Tips Music Limited (TIPSMUSIC) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Q4 and FY '24 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, Muskaan. Good evening, ladies and gentlemen. I welcome you to the Q4 and FY '24 Earnings Conference Call of Tips Industries Limited. To discuss this quarter's business performance, we have from the management, Mr. Kumar Taurani, Chairman and Managing Director; Mr. Girish Taurani, Executive Director; Mr. Hari Nair, Chief Executive Officer; and Mr. Sushant Dalmia, Chief Financial Officer. Before we proceed with this call, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risks and uncertainties. For more details, kindly refer to the investor presentation and other filings that can be found on company's website. Without further ado, I would like to hand over the call to management for their opening comments, and then we can open the floor for Q&A. Thank you, and over to you, sir.

Hi. Good evening, everyone, and welcome to the Q4 FY '24 Earnings Call of Tips Industries. During FY '24, we distributed a total interim dividend of INR 6 per share compared to INR 0.50 per share in FY '23. The Board of Directors have announced a buyback of shares. The promoter family has decided to abstain from participating in the buyback. Therefore, the amount -- the entire amount of INR 37.19 crores, excluding taxes, will be distributed amongst minority shareholders. That we are able to reward our shareholders in this manner is a matter of pride for me. I thank and appreciate our team's work, which reflects in our financial performance. We have been producing and acquiring non-film as well as film music rights. Our in-house productions will come from Tips Films, and we will selectively acquire quality music rights from the other producers as well. We were not getting good quality music last year. And even if we got it, the prices were extremely high. We will pick quality music at the right price. Hence, our investment in the content fell short by approximately INR 15 crores, INR 16 crores. Tips will always focus on buying, producing and delivering quality music. For FY '25, we expect investment in content to be higher than last year, but it also depends upon availability of quality music, price that is being demanded, release calendar of films and other factors. Now I'll ask our CEO, Mr. Hari Nair, to share his thoughts. Over to you, Hari.

Thank you, sir. Good evening, everyone. So as you see the global IFPI report, the average growth rate of the music industry is about 10%. Similarly, there was a report from EY Media & Entertainment, I think, that also projected the same numbers. We have done better than the global and the local average. We look forward to repeating this growth rate in FY '25 also. Last quarter, we entered into a new global exclusive contract with Warner Music Group, and that strategy improved the scope of our digital distribution across India and globally. We have also set up new brands and partnership division to further fuel growth of our business. Audio electronics brand, boAt, used our song Hai Rama to promote their new headsets, which also featured Ranveer Singh. Our catalog continues to be in demand. And our recent film music of Crew was trending on YouTube, Spotify, Saavn, and continues to be in charts. Radio broadcasters are also playing the song on repeat. I'll hand over the call to Mr. Girish to provide insights on our content business. Thank you.

Thank you, Hari. We've added 179 new songs in Q4 of FY '24, bringing the total songs released in FY '24 to approximately 733 as compared to 896 last year. This time, the focus has been much more on quality songs. We released the music of the film Crew; and all 3 songs, Choli Ke Peeche, Naina, Ghagra, are among the top 10 trending across all major platforms. Sona Kitna Sona Hai is also picking up on the streaming services. The non-film songs that we released last quarter are Sabki Baaratein Aayi 2, Jab Tum Samne The and devotional song Tere Bharose Guru Ji. All are doing decent numbers as per our expectations. Our catalog song Dil Laga Liya from the film, Dil Hai Tumhaara, crossed 1 billion views on YouTube. This marks a very significant milestone for us. On a regional music front, Telugu music from the film, Hanuman, continues to trend and stream across all audio platforms. Similarly, we had a good run with new Bhojpuri and Rajasthani releases. This showcases diversity of success we had with our music production and acquisition. Last quarter, we signed an independent artist, DJ Flipside, exclusively for producing our remixes. He's a young and talented individual from the South. We have aggressive plans for film music content acquisition in FY '25. We will also invest in independent music, sign up talent as well. Now I'll pass on the call to Sushant to discuss the financial performance of the company. Thank you.

