sam Capital.

Happy Diwali, sir, to your entire team and congrats on a fantastic set of numbers. Sir, generally the December quarter for us is the strongest quarter for us because of various reasons, because of obviously the Warner contract signing also happened in December quarter. Sir, majority of the revenue growth this quarter, obviously, it’s very heartening to see. So where did it mostly come from? Because, obviously, I know that we signed the regional deal with Spotify as well. So I was just trying to understand where did the majority of the growth — this -- fantastic growth this quarter come from, if you can explain a bit?

Yes, we are doing well at across the platforms, but YouTube is the key you can say, plus we have signed a deal with Resso. Resso was big for us. And overall, also our few deals likes TV deal and all that it’s from all the sectors you can see. But major is, I think, Resso and this YouTube.

The Spotify deal we’ have done it by ourself or by Warner?

The Spotify Hindi repertoire we have through Warner, but Spotify and balance repertoire we have done through — -- there is a company called [ Merlin], we have done through them. But we have not got any money -- advance any money. We will have on a performance basis, whatever money we accrue, our repertoire will earn, we will get money.

Okay. So also just wanted to get your opinion on this majority of the economy slowing down or -- so where do you see the ad rates going in this particular time when the economies all across the world are slowing down. Where do you see the ad rates? Do you think that they will also come down? Or where do you see them?

I don't think it will come down. What we see, if you see this YouTube or everywhere, it's the same or maybe they are increasing. Maybe the growth is not what they predicted 35%, 40% will be growth. Maybe it will for 1, 2 months or 3 months, maybe it will come down to 5%, 10% reduce. But I don't feel this will be a problem for us.

Okay. Sir, lastly, a suggestion because I saw that our Tips official channel on YouTube was, I think, hacked because the name was changed by some, I think, cryptocurrency company or something. I hope we are taking some measures on the cybersecurity front to protect our IP on YouTube because the name was changed, and I think it was shut down for a while as well. So I mean that's a suggestion, if you can comment on that.

Yes, yes. I know that. I know that happened. We were all on alert and all the precautions has been taken. And you know we are in a technological world, and these things sometimes happen. But I think we'll make sure it won't happen in the future.

The next question is from the line of Sagar from PhillipCapital.

Seasons greeting to Tips family. Sir, my first question is what is your self-assessment on the response that PS-1 songs have got? If you look at YouTube viewership as a sample, so that is my first question. Secondly, you have released about 228 songs during the quarter and you write off the content cost in the same quarter from the P&L as a policy. So if you see the content cost to make those 228 songs at just INR 17.2 crores, am I missing something here? Probably there might be some overlapping in terms of the regional songs that you might produce. So what would be the unique number of songs that you might have made during the quarter?

This 228 songs we have released and whenever we start making our song, we just keep on spending monies and we keep that as an advance. And whenever we released, the same quarter we write off in the report or a statement, audited or unaudited statement results. So this is -- whatever we released in this quarter, we have written off everything.

And on the PS-1 song what is your...

PS-1 has really, really picked up very, very well. We are really doing well on PS-1, particularly that Tamil language film. And I feel now PS-2is also coming. So this craze will be till then. So we -- I expect in next June, July, PS-1 and PS-2 will be alive and we will make a good money on that.

And this INR 25 crore acquisition cost is for PS-1 and PS-2 put together?

Yes, yes. I think actually, it's not so much. It's -- we are calculating including promotion, you can say. Promotion costs also I'm putting in this approximately that much will be the ultimate cost, maybe a little less.

Okay. So that includes in the content creation itself?

Yes, yes.

And any update on renewing contract with JioSaavn?

Let's hope for the best. Let's -- we are trying this quarter, we can have some good news. Let's see.

Yes. And last question, sir. You mentioned that YouTube was one of the -- YouTube channels was one of the platforms from which the growth came in during the quarter. So if you see on the [ Social Blade ] the September viewership were down for us and despite that, it became a primary driver of the revenue. So your thoughts on that?

Actually, that small thing here and there, it will keep on happening. So I'm not bothered. [Foreign Language]. Some people have not seen YouTube. They must be busy in their festivals and all that. I think these things will happen. But that should [ things ] well. So I'm actually not concerned with.

