Tips Industries Declares 200% Dividend, Records Highest-Ever Revenue In Q2; Buy?

Tips Industries is a small-cap company in the consumer discretionary sector. The company has announced its financial results for the quarter ending September 30, 2023. The company has declared a 200% interim dividend for FY24 and has clocked the highest-ever quarterly revenue in Q2FY24.

Tips Industries Dividend

On the fully paid-up equity shares of the face value of Re. 1/- per share, the company has announced a second interim dividend of Rs. 2/- (i.e. 200%) per equity share. The record date for payment of the second interim dividend has been set by the Board as October 31, 2023. Payout of the interim dividend is scheduled for November 15, 2023, or before.

"The Board of Directors have approved an interim dividend of Rs 2.00 per share for Q2 FY24 taking the total interim dividend for H1 FY24 to Rs 3.00 per share; as part of our ongoing efforts to reward our shareholders," said Tips Industries in a statement.

Tips Industries Results

The company declared its highest ever quarterly revenue of Rs 60.9 Cr during Q2FY24, a growth of 23% y-o-y from Rs 49.6 Cr in Q2FY23. Revenue for H1 FY24 stood at Rs 113.5 cr up 35% y-o-y. On the operating level, its EBITDA stood at Rs 49.8 Cr in the quarter under review up by 84% YoY from Rs 27.2 Cr in the corresponding quarter of the previous fiscal while its EBITDA margin reached 81.9% during Q2FY24 as against 54.8% in Q2FY23. Tips Industries said its Q2FY24 net profit reached Rs 39.7 Cr rising 91% YoY from Rs 20.8 Cr in Q2FY23.

Mr. Kumar Taurani - Chairman & Managing Director said, "I am pleased to announce that Tips has achieved the highest ever quarterly revenue of Rs. 61 crore, representing a growth of 23% year-on-year. This achievement is a testament to the hard work and dedication of our entire team. During this period, we released a total of 130 new songs of which, 62 were captivating new film songs and 68 were non-film songs. This diverse range of music showcases our ability to cater to a wide spectrum of tastes and preferences, solidifying our position as one of the leading music labels in the industry."

"In the digital realm, our YouTube channel subscriber numbers have reached 89.7 mn while our YouTube views for Q2FY24 reached 50.9 bn up 86% y-o-y. This reflects the popularity of our repertoire. I want to share another positive development with you. Mr. Hari Nair has recently joined us as our CEO. He has over 25 years of diverse experience in media and technology. Mr. Nair brings a wealth of knowledge and expertise to our organization. His extensive background in the music industry, spanning two decades, further strengthens our leadership team. I am confident that under his guidance, we will continue to innovate and thrive in this dynamic industry," said Kumar Taurani.

"I want to express my gratitude to all our stakeholders who have supported and believed in our vision. We remain committed to delivering exceptional music experiences and exploring new avenues for growth," he further added.

Tips Industries Share Price Target

Ameya Ranadive CMT CFTe Equity Research Analyst, Choice Broking said, "TIPS IND, currently trading at 357, has recently made a significant stride in its market performance. On the 17th of October, the stock experienced a remarkable surge in trading volume, a pivotal moment that coincided with its sustained trading above a previously formidable resistance level. This development marks a critical three-month range breakout, effectively shattering the confines of its former range, which extended from 343 to 292."

"Reinforcing this bullish sentiment is the ADX indicator, which stands tall at 26, indicative of the stock's resolute upward momentum. Simultaneously, the RSI, perched at 70 and exhibiting a distinct upward slope, signals an uptick in the stock's strength and potential for further gains. The expanding Bollinger Bands further underscore the stock's newfound vigor, suggesting an impending surge in market volatility, a sign of an imminent significant movement," Ameya Ranadive added.

The equity research analyst of Choice Broking further stated "Notably, TIPS IND is presently trading above its short-term, mid-term, and long-term moving averages, including the 20, 50, 100, and 200 EMAs. This further solidifies its current robust position in the market. Given these compelling indicators, market analysts and experts are eyeing a mid-term price target range of 390 to 410, projecting a potential uptick of 15 to 17%. TIPS IND's recent performance paints an optimistic outlook, but need to be careful if the stock falls below its breakout zone."

Disclaimer

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