Thanks, Girish. Welcome to the Q4 FY '24 Earnings Call. I'm delighted to share the financial highlights of this quarter, reflecting the strong performance of the company. Our revenue for this quarter amounted to INR 63.26 crores compared to INR 52.01 crores in Q4 FY '23, resulting in year-on-year growth of 22%. The other income of INR 5.33 crores include one-time income of INR 1.7 crores from SEIS scheme. Secondly, the employee expense of INR 4.7 crores this quarter includes one-time ex gratia payment to employees of around INR 1.2 crores during the quarter. Operating EBITDA for the quarter reached INR 30.2 crores, showing an annual growth of 14%. Our PAT for the quarter was INR 25.85 crores, a notable increase of 41% from INR 18.36 crores in Q4 FY '23. Content cost for the quarter were INR 23.95 crores, up from INR 18.95 crores in Q4 FY '23. Now moving on to the FY '24 highlights. Revenue for FY '24 reached INR 241.6 crores, up from INR 186.8 crores in FY '23, demonstrating a growth of 29%. PAT for FY '24 stood at INR 127.2 crores compared to INR 76.52 crores previously, marking a growth of 66%. During FY '24, the company has declared a cumulative interim dividend of INR 6 per share, which brings the payout ratio for FY '24 to be around 60.6%. With this, I conclude my opening remarks and open the floor for Q&A discussion.

[Operator Instructions] First question is from the line of Garvit Goyal from Nvest Analytics Advisors.

Am I audible?

Sir, you are not audible. Can you speak a little louder, sir?

Speak loudly, please. Yes, let's proceed and see how it comes.

I'm audible, right?

No, sir. You just disconnect and connect again, please, sir. The next question is from the line of Ravi Naredi from Naredi Investment.

Sir, how many films released in quarter 1? And what are content costs of song in quarter 4 of these films, which we have released?

Quarter 4, we -- I think we have done around INR 22 crores, INR 23 crores. Sushant, please tell me what is the exact number?

INR 23.95 crores in Q4.

How much, it's 3? Sir, I could not listen.

Around INR 24 crores, approximately INR 24 crores.

INR 24 crores. Sir, any more movies planned in quarter 1 of financial year '25?

Yes. Yes, we have some plans. Ishq Vishk is coming in quarter 1. So that will release.

Sir, a very interesting point to this our company, paid streaming revenue in our top line and what plan you give for next 2 years for paid streaming? How much we will receive and how it is going on, how the industries will gear up for paid streaming? Can you tell through what because you are the leader in this industry, so you can guide in completely?

I think industry -- music industry worldwide is doing well. And the same will be in India also, industry is doing well. Everybody has a growth. But I think we will be a little different than others as our repertoire or whatever we have done so far is really doing well. Our repertoire we -- whatever we acquired, started acquiring from 1988 until 2023, you can say, doing pretty well. So I -- as committed earlier, this year also, I will keep 30% on top line and 30% on top -- as you see this year, bottom line is, compared to last year, is 66%. So -- but still, we feel on 66%, we will do another 30% this year as well. So I'm targeting myself for that. And really, we will all do hard work, and I believe we will achieve that.

Understood, sir. But paid streaming, can you tell a few more words about that?

Yes, paid streaming is increasing. Day by day, it's showing a progress. And all the focus of all these platform companies like Spotify or Wynk or Gaana, all those, their focus is on the paid, to increase paid buy. So I think that's a good thing for the industry. But as mentioned earlier, it will still take 2 to 3 years more to have very good numbers to see.

Right. Sir, in quarter 4, net profit margin is 41% versus 53% in quarter 3. So what estimate we may take for financial year '25?

'25, see, now you can calculate whatever our entire year's bottom line, you calculate 30% on that. Our target is to achieve that. So we will try and achieve that.

Net profit margin?

Yes, yes. You are talking about PAT, I think.

The next question is from the line of Pallavi Deshpande from Sameeksha Capital.

I just wanted to understand, was the cost -- this acquisition cost lower also like you said? Was there any change in the in-house versus outside of movies or anything in that, that helped us to have lower costs? Because the number of songs released is nearly the same, yet the cost is lower, sir.

No. Pallaviji, we are focusing to acquire a good quality content, and our budget is same. Maybe our target is -- maybe we will reduce further. And maybe this year, we will do only between 150 -- so approximately 150 songs. So we are not going to reduce amount, but we are improving our quality and there going for bigger numbers, bigger artists and bigger those things. So I feel, keeping that budget in mind, we will produce better songs. So I think -- so there is a -- from this year onwards, our focus is on quality rather than quantity.

Right. So even last year was something like that, but yet we did 740 songs. So just understanding, from 740, we'll go to 150. Is that the right number?

Yes, I feel it's the right number. I'm not focusing on really a hardcore number. Maybe it will be for 140 or 170, that depends upon how -- whatever we are acquiring. We are acquiring some films and some film has 4 songs, some film has 8 songs. So we can't say the exact number, but approximately I told you that.