The next question is from the line of Ankush Agarwal from Surge Capital.

Congrats on a great set of numbers. Tauraniji, firstly the Spotify deal [Foreign Language] regional. I missed hearing that you said [Foreign Language]?

Yes.

[Foreign Language]. I believe if we go to a third party, we would have to share some part of our revenues with them as well. [Foreign Language].

I mean directly [Foreign Language] 99% we do deals directly. But as a regional content [Foreign Language]. So we will be a big -- in the big pie of the deal. So what we calculated, we will make bigger -- better monies, and we will have a lot of insight. And this company is actually doing many, many business, they must be supplying content to 100 companies. So we will have access to many, many other businesses as well. We have said [Foreign Language] then we will see how benefit we got. So -- and this is a temporary deals 1 to 2 years [Foreign Language] We can go back to Spotify directly as well, not a problem. We thought we let us learn also this. [Foreign Language]. We can approach and start our business.

[Foreign Language].

I don't think so. [Foreign Language], recently, when we released PS-1, we have started the deal that.

Secondly, sir, [Foreign Language].

Yes. [Foreign Language].

Lastly, Tauraniji, [Foreign Language] and we are spending entire content cost to P&L and internal accruals [Foreign Language] obviously for -- if some future opportunity comes up [Foreign Language] try to distribute and all that stuff?

[Foreign Language] we are a cash company. [Foreign Language] you should do a buyback this year and [Foreign Language]. So I'm thinking that. So next week [Foreign Language] plus you are right we should have, at any given time, INR 100 crores, INR 150 crores [Foreign Language] up to INR 200 crores maximum [Foreign Language] so we are ready to and do some good buy also.

[Foreign Language] that if possible I think [Foreign Language] so that our cost is better, right? I think if that is discussed internally, that would be very helpful.

Okay. I'll talk to my people. [Foreign Language]. We'll do that.

The next question is from the line of Garvit Goyal from Nvest Research.

Sir, firstly, what is the rationale behind the dip in the EBITDA percentage for the current quarter?

What you're saying EBITDA profit as a percentage?

EBITDA percentage sir?

Yes.

So there is a dip in current quarter. So I was asking for the rationale for that.

Yes, yes. So please understand we have written off a big number on content cost. So because of that, there is a dip, you can say. So that's the only reason because of that. But percentage-wise, maybe it's reduced. But if you see number-wise, after writing off so much -- such a big amount, we -- compared to last year's Q2 '22, we are much higher in all the criterias. Plus if you compare even this year's quarter 1, we are much, much higher. So I think these things will happen. But we -- as I explained earlier and always, you see a bigger picture, bigger picture, what I say 25%, 30%, you must see we should maintain top line year-on-year basis and plus 15%, 20% in the bottom line. So we are -- I feel as of now, we are heading for that. We will achieve that.

Understood, sir. And sir, is there any kind of headwind in the industry that you are looking at in the near term or medium term?

Headwind? What is headwind?

Means any kind of negative outlook for the industry?

Industry is doing well, worldwide, music industry is doing well. Music industry has very good future, I feel. So I'm okay with -- nothing is concerned. No concern at all.

And sir, in the half year, we have released around 413 number of songs. Then in the second half, what is the outlook in terms of number of songs that we can release?

I think total target was this year was 550, 600 songs. I think we'll do more than that, around 650, 700, we will cross.

650, 700. And already you have done 413 songs, right?

Yes, yes, yes.

Understood sir. So what is the guidance for the top line in the rest of financial year '23?

Top line, I told you already. So last year 135, 25%, 30% [Foreign Language] so around 175, 180 around that much it will be depending upon how -- but this will be definitely happen. I am seeing that it's happening. But the 2 more quarters to go. And if we crack some other deals, so maybe it can go a little better also. It can become better also.

Because December quarter is strongest for us. So I hope it will be better than September. September is already very good. So we expect a better performance, right?

We are working hard. We are pushing from everywhere. We are releasing many new titles as well, big titles this quarter. So Honey Singh is the key artist, big artists coming this year. And we have also recorded Badshah, Badshah songs also coming. So maybe Badshah will also launch this quarter because it's a party quarter. Parties happen and they sing the party songs. So we are doing many things like that.

