Key Highlights

Radio industry as a whole has done well in Q2 FY'15. Underlying economy continues to remain under pressure while higher spends and advertisement on Radio generally does well in such environment. As and when the economy improves, Radio will do even better.

Some of the sectors that are driving advertising growth in Radio are Retail, Media entertainment, Real estate, Auto FMCG, other services while Telecom and BIFS are a bit on the laggard side.

Ecommerce business is a new sector which has great potential for Radio. The growth in this segment is phenomenal and is helping higher ad revenues.

Strong growth in Q2 FY'15 was also helped by lower base of Q2 FY'14 where there was some Un utilized inventory which got filled up this year. Prices were increased by about 5% on YoY basis.

There was no political nor Govt of India advertising in Q2 FY'15. In Q3 FY'15, especially in the month of Oct'14 so far, the elections in Maharashtra saw some additional political advertisements.

Phase 3 auction process got delayed further. But the auction will happen in FY 2015. Management does not expect any irrational bidding in Phase 3 auctions.

17*18% growth in Q2 Radio industry vis a vis 21% growth for ENIL

Non Radio portfolio also has grown well and is profitable even though margin is lower. These businesses include Activation business, multimedia solutions business, Event management business etc. Non Radio business will improve further and thus the overall margins of ENIL will go higher with years to come

Marketing expenses was up by 38% YoY due to brand expenditure in preparation of Phase 3 auction.

The company operated at overall blended 101% capacity utilization.

The company has cash equivalent of about Rs 480 crore as on Sep'14.