Right. And then in terms of the number of movies per song acquisition, that would also be 3 to 4 Hindi and total 10 to 15 songs?

I think our target is to...

10 to 15 movies, sorry.

Target is to actually to acquire Hindi, Tamil, all languages put together, around 8 to 10 films, yes. And average should be 5 songs per movie. So 50 songs, we should get from film side, that's the idea.

Right, sir. And sir, there was this news about this Varun Dhawan and David Dhawan tie-up with Tips, released on October 2. So have we already paid for that? Have we got purchased the music rights for that one?

That is our other company, Tips Films has signed them. We have not done any deal about that with the company. That will happen in due course.

And sir, will that film be on profit sharing? Because then I wanted to understand how does the music right acquisition work if it's on a profit sharing?

What we have done is, we have done now, we have appointed a valuer, a government-approved valuer, and he has given us a formula. On this basis, you can acquire, you can do transaction with Tips Films. And our Board auditors and the plus Board has also approved that entire policy, what we have made. And accordingly, we buy music from them.

Right. And sir, lastly, on this Warner Bros. deal for the global music rights, just wanted to understand that a little better. Right now, how has it been then accounted for? Because now you have Warner for global, but till now, how was it being done?

See, Warner, we had a smaller deal in 3.5 years back, and now we have done a next deal with them. And so we have given them all existing audio streaming services, platforms and 1 or 2 other things. And we have done a deal with them on an MG basis, minimum guarantee we will get, and we will get every year's monies upfront. And then they will keep sending us -- every quarter, they will send us reports. Every month, they will give us a report and finalization of all 3-months report will be combined, and we will show those figures in the books. And whatever monies we got, that will be as a non-refundable advance will be with us. So that is the arrangement we have done with them.

And sir, till now they were only doing domestic and now you are doing with them international as well, is that right?

They were earlier also doing domestic and international. And now we have given them a few more platforms where they can do international and India, both.

Next question is from the line of Aashish Uplagaonkar (sic) [ Aashish Upganlawar ] from InvesQ.

Sir, regarding this deal with Warner taking it further, so I believe the payouts are a bit amplified versus what it was earlier. So does that, in any way, change the trajectory of top line and earnings for you? Or that 30% in CAGR, which you have been guiding, that was keeping in mind the amplified payouts that will happen with this deal?

The 30% including this deal, yes, because it's the same thing. If we do directly or do through Warner, it's the same thing. So it's including whatever we are guiding, 30% year-on-year, it's the same thing, including Warner as well.

Okay. And on the content side, I think this quarter, I understand that you have been saying that one should look at it annually. But was there one-off increase in the content for this quarter? Because it's, I think, almost 45% of the annual [ content that's ] written off in this quarter. So is there anything which is one-off or higher?

I think it can happen in future also. Please understand, content is not in my hand. When producers decides, I want this Crew on 29th March, so I have to release that in February. If they say, hey, I'm going to release in June, so it could have gone to the next quarter. It could have been further inflated the profit. But I think it's applicable for the entire industry, not only with the Tips. So whenever producer writes his film, sometimes it's come early, preponed by 1 or 2 weeks. And sometimes it goes to -- maybe they can delay by 1 quarter or 2 quarters also. So these are the regular happenings in the industry. So we follow that.

Okay. And sir, so in past few years, you have been exceeding the delivery on revenues and profit versus what you have been guiding, though you have been guiding that 25%, 30% kind of growth. So I mean, are there possibilities there that something might expedite versus what we think right now, I mean, maybe the pay model clicks earlier than what we are thinking right now? Is there anything on the ground to suggest that these delivery on growth for you would be higher than what you're anticipating right now?

Aashish, it can happen. Really, I'm very positive about our business for -- really, it can happen. And we are really pushing from all the sites. Recently, we have -- Mr. Hari has joined us last 6 months, and he has also brought in many good people. And we are also concentrating on other businesses rather than regular businesses. We are talking to brands, we are talking to sync, there is a lot many other options as well. So we are doing that. And this is 30%. 30%, I think it's safer. But whatever happens this year, we have a bottoming of 66%. So -- and now our next year will be, I'm trying and I'm very confident it can happen, on 66%, we want 30%. So our target is like that. So I think it's already showing our reports. If you see from INR 90 crores in '21 till INR 241 crores this year, in 3 years' time, so I think whatever comes, it comes, yes, and we are pushing it. We are targeting ourselves for 30%. But if it happens more, we are absolutely ready and aiming for that.

