Tips Music Limited (TIPSMUSIC) Earnings Call Transcript & Summary

Ladies and gentlemen, good day and welcome to the Q4 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. Nikunj Jain from Orient Capital. Thank you and over to you sir.

Thank you, Michelle. Good morning, ladies and gentlemen. I welcome you for the Q4 and FY '23 Earnings Conference Call of Tips Industries Limited. To discuss this quarter and full year business performance, we have from the management Mr. Kumar Taurani, Chairman and Managing Director; Mr. Girish Taurani, Executive Director; Mr. Sushant Dalmia, Chief Financial Officer. Before we proceed with this call, I would like to mention that some of the statements made in the today's call may be forward looking in nature and may involve risk and uncertainties. For more details kindly refer to the investor presentation and other filings that can be found on the company's website. Without further ado, I would like to hand over the call to management for their opening comments and then we will open the floor for Q&A. Thank you and over to you.

Thank you. Good morning, everyone and welcome to the Q4 and FY '23 Earnings Call of Tips Industries. At Tips Industries, we have been working tirelessly to create and deliver high quality music that resonates with our audience. Our efforts are showing and I'm happy with the growth momentum that we have achieved. For FY '23, revenues have grown 38% and PAT has grown by 18% (sic) [ 19% ]. For '24, we are very excited as we see a growth of 30% in revenues and 30% in PAT. Let me repeat this for FY '24, we are very excited as we see a growth of 30% in revenues and 30% in PAT. We see the same level of growth continuing for 2, 3 years, as subscription also will become a larger part of our revenue. Let me give some background of the industry and then come to Tips. The Indian music segment grew by 19% to reach INR 22 billion in calendar year 2022 according to recent reports. This growth was largely driven by revival of film music with the opening of cinemas and release of over 1,600 films in 2022. Digital revenues continue to play a significant role in the Indian music industry generating 87% of total music industry revenues. The music streaming audience reached approximately 208 million, with the paid subscriber base of just around 4 to 5 million. However, platforms have started exploring the subscription-only model, which may provide an additional revenue stream for the industry. The surge in digital adoption across countries like Nepal, Bangladesh, Pakistan, Sri Lanka, et cetera, has led to increased uptake of popular international platforms like TikTok, YouTube, Instagram, et cetera, where Indian music is widely used. We are exploring new avenues to expand our reach and grow our audience base in these countries. Coming to Tips, we have had an eventful quarter. We have reported the highest quarterly sales growth in a seasonally lean quarter. We have also successfully completed a buyback of the maximum permissible amount in this quarter. And lastly, we have recommended a dividend of INR 0.50 per share post-split, so a comparable number will be INR 5 per share pre-split, which again is the highest ever in the company's history. The buyback and the dividend cumulatively bring our payout ratio to 60.8% for FY '23. On the business front, we have released 240 new songs during the quarter, including 141 new film songs and 99 non-film songs. Our content expense for the year has been over INR 62 crore compared to INR 32 crore last year. Our content expense has risen by 82% (sic)[ 95% ] over the previous year. Our latest releases including PS-1 have performed exceptionally well. Two songs of Freddy have crossed 55 million plus views and our latest release by Yo Yo Honey Singh, Yai Re, has crossed over 35 million plus views, Tujeh Dekhi Meri Aankhe (sic) [ Tumhe Dekhe Meri Aankhe ] and Gal Ban Jaye have also crossed over 20 million-plus views. Our YouTube subscriber now stands at 82.1 million. Our YouTube views for Quarter 4 FY '23 were about 33.6 billion, which was growth of 105% over the same quarter last year. We have been gaining market share consistently and have improved our rankings. We believe we are on our way to improving our rankings further. With this, I will hand over the call to Sushant to take you through the financial performance in detail. Over to you Sushant.