Understood, sir. And sir, that PS-2 that you are saying it will be released in June or July next year. So the entire post for PS-1 and PS-2 you have written off in this quarter or something is to be written off at the time of PS-2 release?

No, no. We have written off only PS-1. PS-2, we will write off when we release the music of that.

Okay. Understood, sir. Understood. Understood. And is there any kind of new platform where we are currently in discussion with or any kind of inorganic opportunity we are considering or any kind of such development internally going on, sir?

We regularly talk to all the partners, whether it is -- our content is available or whether our content is not available. We always try to crack a deal. So -- and these things happen. So that's what I think just wait for another quarter, we'll try and give you good news.

The next question is from the line of Ravi Naredi from Naredi Investments.

Really, it is a fantastic result. My point is since I have joined late, why the reason of other expenses rises too much?

Because of PS-1, we have released a big film, PS-1, and it has a huge cost of acquiring rights of that film and marketing expense on that film. So that's a major reason for huge cost expense.

Understand, sir. And this is, again, reason of EBITDA margin down by 1,100 points?

Yes. Yes, yes.

Okay.

But overall, if you see numbers, we are quite up.

Hello -- yes.

Maybe our percentage is down, but our numbers, if you see top line, bottom line compared to last '22 second quarter or this year's first quarter, we are quite up, big time up.

Right, right. Sir, can you tell the top 5 contributors in our revenue like YouTube, OTT or TV channel and any others?

See, I can't tell you a customer-wise, but I can tell you the 75% is digital market and from 75%, you can say around 45%, 50% is YouTube, 25% to 30% other digital companies put together and rest is radio -- sorry, not radio, TV and that public performance we get money, we get money from sync deals, et cetera, small, small money that comes.

Right, right, right. And sir, will you manage TV films con call separately when you come out with results?

Yes, absolutely, we do that. And we have done that. I think recently, a few days back, I have done the one call, first call.

The next question is from the line of Om Prakash from [ Ultrasign ] Holdings.

Sir, when I accumulate YouTube viewership of all channel related to Tips Industries, then that was only 250 crores to 300 crore views in last quarter. But you showed 27.3 billion views. Can you explain this difference?

No, there is -- we have -- we don't have one channel. We have around 20 channels, 18, 20 channels. So we -- whatever we have written...

Yes, sir. I accumulate all channels viewership in About section.

Yes. We'll come back to you in this meeting. In the end, I'll tell you. Just tell me what is the difference you said 30...

Yes sir.

What you have calculated...

According to me, these views are 3 billion, but you showed 27.3 billion views.

30 billion and according to you, it's 27 -- report made 27 billion we have written and according to you, it's 30 billion.

3 billion?

3 billion. [Foreign Language]. I'll just tell you, give me a few minutes. I'll come back to this within this meeting -- in this meeting, yes. We'll find out.

The next question is from the line of [ Basava from Basava Assets].

I have a few questions regarding the Tips South. First of all, congratulations on the Tips Tamil. You got around 450,000 subscribers and around 180 million to 190 million subscribers from the PS-1. I think it is a really good performance. My question is on Tips Telugu. Could you please explain your strategy on Tips Telugu? So far, whatever the -- I mean, around 2 to 3 songs are releasing on average for every week, but those are all not from the good -- I mean, star cast. Those all upcoming kind of thing. So I mean, in Tips Tamil (sic) [Telugu], you are going with one approach and Tips Tamil, you are going with a different approach. Though you have the Hari Hara Veera Mallu and Shaakuntalam with a good power cast. But so far, in the Tips Telugu, it is going in a different direction. Could you please explain that one, your strategy?

See, we have to build a repertoire over there. We don't have much content in those languages.

Okay.

So we -- whatever attempt we get, we are buying. We have to build the content also in that zone, those languages. So that's why we are doing that. And whatever good films, big film, so we are open to everything. We are not open to just big films or just small films. Like you said, we have bought Hari Hara Mallu and Shaakuntalam or Ps-1, PS-2. So we are buying many films.