Yes. Okay. Lastly, sir, on the -- you said that the industry is trying to get into the pay model. But if we understand correctly, the bigger platforms still are not pushing it as much. I mean I understand Spotify and others are doing that, but the bigger platforms are still not doing that. So is there anything to suggest on the ground that they would also fall in line with the effort that others are putting in?

See, there is a -- recently, there's an event happened of Spotify. Spotify is #1 today. And I think in the stream service, Spotify must be 45%, 50% of entire [ pie ]. So they have -- recently, they have celebrated 5 years in India, and they have announced publicly, hey, our next focus for next 5 years will be, we want to convert at least 60%, 70% this market as a paid market. And they have done that successfully in overseas. So I feel if platform is saying and they are focused and they also know they also need growth, and they also know they also have to provide us growth, so they will focus on that. And if you see, recently if you go on YouTube or if you go on Spotify, they trouble you a lot, and they push you to be a paid subscriber. I think that's happening well. It's converting. It will take a little time, but I think we will see good numbers in future.

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

Tauraniji, a couple of questions on this Warner deal. So I think in one of the recent interviews, you have said that in New Delhi, our MG spend is more than the earlier deal. So I wanted to understand [Foreign Language] we were looking just at MG?

Actually, [Foreign Language] but maybe they won't -- maybe for a profit, will push [Foreign Language]. But touchwood, they have recovered their money. They have done entire profit and we are getting overflow. Yes, we are getting overflow on that deal as well.

Okay. And for your new deals, [ Foreign Language] like last, I think, was 3, 3.5 years, this new deal is about?

New deal is approximately around 4 years.

4 years. Okay. And MG is like constant [Foreign Language] year-after-year?

MG constant there. [Foreign Language] If we surpass that MG, immediately overflow kick in. [Foreign Language]

And the split, 85-15, right?

Yes, yes.

Okay. Another question for [Foreign Language] like now since all the platform deals, like excluding YouTube -- I'm assuming YouTube is not into this, right?

[Foreign Language] So we have given them 5 small channels.

Okay. So [Foreign Language] regional content we have given to Warner and YouTube as well.

Yes, yes, yes.

So sir, [Foreign Language] because Warner will be dealing on our behalf with everyone, like from Spotify to all the streaming platforms. [Foreign Language]?

Ultimately, [Foreign Language] Main is a content game. The distribution is a secondary thing. [Foreign Language] they also approached us directly. We have not gone to them. They approached us directly, why don't you come directly with us? But we felt very comfortable, and we are getting upfront MG for 4 years. So we felt like going this time with Warner is very good and we'll see that in future what -- if we want to change that.

Second question, sir, like till now some of the platforms like, say, Gaana and JioSaavn, we were not there because we were trying to negotiate hard to get the right price for ourselves, right? But now since Warner would be doing that and they would be looking at it a more larger deal, like a consolidated deal [Foreign Language]?

[Foreign Language] Warner being an international big player [Foreign Language]

[Foreign Language]

[Foreign Language] So we are really -- still I feel we are holding 65% of our business ourselves.

[Foreign Language]

[Foreign Language]

Lastly, sir, just an accounting clarification. So our noncurrent liability has jumped to about INR 70 crores. So I'm assuming MG [Foreign Language]?

Yes, yes. [Foreign Language]

Noncurrent liability is INR 70 crores, but [Foreign Language]

[Foreign Language]

The next question is from the line of [ Suraksha Jain ] from BMS Wealth.

Sir, this is Suraksha. Sir, my first question is in terms of the content cost for next year. So what I understand is what you said is we will be releasing 150 songs, right? And the content cost would be similar to this year's level, like INR 70 crores to INR 75 crores kind of, is what we're planning to invest in content next year, sir?

Yes, we have a budget of INR 75 crores, INR 80 crores. [Foreign Language]. Yes.

Okay. And sir, in terms of our employee cost, even if you exclude the one-off that we have, there is a slight jump in the employee cost. So can we assume that as the new run rate for the employee cost going forward, sir?

A little bit will be here and there, very nominal. It won't affect much, but it will go up because we need a few expensive people. And we did these new businesses, we are getting more aggressive in that. So we need a few people. So we're hiring those. And already, I think hiring is already almost complete, maybe 1 or 2 person will come in more.

Right. Okay. And sir, another question was, we have a short-term investment of INR 91 crores. So if you could just help us understand what kind of instruments you are holding in the short-term investment?