Thank you, sir, and welcome everyone to our Q4 and FY '23 earnings call. As you know, at Tips Industries, we charge off the entire content cost in the quarter of release. We have had this factor since the inception of the company and we will continue with this accounting policy in future as well. We find this to be the most prudent way of accounting for our business. Now let me take you through our financial highlights. We have closed FY '24 with the highest quarterly revenue of INR 52 crores in Q4 FY '23 as compared to INR 34.1 crores in Q4 FY '22. That is an annual growth of 52%. Operating EBITDA for the quarter stood at INR 26.4 crores versus INR 20.3 crores in Q4 FY '22. That is an annual growth of 30%. The operating EBITDA margins was at 51% for this quarter. In this quarter we have successfully completed a buyback of shares. The buyback was of the maximum size permitted by the Company's Act, which is equivalent to 25% of our equity capital as on September '22. Expenses related to buyback in this quarter were INR 68 lakhs. We have spent a total of INR 40.68 crores, including tax and expenses related to buyback. In this quarter, we have also had to take a tax charge related to the prior period amounting to INR 2.3 crore. Our profit after tax for Q4 FY '23 stood at INR 18.3 crores versus 15.9 crores in Q4 FY '22. The PAT margin for the quarter was 34%. Now for the full year of FY '23, revenue from operations stood at INR 186.8 crores compared to INR 135.6 crores for FY '22. This is an annual growth of 38%. Operating EBITDA stood at INR 102 crores for the 12 months ended March '23 versus INR 86.2 crores. That is an annual growth of 18%. Our operating EBITDA margins for FY '23 was 55%. We have closed this year with a profit after tax of INR 76.5 crores versus INR 64.5 crores last year and a PAT margin of 40%. Our bank balances and investments at the end of the year were at INR 117 crores. We have received a lot of queries regarding our content accounting policies and the resulting impact on our reported numbers since we follow the most conservative accounting policy in the industry. To address these queries, we have done some calculations to provide more comparable numbers and I would like to share this with you annually henceforth. If we were to follow the industry accounting practices of amortization of content cost then our EPS for FY '22 would have been INR 5.87 compared to the reported number of INR 4.98 which means that it would have been higher by 18% compared to a reported number. Similarly, for FY '23 the EPS would have been INR 7.91 compared to the reported EPS of INR 5.91, which means it have been higher by 34%. These per share calculations are post the share split. I hope this provides some more insight. Here, it will be pertinent to reiterate that we will continue to follow our accounting policy as we have been doing in the past. There will be no change in our accounting policies going forward also. With this I open the floor for discussion.

[Operator Instructions] We have the first question from the line of Sagar Jethwani from PhillipCapital.

First some words on the deals which you have recently signed with JioSaavn, can you -- JioSaavn and also Sony Music. Can you provide some color on it like what is the arrangement et cetera?

JioSaavn, we have not given them content last year FY -- sorry, December '22 when our contract was expired, so we were in discussions from that day onwards. Their management also changed and then they have agreed on our valuations and on the strength of Tips repertoire catalog, which is doing extremely well. '90s are in big demand. You can see in the last 2 years our '21 top line was INR 90 crores and this '23 our top line is INR 187 crores. So you can see the difference, in 2 years, we have become double, so our catalog is really doing well. '90s music plus new releases also doing well. So in -- after seeing all this they have approached us and in March around the 10th or 15th of March we have done a deal with them for 1 year. And then, again, it's -- the deal is good deal, and it's on parameters of the industry big players or whatever they are doing a deal with all the players, so same deal we have incurred with the MG also. There's a minimum guarantee also we'll get, so it's a good deal for Tips, and so we are doing -- this has happened. Plus, Sony Publishing, we were in discussion with them for quite some time. And Publishing is -- see, 200 countries international to control and monitor each and every content of your usage was very, very difficult. So we have done a deal with them for a little long time, for 5 years. And it's a deal where they will collect all our publishing revenues, wherever it is there wherever usage is happening. And we will get monies and every 6 months they will give us. Quarterly, they will give us some approximately report and then final report we will give every 6 months. So that is a deal we have incurred with Sony Publishing.

Good to hear that, sir. This is for the entire catalog for both Sony and Jio?

Yes, yes, entire catalog.

And sir, also, can you share your thoughts on the recent agreement between industries body like IMI and ISRA as to how it will impact us?

