Key Highlights

As per the management, Phase 3 time line is confirmed from the government and auction will be held by end of Dec'14 or in Jan'15. Auction cannot get delayed any more

Phase 2 licenses as per the TRAI formulae of extension of licensees are likely to be accepted by the Ministry and if at all, the payments will be required to be made by April'15.

The company currently on a blended basis is operating at around 98% capacity utilization and has still headroom left for busy quarters. 8 top cities operated at capacity utilization of around 110% and rest were at 93%

The company has Rs 464 crore of cash as on June'14. As per the management this would be sufficient for Phase 3 expansion program and no debt will be taken.

Management is confident that volume will continue to remain high in Q2 FY'15 as well.

There were some price hikes made in Q1 FY'15 and further price hike will be made in Sep'14, but more or less will help in mitigating any additional advertisement and sales promotion expenditure for Phase 3 or for other promotional events.

Some additional marketing spend will come in FY'15, but will be more or less in same range of last year

During Q1 FY'15, due to elections, political advertising were higher and stood around Rs 75 crore. However because of this, the government advertising was low. Overall put together the growth would have been around 25% YoY.

The company is trying to transform from a pure Radio company to a solution provider in entire media space.

Going forward the growth will come from overall improvement in pricing, higher capacity and inventory utilsation in new centers and in small locations in Tier 2 and 3 cities. Company is also open for acquisitions.