Sushant?

Can you repeat your question? Sorry.

I just wanted to understand the details of how short term like current investments of INR 91 crores that we have on the balance sheet.

Yes. So primarily it's into mutual funds, debt mutual funds. And towards the shorter end, let's say, it's liquid and short-term funds.

Okay. And could you also share the details of the investment property that we have? Where exactly this property and the valuation or some numbers, something around that?

Which property?

You have an investment property of INR [ 110.1 ] crores. Is it...

Investment property, it's old one, let's say, around that INR 11 lakhs. That is primarily, let's say, the industrial galas, old galas which we have. And the current market value would be around that INR 4 crores of that.

Okay. And Taurani sir, just 2 more questions to you. So paid streaming, you said it's going to become very big going forward in next 5 years. What I understand currently, for us, the paid streaming revenue has not started coming in, right?

Paid streaming is coming, but it's not coming -- small money, but that's coming.

Okay. So I assume it will be less than 5% of our overall revenue? Or is it like you could get some percentage in terms of percentage?

It could be that much, yes.

Okay. And sir, your Warner deal, what I understand is your MG [Foreign Language]?

Yes. [Foreign Language] MG divided into -- first part was a little bigger and then other 3 parts. Every year, we will get that.

Okay. Okay. Plus the overflow?

Plus overflow, yes. Yes.

The next question is from the line of Abhishek Nagaraj from Alts Wealth Private Limited.

This is regarding the deal with Warner. There is a minimum guarantee, but is there any protective clauses around increasing the minimum guarantee once the entire industry also goes behind the paywall? This is one of my first questions, and then I'll follow up with the rest.

No. I think whatever we have done is a fixed lead, and we have properly projected our 4-year revenue. We have kept all those things in mind. And we have entered a number, we negotiated and we closed with one number. And if we enter more than that, if number goes more than that, immediately, overflow will start.

Okay. Understood. The second question was on, say, for example, if we estimate that we'd be earning INR 100 on a particular piece of music that we own, how much of that comes in the first year, second year and the third year, if you can give some guidance on that?

Please repeat that.

So basically, on the lifetime value of the music that we own, say, let's say, we are earning INR 100 on a particular song that we own, how much of that actually translates into revenue in the first year and the second year and the third year? Like I'm assuming there will be a rundown, right? Like after a couple of years, the revenue from that particular piece of music comes down over time. I just want to know what is the guidance on that?

See, what I feel, earlier, we used to decide that this new song is, after 6 months, it's a catalog song because we used to recover investment in 3, 4 months' time. And now what I feel, see, whatever we invest, we will recover our money in 4, 5 years' time. But still, we write off our entire content cost acquisition, same quarter. You know that, I feel. We don't carry forward anything. We just write off everything in the quarter we released our content. So we don't have any liability. So that way, we feel safe. It's our kind of a business. But I assume in case -- if I'm recovering my money in today's time, the competition is too much, in 4 to 5 years, actually, mentally, I want to come back my money in 2 to 3 years. But for investors' sake, I feel 4 to 5 years is safer, is a good investment, and we do deals that way.

Okay. Got it. Also, you were mentioning about the new businesses that you're looking to set up, if you can give some color on that. What are the new businesses like? How are we looking at the revenues and the costs that will get impacted once this is stable?

Actually, it's not a new business as -- we do business, that brands and the sync rights of any movie or any brand to take our strong. So we are -- earlier, we used to fulfill whatever query we'll get. But now we have appointed a team. They will go to each company, and they will talk to them and maybe they can bring some business. So that we are trying to do more.

Understood. Last question is from a perspective that the company has been paying out significant dividends and buyback. One, from a perspective of tax efficiency, dividends and buybacks are not typically considered very tax efficient. Is there any thought process of the management to probably recapitalize or probably distribute bonds to shareholders, which would then become tax-deductible expense at the hands of the company, which again goes on to increase shareholder returns? Or is this the policy that we would want to continue with dividends and buyback themselves?

Maybe we can consider this. Sushant, can you say something about this?

We will, let's say, look into it. But let's say, currently, we will continue with dividends and buybacks. But since you brought to our notice on this, we will check with the consultants and circle back.

I've done some analysis on this, and I'm happy to share it across offline. And if it's of interest, that is something that we could look at in the benefit of everyone.

Sure, we'll definitely look at it.

The next question is from the line of Mythili Balakrishnan from Alchemy Capital Management.