Yes. See, one thing and let me tell you that this deal of Sony Publishing is only international market, not in India. India, we do that publishing arrangement we have with IPRS, so that will continue. This is for international markets, all international markets except India. [Foreign Language] now as far as ISRA and IMI, we are a member. IMI is the association. We don't have to -- you just have to pay a small fee yearly to run that organization. That organization takes care of so many things. We have common things, common problems we have, so it's that kind of body, it's like association, it's not a revenue-earning body. As far as ISRA is concerned, we were also -- it's singer -- we -- in 2018, we have settled with composers and lyricist IPRS, there is a body I just told you, they have publishing rights. But in the 2012 when law came, law also came [Foreign Language] we have to pay royalty to singers but that royalty was assignable. We can take all the rights from singer and if you want to give him, it's on negotiation. But industry has followed that practice [Foreign Language] we can't do that, we have to have an outright contract lump sum we pay you and you please sign 100% rights to us. So that practice is continuing. But what you can say, to encourage artists or to do all this [Foreign Language] we are fighting, artists fighting, companies fighting, so we have worked on a formula on public performance, whatever we collect from public performance of that money, some percentage we have to give it to them. So that is a deal we have done with them. With the minimum guarantee of INR 50 crores going forward, it will be -- higher cap will be INR 60 crores. And this INR 60 crores or INR 50 crores will be distributed by all the companies on their public performance-based earnings. So that is the deal we have done with singers, ISRA.

Okay. Understood, sir. Understood. And sir, your presentation highlights the rise of digital ads. How has the ad rate moved in last 1 year?

See, ad rate was in between for 2, 3 months, it was flat. It was not increasing. But again, it has started increasing. And recently, I have seen the presentation, they are growing by 35%, 40% every year. Even this year, everybody was saying [Foreign Language] they are laying off people, this is happening, that is happening, but still their growth is tremendous. So I don't feel [Foreign Language] any problem will be there. And touch wood, we have also seen the revenues what we are seeing, so it's not any impact I see.

Okay. Sir, you touched upon the effective tax rate being at 34%. Do you see it normalizing back in coming quarters?

34% of what, tax?

PBT, yes. The tax was 34% of the PBT. That's the effective tax rate.

34%, how it can be? I think 22-plus something. Sushant, can you respond to this?

Yes.

So usually, the total tax amount divided by PBT, that's the effective tax rate I'm saying. So it was 34% as against earlier 25%, 26% range. So will it -- do you see it normalizing?

Yes, Sagar, I'll answer that question. Sagar, it included tax expense of earlier years, let's say, INR 2.3 crores. So let's say, the assessments of past years have been completed, so there were some charges so we have debited in this quarter. So if you remove that, then the effective tax rate would be around that 25%, 26%.

Sure, sure. My last question, sir. So what was the streaming revenue growth in FY '23 for us?

FY '24?

'23, FY '23, what was the revenue from streaming? How was the growth from that segment in FY '23 for us?

I feel it must be same 30%, 35%.

Okay, in line with the company?

Yes, yes. 75% business comes from there so it has to be similar.

[Operator Instructions] The next question is from the line of [ CA Garvit Goyal from Nvest Research ].

Sir, first question is on the potential of these current deals that we entered into like how we see these deals as a future revenue driver for Tips?

See, JioSaavn potential will be big thing. It will contribute to the top line and bottom line. As far as Sony Music is concerned, it will impact after 6, 8 months because it's a very -- we have to still give them the content, ingestion will happen, entire 225 countries content will go and everything will be seen. So it is a little longer term, 1 year to 1.5 years you can see the impact will start coming in. So it will come from day one but not that kind of a revenue, but we will see impact in next year you can say for Sony. Saavn immediately will start.

Okay, sir. And sir, can you give some more clarity on like court approved these radio broadcasts, shall we require to pay royalty to composers separately? So how do you see this impacting Tips in near term?

See, when we had done an IPRS in 2018 because of our internal fights, IPRS used to collect INR 40 crores, INR 45 crores, INR 50 crores. 2018, I think their top line was INR 40 crores, INR 50 crores. And now this '23, I think they are closing around INR 480 crores or INR 500 crores. So you can see the impact. So it's really growing well. And all the past settlement is also happening. They were not paying. There was a lot of court cases were happening. But recently you have seen the judgment. So according to that, if they are going for a further appeal in the higher court, Supreme Court or something like that, so again it will create -- we will be delayed by another 1, 2 years till Supreme Court gives this order. But in case if this order is final, [Foreign Language] we can expect industry revenue of INR 60 crores, INR 70 crores at least coming extra money is coming in IPRS.