Okay. So whatever the -- I mean, so for the small films, we are not paying much. Those are just like...

Yes, yes. We are paying a correct value.

Okay. That is what my exact -- I mean, question. So it is -- can we assume something like -- is something like a volume channel so far for the small films. So it will perform according to their views, and according to their views, we are paying. Is that the correct assumption?

We can't pay everybody the same money, no. Absolutely. We buy films in a few lakhs and we buy films in crores. So that is -- don't worry about that.

Okay.

Can I answer to Om Prakashji's question. Operator, can you open Om Prakashji's line? Hello Om Prakashji...

Sir, his line is in talk mode.

Hello.

Yes. We have checked our system. 27.3 billion is a correct number. And wherever you got such a big difference, 3 billion, you can please write us an e-mail, we will reply you.

Okay sir.

But our number is correct because we have -- we take these numbers from YouTube. We have a system in the place with YouTube. So -- and they will report to us on a daily basis, you can say.

But I checked this in About section your all channels, YouTube About section.

I really can't. I don't know. But if you can please tell us -- give us an e-mail, you can send us e-mail, we will definitely tell you. No problem. For example, just I got this number, 9.7 billion is only in September. I don't know however you have counted, just write us details of that also, so we'll clarify where is the mistake.

Okay. Sir, I will.

No problem.

The next question is from the line of Rakesh Wadhwani from Monarch Networth.

Sir, I have a few questions. One is like we have acquired lots of region content also in this last 2 quarters because we can see non-movie songs and also rest of the movie songs. So they will be either from Hindi or other regional movies also. So I just want to see where you're acquiring in which language you're acquiring more and seeing more traction?

We are acquiring in many languages. Whatever you see by all channels, we are acquiring in all those things. But I think this is a good suggestion. Next quarter, maybe we will include the language-wise how much content or how many songs we are acquiring. We'll give you that details as well in the report. So you will be perfectly knowing how many songs we are acquiring language-wise.

Okay. And sir, second question, you mentioned in the presentation and also Q4 results and as well as in the Annual General Meeting that the content cost will be around 2x of the last year. So we assume it will be in the range of INR 55 crores to INR 60 crores and -- so INR 55 crores to INR 60 crores assume. And we have around INR 100 crores cash flow and next 2 quarters cash flow will be also accumulated. So sir, what is the reason behind buyback? I just want to understand your perspective [Foreign Language] because INR 60 crore content cost expense [Foreign Language] and a few -- some amount of cash should be with us because in order [Foreign Language] so you can just -- like PS-1 or PS-2 movie should have some buffer cash with you, so that a good movie come and you can get it.

Correct. So that's we are doing that. So what is your question basically?

No, sir. [Foreign Language]. so invest money in any good movies like 4, 5 movies comes and you can -- that is my thinking.

Yes, yes. Understood. So we have surplus cash. We have lot of cash. I don't think I need that cash. [Foreign Language] on a quarter-on-quarter basis. So I don't feel [Foreign Language] and why to keep money in company, so [Foreign Language] it's good for all of us that we get less tax, free money is good. So I think [Foreign Language] within 1 or 2 months, same cash will be there after spending so much money.

Okay. Okay. Thank you very much for clarifying on that one.

The next question is from the line of Mayur Parkeria from Wealth Managers.

Wish you and entire team a Happy Diwali. Good set of numbers. So congratulations on that. Sir, I had a couple of questions. One is on the balance sheet, if we look at the current assets and noncurrent assets, both put together are roughly INR 40 crores. Sir, what would be the inventory in that, which has been non-monetized and which is work-in progress, the inventory, how much will be that?

Yes. Chellani question for you, please, reply?

Yes, it will be around INR 30 crores.

So the current asset part is the inventory part, right? hopefully?

No, it is -- we have to put together because we have to bifurcate it current and noncurrent.

Okay. So sir, why would any part of inventory be noncurrent assets?

Depending on which -- what is the age of the inventory. Suppose we have given some advances and the advances are more than 6 months or 8 months old, so we have to bifurcate what is the current and what is non-current.

