Baba Arts Limited Reports Mixed Q1 Results with Revenue Surge and Profit Decline
Baba Arts Limited's Q1 results show mixed performance. Net sales soared 290.13% to Rs 360.24 crore, but net profit fell 62.68% to Rs 14.73 lakh. The company's two main segments, Trading in IPR of Film Rights and Digital Media Content, generated Rs 202.51 crore and Rs 157.73 crore respectively. Total income increased by 268.92%, while total expenses rose by 404.44%. The company maintains a strong, debt-free balance sheet with Rs 525 crore paid-up equity share capital. The statutory auditor issued an unmodified opinion on the financial results.
*this image is generated using AI for illustrative purposes only.
Baba Arts Limited , a company operating in the entertainment sector, has released its unaudited financial results for the first quarter, revealing a mixed performance with significant revenue growth but a decline in profitability.
Revenue Soars, Profit Declines
The company reported a substantial increase in net sales, which rose to Rs 360.24 crore, up from Rs 92.34 crore in the same quarter of the previous year, marking a remarkable 290.13% year-over-year growth. However, net profit for the quarter decreased to Rs 14.73 lakh, down from Rs 39.47 lakh in the corresponding quarter, representing a 62.68% decline.
Segment Performance
Baba Arts Limited operates in two main segments:
- Trading in IPR of Film Rights: This segment generated revenue of Rs 202.51 crore.
- Digital Media Content: This segment contributed Rs 157.73 crore to the total revenue.
Financial Highlights
| Metric | Q1 (Current) | Q1 (Previous) | YoY Change |
|---|---|---|---|
| Net Sales | 360.24 | 92.34 | 290.13% |
| Total Income | 367.52 | 99.62 | 268.92% |
| Total Expenses | 347.81 | 68.95 | 404.44% |
| Net Profit | 0.15 | 0.39 | -62.68% |
| EPS (in Rs) | 0.028 | 0.075 | -62.67% |
Balance Sheet Strength
The company maintains a strong balance sheet with no debt and a paid-up equity share capital of Rs 525 crore. This financial stability positions Baba Arts Limited well for future growth opportunities in the dynamic entertainment industry.
Auditor's Review
The statutory auditor, M M Nissim & Co LLP, has issued an unmodified opinion on the financial results, providing assurance on the accuracy of the reported figures.
Conclusion
Baba Arts Limited's quarterly results present a picture of robust top-line growth coupled with profitability challenges. The substantial increase in revenue, particularly from the IPR trading segment, indicates strong market demand for the company's offerings. However, the decline in net profit suggests increased operational costs or competitive pressures that may require management attention in the coming periods.
Investors and stakeholders will likely be watching closely to see how Baba Arts Limited balances its growth strategy with profitability improvement measures in the remainder of the fiscal year.
Historical Stock Returns for Baba Arts
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.04% | -0.24% | -2.98% | -11.99% | -39.76% | +13.19% |
20