No, sir, basically, that broadcast thing like radio broadcast was earlier not required to pay composers separately, so is it like, we are...

They were always used to pay but they have taken this. We are not -- we don't want to pay, but intentionally worldwide everybody pays publishing rights separately and our sound recording, master recording rights separately. So they were not paying to both. They were fighting with both the companies and they were misguiding courts usually, but ultimately court has realized [Foreign Language] no this is a separate right followed worldwide, so they also -- artists have to get royalty also.

Understood, sir. And that means if artist is getting the separate royalty and for some of our IPs are we the composers and sound recording label both for our IP?

This case won by IPRS -- sorry, we have also won in Hyderabad -- in Madras High Court, there was a case from industry PPL, we have also won that case. So if I calculate, I think for the sound recording industry also may get INR 80 crores to INR 100 crores extra, but not maybe they will go to higher courts. This is -- a fight is going on for the last 10 years, so I think it will still go for the next 3, 4 years, I feel; 2, 3 years, it will still take. But ultimately, we are very positive we will win. It's a right, they have to pay us. They are making money on our content. If they remove our content, what they will do? So they are not paying us money. That's not fair. So they have to pay and then they will pay from the beginning because our case is going on from the beginning, so that calculations will happen. I think industry will see an extra INR 150 crores, INR 200 crores coming in next 2, 3 years from these radio companies.

INR 150 crores kind of opportunity you're talking about, okay. Yes, sir, understood. And sir, what about your sustainable EBITDA margins going forward? Like you mentioned, we'll grow our revenues at CAGR of 30%. So I think if margins continue to fall, then the bottom line shall not grow at that particular fixed rate. So is it the correct understanding or I'm missing something?

See, what I see for next year is I'm growing 30% top line, 30% bottom line. So next year is for sure we are growing and I feel the way industry is shaping up, the way we have settled with ISRA, the way radio cases are coming in our favor, the way IPRS is growing and the way everything advertising is growing on digital platforms, so I feel [Foreign Language] this 30% to maintain for next 2, 3 years is not a big deal, we can really maintain and we are really pushing hard and working very hard to achieve these things.

So this means your EBITDA margins can sustain at this 65% level that we did in FY '23?

EBITDA, Sushant, can you respond to this, EBITDA, how we work?

EBITDA margins would sustain at these levels, yes, because both the revenue and the bottom line will grow at 30%.

Right, that's what I was asking. Right, right, right. And sir, one last thing is whether this time we will having the Tips Film's con-call or not?

Yes, we will have after this board meeting, Tips final results, after the final results, we will have a Tips Films call, yes, we will do that.

The next question is from the line of [ Ankur Kumar from Alpha Capital ].

Congrats for having a good set of numbers. Sir, my first question is on the content cost. So this year, it was around INR 62 crores, so what is our expectation for the next year on the content cost?

See, somewhere content cost should be around my expectation is between 25% and 35% should be our content cost and again it's depending upon the opportunity or the quality of music we can get of our liking, so we do a lot of that. We are not in hurry and we are not desperate to have content. So our repertoire is doing very, very well and I feel [Foreign Language] next 10, 15 years, it will be like that only, maybe a little more also and we are also doing a lot of recreations. So on new content, 25% to 30% we will invest. We have 35%, we have budgeted that way. So let's see what we can get or what kind of content we get.

25% to 30% of sales?

35%, yes, yes.

Of sales, okay. Okay. Basically, we just want to maintain our margins in such a way that our content will decide -- will go in sync with the sales.

Yes, absolutely.

Okay, okay. That's good to know, sir. And sir, on the growth side what kind of growth we expect? Because you have said that JioSaavn will also contribute this year, Sony will also start contributing 6 to 8 months down the line, so what kind of revenue growth can we expect?

30%, you can expect 30% top line, 30% bottom line we will maintain next year. We have budgeted that way.

How much will this 2 will contribute in terms of growth? These 2 ads on...

Actually, I can't say that's. That's a little confidential but -- I can't really say that.