But sir, normally, is it noncurrent means the thing realizable more than 1 year. So is it that -- so because I was just trying to correlate with our policy that we will write off most of this. So is it that the project is longer duration and advances the actual project will commission and factor or we'll get the music a little longer in period, and that is why...

I'm talking about the advances.

Right, right. But advances would be for acquisition of right of movies, like the music right, right?

That;s right.

Okay. Okay. Sir, once again, I'll reiterate this is a great policy of writing off 100% of the cost. So hope no matter what the -- there will be cycles in the industry in future also. I hope you continue to maintain that kind of a policy, it's a transparent and a conservative policy. So that's great wish. I joined the call a little late. So I had 2 more questions. Can you throw some light on the deal with ISRA?

Deal with?

ISRA?

ISRA?

Yes sir.

Yes. Actually, I want to brief all of you. We have 2 good things happened with Tips and the industry -- actually industry. One is ISRA. ISRA is a body of Singers Association, India, Indian Singers Association, and government has given them license to collect money on their singers behalf. But when this Copyright Act was formed, so the singer right is actually assignable. We can take that right from them, and then we don't have to pay them any royalty or anything. And 99.9%, all the music companies in India doing that, we are buying them, we are paying them lump sum or producer -- if he is recording for any film producer, singer is singing. So we are paying them money, and we are -- give them lump sum and no royalties or nothing. But their interpretation of a few sections of the law was different, and they were a little troubling us in the market. [Foreign Language] Few people were scared [Foreign Language] that was like a [Foreign Language]. So we have resolved that with them. We have spoken to them. And because of that, business of that public performance was also hurting [Foreign Language]. So we have settled with them, and we have to pay them some money, all the members put together. So we will have a little hit. But with that, our business will be too huge for that section in next 3 years. It will be grow like -- 100%, it will grow. So we have -- entire industry has taken this call, and we have settled with them, and we have signed the deal with ISRA Singers Association, we will pay them some money from our earnings of that public performance basically. So we have done that. And also, number two, there was another case on Tips. Airtel, that Wynk service, they have put -- they've given the abrupt like radio they do, they decide how much royalty they have to pay. They have taken that route for Internet, I think in '17 -- 2017. So we have put a case on there. And in 2019, we won that case, a single judge, Kathawalaji has given an order in our favor. All the points he favored us. He notes Tips is right on all the fronts. Then Airtel gone for a 2-bench application [Foreign Language] order wrong [Foreign Language] so that was also -- we are fighting with them for the last 3 years. Ultimately, last Thursday, Thursday orders came in our favor, Tips' favor. No, Internet is not radio. It's not compulsory. You have to take a license. You can't use. It's my exclusive property of Tips and you -- they have to take my right. So we have won that case. So these are 2 good news. And actually, this even judgment, Tips has fought, but this has actually saved the entire industry. Actually, we have fought for that. So these are the 2 good news I want to share with all of you.

Great, sir. That's great congratulations. Sir, on the ISRA -- everything is like normal the way you used to give the singers. Only thing on the public performance, there was -- it was taking a little bit as of -- I mean, the actual impact if we see, now the thing will be, it will get more clarified the picture, the uncertainty has gone. And the revenue model and the sharing model is more clear now.

Yes, sir. Yes, absolutely.

Okay. And sir, how much hit will it come to Tips and over what period?

I think first 2, 3 years, it will be INR 2 crores, INR 3 crores. And longer term, that will be -- it will come on a percentage basis. So maybe it will come more, but then we are also making more money.

Okay. Okay. INR 2 crores, INR 3 crores a year, sir?

Yes, yes.

Okay. Great sir. Last question from my side sir...

Yes, yes. Okay. But please understand, Mayur that support that all the singers today, we have settled with IPRS. So earlier, we used to make from IPRS only INR 1 crores, INR 2 crores. But now we are making INR 10-plus crores from them. So that's a big thing. So similar thing will happen with ISRA. So now all the creative people, singer, composer, lyricist and publisher like us, music company, publisher, everything -- everyone is on the same side, one side. So it's a big thing for us. I think we will really -- you will see the very, very big monies coming from that section, that genre of the music.

