Highlights of the call

Consolidated revenues grew 5% to Rs 150.65 crore. Net Profit declined by 43% to Rs 16.41 crore.

Growth driven by pricing, Government business and new stations

Demonetization had negative impact on Advertising, due to lower revenues for core advertising sectors

Operating costs include expenses incurred for Phase 3 expansion

Retained market leadership with over 30% market share

The company launched 3 new channels during the quarter in Lucknow, Pune and Kanpur3

Mirchi Rock n Dhol festival (Navratri Garba) held across 7 cities in 3 states

Net Cash as on December 31, 2016 is Rs.12.4 crore

Second batch of Phase 3 auction for 266 frequencies across 92 cities ended on December 13, 2016. As per the daily public report published on MIB website, only 66 out of the total 266 frequencies have been allotted provisionally, final results awaited.

In Q3, on like to like basis there was 1.5% decline in core radio business while new radio helped the topline growth.

In October month the company has seen 17% growth.

Demonetization impact – large impact on FMCG and Durable companies seen. 30% de-growth seen in November, which impacted quarterly performance.

Ad spend by FMCG was down by 20%, auto by 9% and real estate by 16% for Q3. E-commerce continues to be in decline mode.

From Q1 next year, FMCG business will come back to normal.

Core radio business of 36 stations has de-grown by 1.5-2% for Q3. New station contribution was 8%. Overall revenue up by 6% and because of other reported income overall growth is 4%.

22% increase in Govt pricing. Govt spending mostly came in December.

For paper and radio business in December, Govt, E-wallet and banking & financial segment help drive growth. December month saw 11% growth. Television took beating in November and December months. For paper, November took big hit and December recovery was also not good. Only radio has recovered lot in December.

Demonetization impact will be 5 -10% for Q4, more towards 5%. In Q1 FY18, with budget coming in effect, the mgmt expects by H2 FY18, high growth due to lower base.

Brand "Love" has been rolled out in eight cities as of now, and the rollout is complete. The company is following a strategy of keeping inventory utilization low in these channels and expects to take the proposition of reducing the frequency of advertising but to greater effect. As per management, the strategy is playing out well thus far, and in some of its new stations (same city), the company is able to get pricing in line with/ higher than the Mirchi brand In FY18-19, whole phase 3 will be launch.

Phase 3 – contributed to loss, which impacted EBIDTA in Q3.

In Q3 FY18- Phase 3 will be EBIDTA positive.

In Bangalore, 2^nd frequency is getting higher rate then 1^st frequency, same with Hyderabad. In Chandigarh, the company get same price as incumbent. In every market, the company's 2^nd frequency is second highest price one

8% effective rate up in Q3. It was at Rs 11100 per 10 sec at gross level vs Rs 10276.

Inventory volume declined by 8%, partly due to demonetization and partly due to strategy. The company will cut volume. Avg inventory is at 13 min per hr in Q3 and will reduce to 10 min per hr over 3 yrs.

Activation contributed 10% to revenues.

Mirchi love brand - catering to younger audience which college goers and new job goers.

Non radio business is showing good traction.

Core radio biz will be affected by 5-7% due to demonetization in Q4.

Taking price hike will impact revenue growth but price hike will be taken in phases.

Overall EBIDTA for the company will be lower than last year due to new station but EBIDTA for core radio will be more than last year.

BFSI – cut ads back in Jan and Feb month.

By end of FY17, the company will be doing 60-70 concerts. Demonetization impacted the concert business due to price of ticket falling down and withdrawn in sponsorship. In January, the mgmt has seen concert business recovering. Also the company has tweak and modified concert business model and as such expects return better in FY18 vs FY17.

Capacity utilization - 16 min per hr for top 8 cities and other 36 cities its 13 min per hr

IRR is projected to be upward of 15% for new stations.