Sure, sir. And sir, on 30% growth, so which are the things which will help us in doing, this is quite a good number, which are the things which will help us?

I feel everything is going well for us. We are really -- our content is really doing well on all the platforms, all the TV stations, all IPRS, publishing everywhere we are growing.

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

Congrats team for the wonderful results. Just a few bookkeeping questions. Has the PS-2 expenses been recognized this quarter?

Yes, we did that in March Q4, yes we did that.

[Foreign Language] fully?

Full, full, full.

Okay, okay. Sir, also, second question, I mean I remember you telling us that your market share was for the whole it was around 7 -- 6%, I mean do you have any numbers on what it is now at the moment?

Yes, I think in this -- if you see my presentation, what we are seeing [Foreign Language] calendar year industry figures was INR 2,200 crores, so according to that we are around 8% now.

Okay. Also, what is the paid subscriber growth for the streaming services like Spotify and Saavn? Do you have that number, FY '22 [Foreign Language]?

'23, 20 billion [Foreign Language] last year, I think, it was around 17 billion.

Paid subscribers?

Paid subscriber [Foreign Language], it's only 4 to 5 million.

What it was last year, FY '22?

[Foreign Language] 4 million, this year, 5 million.

The next question is from the line of Saket Mehrotra from Tusk Investments.

I had a couple of questions. First Sushant, if you can explain this tax adjustment on the P&L. I was not very clear on this, so if you can just give some color on what this is?

Saket, these were, let's say, INR 2.3 crores, pertains to tax assessments of prior years, let's say, prior 3 to 4 years tax adjustments post, let's say, the assessment getting completed.

So this is related to -- okay, some matters were, let's say, under litigation or something and this is the adjustment that has come through.

Yes.

Okay. Secondly, Tauraniji, going forward as you said 25% to 35% is the content cost that you are working with, plus whatever opportunity you see in terms of getting new content. So just to understand, I mean our approach will always be to step up this cost, right?

Content cost?

Yes.

It's depending upon the opportunity. [Foreign Language] yes, of course, why not.

Okay. And sir, [Foreign Language] for publishing, I think a few years back we had a similar deal with Warner as well, right? Are both of these deals similar or [Foreign Language] I'm just trying to understand how does Sony bring value alongside we already having Warner?

Yes. Internationally, [Foreign Language] Universal, Sony, Warner and Merlin, [Foreign Language] at present we are dealing with 3. All 3, we have different, different deals. And see, I told you earlier also we have 2 businesses. Basically, music [Foreign Language] to achieve 225 countries or 200-plus countries was very difficult. [Foreign Language] so we were trying [Foreign Language] approximately, so INR 2 crores, INR 2.5 crores I should get from publishing also extra. [Foreign Language] every publishing, including YouTube and all that we do through IPRS. [Foreign Language] like Spotify, Apple, Amazon and there are many apps in the international markets like in Dubai [Foreign Language] Anghami [Foreign Language], Deezer, Napster, [Foreign Language] they have paid us MG plus [Foreign Language] profit sharing, some commission they will charge and all the balance monies they will credit against MG and after adjusting of MG, we will get overflow also. So that is the deal with Warner. And it was only for Hindi repertoire with Warner.

And this was both for sound recording and publishing or just publishing?

No, no, only sound recording. [Foreign Language]. So publishing with Sony and sound recording international apps with Warner.

Got it. [Foreign Language] as far as YouTube is concerned you are doing everything in house. [Foreign Language] WMG is doing for you only for Hindi and Sony is doing for everything for publishing?

Yes, absolutely.

Okay. And this WMG deal is for 2 years or how long [Foreign Language]...

It's expiring in March '24.

March '24, okay. Got it. I think a few of the other participants also mentioned [Foreign Language], even I was reading IMI, ISRA [Foreign Language], so going forward [Foreign Language] in the last 2, 3 quarters I saw was there any stress related to ad rates or anything, because I think the ad spends [Foreign Language], have you experienced the same and what's your outlook on this?

[Foreign Language] touch wood is doing well. [Foreign Language]. Even I feel [Foreign Language] maybe that's going on but I don't feel that problem is there.

Okay. And sir, any readability in terms of...