Sir, I had a couple of questions. One is what would be the mix between your digital streaming kind of revenues versus your non-streaming?

That's same, 75%-25%. So 75% is digital and 25% is [ online ].

Got it. So both the businesses are sort of growing at a similar pace?

Yes, yes.

Got it. And share of YouTube, if you could sort of indicate in the overall streaming part of the pie?

Sushant, how much is YouTube? I think 50%?

Yes, between that 45%, 50%.

45%, 50% of overall revenues?

Yes.

Yes.

Got it. I just wanted to get a sense of this content cost because earlier, we were indicating 30% of our top line we would do. But in the year coming ahead, it looks like we are aiming a lower number, right, around 25% odd?

Actually, still, we are -- if we get a good content, so then we will do 30% also. We will go for 30%. 25% and 30% is our target. We'll invest that much money.

In content. And just to get a sense of the schedule, right, we talked about Ishq Vishk which is there in Q1. But there was also other movies, right, Buckingham Murder and stuff. Has that gotten delayed?

Which one? Which one?

There was some Ekta Kapoor...

Buckingham Murders, that is coming in second quarter, yes, yes, yes.

Okay. So that has got a little delayed and pushed out. And in terms of any other key names that we need to keep in mind in terms of the timing, et cetera?

We were discussing with a few producers, so it will come. We'll tell you in next quarter, we'll keep on telling you.

Got it. In Warner deal, I just wanted to get one clarification. This number that we have sort of recorded in current liabilities, this is just for the first year, right?

Sushant?

Or else for all the 4 years?

No, no, it's the first year. But Sushant, clear that, please.

Mythili, firstly, you have to look at the both numbers, noncurrent and current. Let's say there is INR 71 crores in the noncurrent, that is also pertaining to advance. And let's say, there is INR 64 crores lying in the current market, other current liability. So you have to look in from an advance perspective, you have to look both the numbers.

Okay. So INR 71 crores in the noncurrent and INR 64 crores in the other current?

Yes, yes.

So this is the total which is there for this particular year, right, FY '25? Or does this also pertain to the years ahead?

It would pertain -- noncurrent would pertain to the years ahead also.

Got it. And how will you recognize it, sir? How does the recognition happen? Every quarter, as the...

Quarter-on-quarter, they will give us reports. Accordingly, we'll do that.

Got it. And the overflow, it is 85%-15% in our favor, right? 85% for us and 15% for them.

Absolutely. Yes, yes, yes.

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

[indiscernible]

Sorry, sir, you are not audible properly. The next question is from the line of [ Lokesh Sabharwal ], an individual investor.

Congratulations for the wonderful result. I have a query. You said that you would be coming up with 150 new songs. So in those particular songs, how many of regional songs are you targeting apart from Hindi, particularly like Telugu?

Telugu, particularly Telugu. Telugu, we are trying, but see, South market suddenly has become really very aggressive. So we don't know how many songs. I think at least we will acquire 3 to 4 films around, say, 25, 30 songs will come.

Okay. Okay. And one more query. In terms of inorganic growth, do you have any kind of plan in terms of acquisition of any Hindi or regional small music label, which can increase your inventory?

We are always open to that. Whenever opportunity comes, we'll definitely look at that.

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

Just a clarification. I think you mentioned somewhere that the first year MG is higher than the rest 3 years MG, right, on an annual basis?

3 years MG, what was that?

The first year MG is a little higher compared to next 3 years.

No, no, no, it's not like that. Total MG is a one package. On the contrary, MG is a little lesser of first year. Second year, [Foreign Language] MG for 4 years. But advance, we have taken more advance from the first year.

So advance is coming up, sir.

Yes. [Foreign Language] advance first year.

The next question is from the line of [ Vinay Agarwal ] from Shri Venkatesh.

Congratulations, sir, for a good set of numbers. Just wanted to inquire that our group company named Tips Films is now going to expand its portfolio substantially over a period. So can you give us an idea that going forward, what portion of the total content cost will be earmarked for acquiring content from our group companies as [ content ]?

I think maximum, it can be 30%, 35% from our own company, we acquire content. [Foreign Language] And that is a target we have kept for this year. And so let's see.

As that was the last question for today's conference, I would now like to hand the conference over to Mr. Nikunj Jain from Orient Capital.

Thank you. I would like to thank the management for taking the time out for this conference call today, and also thanks to all the participants. If you have any queries, please feel free to contact us. We are Orient Capital, Investor Relations adviser for Tips Industries Limited. Thank you so much.

Thank you.

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