Great. Great, sir. Great, sir. Last question from my side, sir. In our vision, the first -- the vision itself talks about our vision to have almost a bouquet of hit, right?

Bouquet of...

If you look at the...Hello.

There is a disturbance in your sound. It's coming and going.

Yes. Sir, now is it clear?

Yes, it's better, yes.

Sir, I was saying our vision itself, it says that we need to maintain and grow the must-have hits catalog. Right. So I just wanted to understand, sir, what is our strategy given the cash which we have? And what is our strategy for acquiring new music on that side? And what kind of checks and balances will you keep to balance the cost of acquisition of a good music versus the -- it is always in the hindsight whether the hit actually has played out or not. So how will you balance -- what checks and balances will you keep to ensure that the cost is also maintained, but at the same time, utilize the balance sheet cash to continue to acquire good music? And what is our actual plan of acquisition in the next 2 years, sir? Yes, that will be my last.

See, actually, that problem we have. Now we have a market of 2, 3 companies for content acquiring. But today, we have 5 players in the market. Everybody wants a good music. But then also, we are very selective. So we don't want -- like I earlier also said, see there is -- some other company has quoted, there is a market of INR 800 crores of content comes up and they want to acquire INR 200 crores, INR 250 crores content. But I don't have that budget. I don't want to acquire so much of content. I'm very cautious. I want a very selected product. Whatever I like, I don't mind paying INR 2 crores, INR 3 crores more, but I want a very selected product, who is the -- what is the criteria behind the music. We have our own parameters and our experiences with that, plus data also, we keep on checking. So that we have a clear whatever budget we allocate, maybe 5%, 10% here or there, we can go, but we will not be very aggressive. We will be selective. That's a key point of content acquiring.

But sir, will it not also calibrate -- will it not also play on the fact that if the competition is aggressive, we may lose this period of good music for a couple of years if we -- because the industry structure is becoming like that and it's put out on the -- we may have the cash, we may have our own relative policy, but what if the acquisition we lose out on good music during this era, sir?

Mayur, our -- I said that we will try and we'll get the quality music, I said that. And in our business, quality is better than quantity. So our focus is on that. And trust me, and we will maintain our growth, we will be better than many, many other companies. I'll prove it to you. Just give us another -- and we are proving actually, if you see quarter-on-quarter basis or a yearly basis, so that we are doing well. And we don't want to be very aggressive and then suddenly [Foreign Language], we don't want to do that.

Right sir. Great to hear your views sir.

The next question is from the line of Garvit Goyal from Nvest Research.

Sir, actually, I wanted just clarification on this ISRA side. Basically, you're saying it will help in long term. So can you please explain how the things will shape up because actually you're not having -- you're not getting that.

Actually, I can't hear you, please. Can you repeat? And if you can be a little slow, please?

I was saying sir, you were mentioning about ISRA. You're saying this will help in the long term. You are mentioning about ISRA.

ISRA, okay?

S you were saying it will help us in long term. So can you please explain a little bit more how it is going to shape up for us, how it's going to helpful for us sir?

See, at present, everybody goes in the market and say [Foreign Language], I want to license, event is happening. And so that way, now these companies won't go. And we can claim whatever we're charging to the parties, events, [Foreign Language] we can charge more. We can increase our prices to 50%, 60% and which we wanted earlier. But because of this chaos, we were not doing that. We were not going aggressive about that. So that will help us. Plus there is so many small, small issues with Government of India. Now we have settled with the artists. Artists will support us in all those things also to recover more monies. So I think it's a very, very good thing happened with the industry. And you will see the very, very big kind of results in future. In next 2, 3 years, you will find [Foreign Language].

You're saying we are giving the fixed amount to this ISRA and later on, we can realize more money because ISRA will not go to the singers to realize to claim their money.

Yes, yes. They won't go to the market. They won't do anything in the market.

Understood sir.

And one more thing, they are also in next 1, 2 years, they will all come back on a profit-sharing basis. So now after this profit-sharing basis, so they will also help us to increase our profits. It's in their advantage as well.

Okay. They will get incentivized in that condition.

Yes, yes, yes.

Right. And this is for the entire industry...