Sorry to interrupt, Mr. Mehrotra, I'm sorry to interrupt, sir, there are many other participants who are waiting for their turn. I request you to rejoin. The next question is from the line of Priyankar Sarkar from Famy Ananta Capital.

Sir, I just wanted to divide the growth into 2 segments, if possible. One is the existing old catalog, let's say what was the catalog 2, 3 years back and the new content, right? So I wanted to know what is the growth of the existing old catalog, what is that growth rate seen for this year?

See, we have a major growth in the old repertoire and old -- our '90s repertoire is -- and plus also so many films we have released over last from '90s end till '22 also. So all are doing really well. Our catalog is doing really well and new films and new big investments we have started from this year onwards in the month of -- we released PS-1, PS-2 and Freddy, these 3 movies, 3 big movies we released. So it will take little time. And our expectation as we always maintain [Foreign Language] new releases, we feel we will recover our investment in 4 to 5 years' time, so that catalog is really doing well.

So sir, you are saying it's 37 -- close to 38% growth most of it is coming from the existing catalog?

Not entire.

[Foreign Language].

[Foreign Language] mostly.

We can put 30% at least?

[Foreign Language].

30% from the new catalog what you are acquiring now, so that broad split we can do?

See, I have -- see, we released PS-1 in September and Freddy will release in December and PS-2 will release in March. It's too early to specifically say any number, but...

[Foreign Language], sir, I'm saying existing, let's say '21 [Foreign Language], I wanted to know that, sir?

Yes, yes, I'm saying [Foreign Language] catalog is really doing very well. I'm telling you this, this entire growth what you are seeing is that, but -- and new releases in case if we compare with the cost, we have incurred so we don't have that calculation but we'll give you. Let us at least spend a year on these releases to know [Foreign Language] how it's faring, so it's too early to count. But one thing Priyankar [Foreign Language] we are writing off in the same quarter so we don't have after writing off what numbers we are showing, after writing off entire whatever we release, we invest and we release that same month we write off, the same quarter you can say. So we'll tell you this in the next quarter's call.

The next question is from the line of Yogesh Tiwari from Arihant Capital Markets Ltd.

This is Yogesh from Arihant Capital. Sir, am I audible?

Yes, yes.

Sorry to interrupt, sir, your mic, I mean...

Yes. So, I had one question, basically 2 questions on the balance sheet. So if I look at the other current liabilities, it has increased by -- from about INR 1 crore to INR 36 crores for March '23, other current liabilities. So if you can [Foreign Language] what would be the reason for INR 1 crore to INR 36 crores, other current liabilities?

Sushant, can you take this question?

Yes, primarily, these are advances from customers what we receive.

Okay. Taurani sir, what I understand as you told me that it takes about 4 to 5 years to recover the investment made in a purchase of our music right, am I correct like a payback period [Foreign Language]?

Yes, it would [Foreign Language].

Okay, nonrefundable.

We don't have to refund. These are MGs we have received from parties which we account [Foreign Language] every quarter they give us numbers, [Foreign Language] we issue invoice and we book that.

Okay, okay, sir. [Foreign Language] so it takes about 4 to 5 years [Foreign Language] that would be approximately, correct?

Yes, we expect that, yes.

The next question is from the line of Swapnil Chhabra, an individual investor.

[Foreign Language]?

[Foreign Language].

Right. [Foreign Language]?

[Foreign Language].

[Foreign Language]?

[Foreign Language].

[Foreign Language]?

[Foreign Language].

It would be both, sir. [Foreign Language].

[Foreign Language]. Sushant, just take with he or somebody. [Foreign Language].

[Foreign Language]?

[Foreign Language] and we will share and we will start advertising on those also, but still companies have not done that. [Foreign Language] process of our business.

Mr. Chhabra, I'm sorry to interrupt, sir, I may request you to rejoin the queue. The next question is from the line of Ankush Agrawal from Surge Capital.

Tauraniji, again, [Foreign Language]?

[Foreign Language]?

[Foreign Language].

[Foreign Language].

[Foreign Language]?

[Foreign Language]. We have a lump sum deal with it [Foreign Language] we are negotiating with them [Foreign Language] you will have to pay us more, so let's see [Foreign Language].

