Share price of Tips Music Ltd. saw a significant drop of 7% on Wednesday after the company's third quarter net profit rose but missed estimates.
For the quarter ended Dec. 31, 2024, Tips Music reported a net profit of Rs 44.2 crore, marking a 27.6% year-on-year growth, compared to Rs 34.6 crore last year. However, the company missed Bloomberg's consensus estimate of Rs 48.3 crore.
Revenue grew 19.8% to Rs 77.6 crore, compared to Rs 64.8 crore in the same period last year. Despite this growth, the revenue figure fell short of Rs 84.3 crore forecasted by analysts, missing expectations by 7.86%.
Ebitda also showed an increase of 27.9%, coming in at Rs 56 crore, compared to Rs 44 crore in the previous year. However, this figure missed Bloomberg's estimate of Rs 59.8 crore by 7.05%. The company's Ebitda margin improved to 72.4% from 67.8% in the previous year.
The weaker-than-expected earnings led to a significant sell-off in the company's stock, which saw a decline of 7.01% on the day following the earnings announcement.
Tips Music Share Price
Shares of Tips Music fell as much as 7.01% to Rs 636.50 apiece. It pared losses to trade 6.59% lower at Rs 639.40 apiece, as of 2:08 p.m. This compares to a 0.23% advance in the NSE Nifty 50.
The stock has risen 67.16% in the last 12 months. Total traded volume so far in the day stood at 0.83 times its 30-day average. The relative strength index was at 29.
All four analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 62.8%.
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