Key Highlights

The Radio industry grew by around 15% in Q3 FY'15 and the company grew slightly better and was able to grab the market share.

During the quarter, almost all the sectors grew and there was no extreme fall or rise of growth in any of the sector for advertisement income. There was a broad based growth in volumes across the sectors

Margins were slightly under pressure on YoY basis largely due to continuous investments in HR and marketing side by the company. As per the management, they have just started on advertising and it will increase only from here on.

Phase 3 auction is under way. Government information memo already being out and prebid conference has already happened. Management expects the acution to happen by the end of March 2015. However the Government has announced only 135 frequencies in first batch for auction to be bid for. These frequencies are the left over frequencies of Phase 2 which was supposed to be auctioned in 2006.

Playes whose licenses were about to expire, they will also be able to migrate the current licenses for next 3 years.

With regards to the remaining 700 frequencies TRAI has been asked to look at Reserve fee once again. Trai will come out with recommendations soon as players have already complained government about the higher Reserve fee.

Current Blended utilization for the company stands at 110% for top 8 radio stations which are operating for 17 hours per day. At peak levels, the company can increase the utilization to 140% as well.

The company has cash and cash equivalent of around Rs 514 crore.

The company expects the surplus cash to be utilized for new license bidding and for M&A if any.