[Foreign Language] and Sony is for publishing rights, so typically publishing rights contributes a very small amount compared to sound recordings. So [Foreign Language]?

[Foreign Language].

[Foreign Language]?

[Foreign Language]?

[Foreign Language]?

Yes, yes, we got an upfront advance, it's a refundable advance we got. They have given us some advance but it is refundable [Foreign Language] and -- but what I feel [Foreign Language] we will get overflow also from there.

We have the next question follow up from the line of CA Garvit Goyal from Nvest Research.

Sir, you mentioned this deferred tax were due to some litigations, so are there any such litigations that you are getting expected for which we have to pay further tax in coming years?

Sushant.

No, there is no further tax provision of early years which are pending now.

All clear. [Foreign Language].

The next question which is a follow up question is from the line of Ankur Kumar from Alpha Capital.

Sir, on the question on YouTube Shorts only, so what -- how much can we bifurcate [Foreign Language] on the YouTube side?

[Foreign Language]?

Yes, sir.

[Foreign Language].

[Foreign Language] 15% quarter-on-quarter, so is it like reducing and are we worried on that front?

No, absolutely not. [Foreign Language] So content consumption, maybe he is not listening on a full track but [Foreign Language] half an hour, we invest on [Foreign Language], now estimate is around 3, 4 hours we are spending. So [Foreign Language] you will see music, you will see film, you will see short content. [Foreign Language] it is depending upon that, but [Foreign Language] if you see everywhere we have a growth. So touch wood, we are -- I am not [Foreign Language] no concern has come, it's doing -- all is good.

Got it, sir. And last question, [Foreign Language] like -- it's like it sustains for a few quarters and then a big jump comes. So like last 3 quarters were at around INR 50 crore and [Foreign Language] last 4, 5 quarters, we were at around INR 30 crores odd, so what is it that suddenly we sustain for 3 quarters, 4 quarters and then it jumps up and when do you expect next jump up to come, sir?

[Foreign Language] I think it is becoming more organized [Foreign Language] for this year, we are predicting [Foreign Language] the way I see, the way business is growing I feel easily 30% is achievable [Foreign Language].

The next question is from the line of Saket Mehrotra from Tusk Investments.

Tauraniji, what I was asking was any sense on -- any visibility on content for next year in terms of [Foreign Language] and on that front if you could like tell us a few things?

We have recently acquired 2 films from Balaji Telefilms, okay? [Foreign Language].

Plus regional would be Merry Christmas and Ishq Vishq, right? [Foreign Language].

Yes, Merry Christmas, plus in regional we have recently this quarter, we have acquired a film from the Zee company, [Foreign Language]. We are also producing 2, 3 Marathi movies this year, so [Foreign Language].

Okay. Sorry, one more thing. Sir, any update on the SEIS income?

Which income?

SEIS income?

I can't get. [Foreign Language] which income? Hello?

Mr. Mehrotra, can you please repeat your question? As the current participant has left the queue, we move on to the next question which is from the line of Sagar Jethwani from PhillipCapital.

Sir, I just have one question more. So what percentage of content is to be monetized on the YouTube? So suppose say [Foreign Language]?

[Foreign Language].

Okay. [Foreign Language]?

[Foreign Language].

[Foreign Language], I'm just asking you for an example [Foreign Language]?

[Foreign Language] let us see if we can work on this. Sushant, please note this. See if we can work on this and if we can give them next quarter or next to next quarter.

Noted, noted.

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

Tauraniji, [Foreign Language]?

Sir, I'm sorry to interrupt, I would request to use your handset please. The voice is not proper from your mic, sir.

Is it better now?

Yes, sir, please continue.

[Foreign Language] so what kind of content cost you are targeting for FY '24?

[Foreign Language].

[Foreign Language]?

Yes.

[Foreign Language]?

Yes, maybe. What was that?

[Foreign Language].

[Foreign Language].

Ladies and gentlemen, in the interest of time, that was the last question for today. I would now like to hand the conference over to Mr. Nikunj Jain for closing comments. Over to you Mr. Jain.

Thank you, participants, for having us today. It has been a pleasure. If there are any further questions or queries that we have not been able to answer, please feel free to reach to Orient Capital team. Thank you and have a good day.

Thank you.

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