Tips Music Ltd on Wednesday announced its quarter 2 (July-September) fiscal year 2025 results, reporting a 21 percent rise in profit year-on-year. The Indian music label company’s profit after tax (PAT) surged to Rs 48.2 crore in Q2 FY25 as compared to Rs 39.7 crore in the same period in FY2024.
During the first half of the current fiscal year, Tips profit rose Rs 91.7 crore, registering a 37 percent increase year-on-year. In 1H FY2024, the music company reported a profit of Rs 66.8 crore. Tips Music’s revenue from operation also witnessed a growth of 32 percent YoY growth to Rs 80.6 crore in the September quarter of FY2025. The cost of the content for the quarter stood at Rs 13.8 crore compared to Rs 4.7 crore in Q2 FY24.
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According to the stock exchange filing, Tips Music said that digital advertising has been a key driver of the Indian music industry. The highest proportion of spending on digital media is claimed by social media (30%, Rs 11,962 crore), closely followed by online Video (28%, Rs 11,363 crore). Paid search claims 23% (Rs 9,419 crore), while display banners claim 16% (Rs 6,579 crore).
“The current pie of digital ad spends constitutes 44% of the advertising spends in 2023, and moving forward in 2024 and 2025, the percentage is expected to increase to 50% and 55% respectively”.
Between July and September, Tips Music launched 125 new songs of which 39 were film songs and 86 non-film songs.
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Separately, the company announced an interim dividend for FY2024-25 of Rs 2 per share on the fully paid-up equity shares of the face value of Rs 1 per share. The total payout to shareholders including dividend and buyback is Rs 97.74 crore in FY25 so far.
“I am pleased to share that the company has announced a 2nd interim dividend for the year of Rs 2 per share, in addition to the interim dividend distributed and buyback conducted in Q1FY25. Our revenue for the quarter stood at Rs 80.6 crore up by 32% YOY with a PAT of Rs 48.2 crore increasing by 21% YOY. Our relentless focus is on acquiring high-quality music content,” Kumar Taurani, Chairman and Managing Director at Tips Music said in a BSE filing.
Additionally, the company has approved the appointment of Chandrashekar Ponnuswamy as an Additional Director designated as a Non-Executive Independent Director of the Company, based on the recommendation of the Nomination and Remuneration Committee.