Sony Music Entertainment India (SMEI) posted an 11.27 percent increase in net profit at Rs 227 crore for the fiscal ended March 2023.

The company had recorded a net profit of Rs 204 crore in the previous fiscal, The Economic Times reported.

According to the company’s financial data sourced by Tofler, operating revenue increased 26 percent to Rs 745 crore, with 64 percent of the revenue coming from outside India.

The company generated a 25 percent increase in digital, broadcasting and licensing income at Rs 728 crore, while its service income doubled to Rs 17 crore.

SMEI generates revenue through monetising intellectual property rights, content production and brand promotion services.

The expenses increased by 50 percent to Rs 467 crore due to a 75 percent increase in royalty expenses at Rs 311 crore and a 4 percent increase in advertising expenses at Rs 54 crore.

The company, owned by Sony Group Corporation subsidiary SBME Holdings BV Netherlands and Sony Music Entertainment International UK, reported a rise in cash and cash equivalents to Rs 213 crore in FY23.

SMEI, which competes with T-Series and Zee Music in the music business, declined to comment on the financials.

In its corporate strategy meeting last year, Sony Group stated that SMEI holds more than 20 percent market share in India. It added that SMEI is actively working on expanding its local music business by establishing new labels and acquiring Bollywood music catalogues.

Sony Music and Sony Pictures, also a Sony Group subsidiary, have formed an equal joint venture, Sony Entertainment Talent Ventures India, to provide opportunities for Indian artists and creators to collaborate and form global partnerships.