Tips Industries: Imagine a world without the vibrant tapestry of Indian cinema. No tear-jerking family dramas that bring generations together and infectious dance numbers that leave you tapping your feet. Cinema in India isn’t just entertainment, it’s a cultural phenomenon, a shared experience that weaves its way into the very fabric of society. 

Here comes Tips industries Ltd, a company that has been a vital thread in this vibrant tapestry for over four decades. Tips began its journey with a passion for music, but their vision soon expanded to their silver screen. They recognised the power of cinema to tell stories, evoke emotions and create lasting memories.

Tips contributes to the rich legacy of Indian cinema, offering audiences a kaleidoscope of experiences like heart pounding actions, loud comedies and soul stirring romances all woven together with the distinct magic of Indian storytelling. Tips Industries Ltd, more than just a company, is a storyteller, a trendsetter and a key player in the ever evolving landscape of Indian entertainment.

Industry overview Of Tips Industries

The Indian music industry is witnessing a remarkable renaissance, fueled by the country’s robust economic growth, thriving domestic consumption, and the rapidly expanding digital landscape. According to the FICCI-EY Media & Entertainment Report 2023, the recorded music industry in India grew by an impressive 19% to reach ₹22 billion in 2022, with digital revenues accounting for a staggering 87% of the total revenue.

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The industry’s growth is being propelled by several key factors, including the increasing convenience of music streaming services, rising data consumption, and the proliferation of smartphones. With the advent of high-speed 4G and 5G networks, seamless user experiences have become the norm, driving music consumption to new heights.

Moreover, India’s favorable demographic trends, with a large and tech-savvy youth population, have further fueled the growth of the music industry. One of the most significant drivers of this growth is the surge in digital adoption across India and neighboring countries, leading to an increased uptake of popular international platforms like TikTok, YouTube, and Instagram, where Indian music is widely consumed.

The report highlights that music listeners aged 16-44 years are more likely to pay for audio streaming services, preferring an ad-free experience and the freedom to access millions of songs at the click of a button.

The Indian music industry’s strength lies in its rich cultural heritage and the diversity of its musical traditions, making it one of the world’s most exciting music markets. With a 70% share of all music listening time dedicated to domestic artists, the industry’s future looks promising, as it continues to cater to the ever-growing appetite for local and regional content.

As the industry continues to evolve, factors such as the rise of smart speakers, the integration of music into various aspects of daily life, and the increasing popularity of short-form video content are expected to further shape its trajectory, unlocking new avenues for growth and innovation.

Company Overview Of Tips Industries

Tips Industries is one of the leading companies in the Media & Entertainment Industry, they are engaged in production and distribution of motion pictures, acquisition, films and leveraging audio content libraries digitally in India and Overseas. 

The company was incorporated in 1975 and it is one of the oldest companies in the Indian M&E Industry. They are also the leading producer of Punjabi films in the country. Tips Industries started its journey as a trading firm during the 1980s and now it has grown to become a leading entertainment company in India. They are headquartered in Mumbai. 

The company has a catalog of music over 25 languages which are available across multiple platforms globally. Their digital and broadcast partners include Youtube, Spotify, Facebook, Instagram, prime music, Moj, Viacom 18 and Zoom. 

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Financial Overview Of Tips Industies 

FY 2023FY 2022FY 2021FY 2020
Revenue (in crores)186.78135.5990.5390.99
Net profit (in crores)76.5264.5643.4711.34
ROE64.15%63.40%47.86%15.01%
ROCE76.99%64.90%53.85%18.02%

In the calendar year 2023, Tips Industries saw a substantial increase in revenue, surging by 37.75% to reach ₹186.78 crore as opposed to ₹135.59 crore in CY2022. Analyzing a span of three years, encompassing CY2021 to CY2023, the company displayed a  Compound Annual Growth Rate (CAGR) of 27.09% in revenue.

Simultaneously, there was a noteworthy upturn in net profit, experiencing a 18.52% increase from ₹64.56 crore in CY2022 to ₹76.52 crore in CY2023. The increase in revenue and profit happened as a result of increased trends towards paid streaming models on various audio platforms and company’s expansion with new brands, sync rights and partnerships. 

In CY23, Tips industries maintained favorable financial metrics with a Return on Equity (ROE) of 64.15% and Return on Capital Employed (ROCE) of 76.99%.

The company is engaged in doing its business with zero debt for the past two years and recently the DII’s have increased their stake from 0.92% in Dec 2023 to 8.17% in Mar 2024.

Future Plans Of Tips Industries

Tips industries plans to focus more on quality rather than quantity. They have released 733 new songs in FY 24, going forward they aim to release around 150 songs. The company expects to acquire music rights for around 8-10 films in the upcoming year. 

Tips Industries has entered into a new global exclusive contract with Warner Music Group for distribution. With this contract, they expect to improve the scope of their digital distribution across India and the globe. 

The company has set up a new brand and partnership division to fuel further growth. With maintaining a strength in Hindi music, they plan to focus more on acquiring regional music rights, especially for languages like Telugu and Tamil.

 The company remains open to acquiring music rights for more films/production houses, specifically in the regional language space, to expand its content library. They focus on acquiring quality music across languages, even if it means fewer but more premium titles or talent. 

Conclusion

Tips Industries, stands at a crossroads of legacy and progress. Their impressive track record in music production and film distribution highlights a deep understanding of the Indian entertainment landscape. Their successful foray into the digital realm demonstrates their adaptability and willingness to embrace new technologies. 

As the Indian entertainment industry thrives on a global stage, Tipes future hinges on their ability to maintain their storytelling prowess while catering to evolving audience preferences. By staying true to their core values of quality and innovation, Tips industries has the potential to continue captivating audiences for generations to come. What would you say about their future, do let us know in the comments below. 

Written by Pavunkumar V M

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