Absolutely, entire industry. ISRA company signed and all that PPL -- this is handled by PPL and PPL is all major companies, the entire Board has signed this, and they are taking next -- that agreement in the AGM also. And the major member has a major voting rights in that AGM.

The next question is from the line of Rakesh Wadhwani from Monarch Networth.

My questions are answered.

The The next question is from the line of Ashok Saha from LFC Securities.

Sir, my question relates to our inception and IPO since many years ago, we came out with -- at a price of INR 350. So over the years stock was down. So last buyback was done at INR 140 in the March '20. So since the price has increased, so would it be fair to assume that it will be on similar notes that it will be done on tender basis only because it's a most efficient way to buy back the shares.

There has to be a current value or more than that, we can't go at such a less price. So still, we have not debated this. This is the only thought I told you. We will discuss among ourselves, and we will discuss experts with this, and we'll come back.

Okay. Sir, my second question relates to the -- our final consumer is public. But who pays us? Is it a radio industry pays us or the person or the company, which makes the program, who pays us a major amount? And can you just name 1 or 2 largest customer or the person who is paying us just like...

Radio people don't pay us. There is a case going on with the industry. So there is a big problem in radio industry, particularly. So let's keep that as out for some few more quarters. And rest of my customers, our earlier business when we used to sell cassette and CD, it was a business to consumer. But now as our customers are like people like YouTube, Spotify, all TV stations, so our business is B2B. So now we give them and we -- and our big customer is YouTube.

Okay. YouTube is the largest customer. Does it make sense...

We supply to all the music companies, not only for the Tips, but all music labels.

Yes. But we are the most efficient in all this category. So does it make sense to acquire some other companies who was a competitor as an inorganic growth because there are many old songs and everything is available. And also, there is one newer way of making a radio like Saregama has done it. And I think one more company has done and made a radio with songs, recorded songs and everything. So are we thinking on a similar line to monetize our assets or the?

No. Actually, please understand my consumer, my customer, who listens my music, it's a young audience. The young audience has their -- they know how to operate technology, to on Spotify, Resso or YouTube and listen music, I can make my own playlist. So I don't need to venture into that. And I don't have such a huge repertoire. I can go for a making of a radio, and there is a lot of expense behind that. And actually, it's not a profitable business for -- at least for me. So I'm very happy what we are doing, and we will continue doing that. So that's good for us, I feel.

So we make almost 90% of the profit of new releases only, new songs only.

No, no, no. You can say our majority of income is from our repertoire.

Okay. So it consists of the new music or the new ideas or something?

No. It's a combination of both, you can say, new and old.

So percentage-wise, new one is some higher because we are also going in a regional way also.

No, still that new releases we have started from last year, we are still checking how much will be the ratio of new versus old. So it will take another 3, 4 quarters to tell you exactly what's happening.

But any rough idea, new and new versus old or something like that?

Rough idea, you can calculate 30, 30:70 or 25:75, something like that.

70% is approximately new releases, and...

Old, old 75% will be, 25% new.

Okay. Okay. And what is the percentage of the buy from the new movies?

I didn't get that. What you are saying?

No, no, no. Songs of the new releases, movie release. So do we buy the new movie release songs also?

Yes, yes, yes.

So that's what percentage?

Percentage of new movie buy from the -- how many movies are being produced and how much I buy? You're saying...

Yes, yes.

2%, 3%.

2%, 3% only. So remaining are the repertoire or something like that. So it's a very good.

Yes.

Thank you. Ladies and gentlemen, in the interest of time, that was the last question. I now hand the conference over to the management for their closing comments. Over to you, sir.

Yes. Thank you, everyone, for joining us. I hope we have been able to answer all your queries. I would also like to highlight that our presentation now has a link of all our songs displayed on Slide 3, and you can view the songs on YouTube. In case you require any further details, you may please contact us or Faraz Ahmed at Orient Capital, our Investor Relations partner. Thank you, and Happy Diwali to all of you once again. Thank you so much.

Thank you. Ladies and gentlemen, on behalf of Tips Industries Limited, that concludes this conference. We thank you all for joining us, and you may now disconnect your lines.