Highlights of the call

Consolidated revenues grew 11% to Rs 109.1 crore. Net Profit declined by 42% to Rs 16.66 crore. Pricing and volume led growth for Radio

Total revenues for existing stations grew by 7% to Rs 109 crore. Volume growth was 10% and price growth of 2.2%. Revenue without operating other income for existing stations grew by 8.9%

De-growth in solutions led business primarily due to shifting of planned activities. Expect to recover in Q2 and Q3 while revenue projection for FY17 remain unchanged from non-radio segment

Radio advertising revenues grew by 23.9%, growth in existing stations (32 stations) was 21.5%. Smaller markets registered growth of 30%.

Sectors which performed well were Government, Auto, BFSI and Education. Real Estate grew by high single digit, Media and entertainment growth was in low double digit while Durable and services didn't perform well. FMCG growth was low at 8-10% while E-commerce was down by 53%

E-commerce – expects it to rebound. Q3 and Q4 will back to regular business. In absolute growth term, don't expects growth rate higher on YoY basis in Q3 and Q4.

Government - 13.5% contribution share which offsets the slowdown in other sector .Don't expects Govt to do such expenditure in coming qtrs also. The mgmt expects other sector to pick up.

Blended inventory utilization was at 100% while top-8 stations utilization was 113% and 95% was from remaining stations

Realization for 10 sec slot was at Rs 9340

Higher marketing expense due to launch of new stations and Mirchi brand jingle. Operating costs include expenses incurred for Phase 3 expansion. Marketing spends will remain higher for another 4-6 qrts on account of continued launches. New Mirchi TV campaign will also be launched

With Phase 3 roll out, brand Mirchi will expand to 53 channels in 43 cities

The company launched 4 new channels: Hyderabad – Mirchi 95 FM Hindi with Hindi Songs and English Jock Talk, Bengaluru – Mirchi 95 FM with Hindi programming, Cochin - Mirchi 104 FM with Hindi and Malayalam programming, Guwahati - Mirchi 95 FM with Hindi and Assamese programming

After launch till 30 days, the company didn't accept any ads. In all mkts it has launched, the company ad rates are close to highest price brand.

Bengaluru pricing of Hindi FM of the company is higher than Kannada FM station.

The company is expected to launch 3 stations in August, and 10 more by December' 2016

Bengaluru: Business is coming from local advertisers, ecommerce, real estate. Ad slots for 2^nd frequency is priced at Rs550-560 per10 sec slot

Hyderabad: It is practically non-operational due to network issue and temporary facility. Expect to be fully operational from Sep. 16.

Cochin and Guwahati station has been branded as core radio Mirchi which resulted in getting business

New business registered EBITDA loss of Rs 8.7 crore in the quarter, which will continue for next 3-4 quarters.

The mgmt expects EBITDA breakeven of 6 quarter for new station. Breakeven capacity utilization required for new station is 30-50%

All the station acquired from TV today has been rebranded to Radio Mirchi since Jan-16 while company started selling slots in Q4 FY16 and Q1 FY17. All the 4 station had achieved EBITDA breakeven in 6 month.

Extended Mirchi's online presence to 16 music streaming channels

Industry has asked government to delay auction for 2^nd batch of Phase 3 until the concerns are resolved, which are ; - lower reserve price , rationalise cap on number stations, do away with three year locking period, allow news broadcasting without caveats and few others

Radio industry ad revenue is 4.5% of total ad revenue.

Debt as on June 30,2016 : Rs 255.23 crore. Cash & Cash Equivalent as on June 30, 2016 : Rs 235.44 crore. Net debt was at Rs 20 crore on standalone basis and Rs12-13 crore on consolidated basis.

Expect core business (32 radio station) to grow 11-13%. Phase 3 will add to this revenue growth. Its impact will be felt in FY18. EBIDTA margin on existing business will grow.

The mgmt said that Radio growth will moderate and non- radio business will pick up for the company.