On consolidated basis, for the quarter, ENIL reported 27% growth in operating revenues at Rs 110.35 crore with radio business contributing Rs 59.97 crore down 12%, OOH contributed Rs 39.82 crore down 5% and event management contributed Rs 12.88 crore. The operating profits for radio business were Rs 18.34 crore down 4% whereas that of OOH was loss of Rs 12.63 crore and event management was Rs 18 lakh. The loss at consolidated bottomline level was Rs 10.68 crore against profit of Rs 4.18 crore in the corresponding quarter previous year. Loss for OOH business was Rs 15.48 crore and event management was Rs 11 lakh.

Quarterly Analysis (Standalone)

For the quarter ended December 2008, ENIL reported 12% dip in operating revenues at Rs 59.97 crore. The number of stations increased to 32 stations against 29 stations in the corresponding quarter previous year.

OPM improved 250bps at 30.6%. As a of net sales, marketing expenses dipped 920bps at 10% and employee cost decreased 80bps at 18.9% whereas production expenses was up 220bps at 8.8%, license fees was stable at 5.3% and other expenditure increased 540bps at 26.5%. The resultant operating profits decreased 4% at Rs 18.34 crore.

Other income for the quarter was down at Rs 3.15 lakh as compared in the corresponding quarter previous year. Interest cost (net) increased 43% at Rs 2.89 crore and depreciation & amortization increased 8% at Rs 10.08 crore on the back of dip in amortization of 54% at Rs 5.98 crore and 3% increase in depreciation at Rs 4.41 crore. The resultant PBT was down 32% at Rs 5.41 crore. Tax provision including FBT and deferred tax was provision of Rs 55 lakh against credit of Rs 15 lakh. The resultant PAT was down 40% at Rs 4.86 crore against the corresponding quarter previous year.

Nine months Performance (Standalone)

For the nine months ended December 2008, ENIL reported 10% growth in operating revenues at Rs 178.73 crore. The number of stations increased to 32 stations from 29 stations at the end of corresponding period of the previous year.

OPM dipped 10bps at 15.8%. As a % of operating revenues, marketing expenses decreased 1050bps at 12.9% whereas production expenses increased 280bps at 8.8%, other expenditure increased 580bps at 27.5%, license fees up 10bps at 5.4% and employee costs increased 200bps at 24.5%. The resultant operating profit was up 10% at Rs 37.24 crore.

Other Income stood at Rs 1.12 crore, and interest cost (net) increased 132% at Rs 7.82 crore. Depreciation & amortization charge increased 38% at Rs 30.11 crore. PBT for the period was at Rs 0.43 crore down 95% against the corresponding period previous year. Tax provision including FBT and deferred tax was credit at Rs 1.22 crore against tax credit of Rs 18 lakh in the corresponding period previous year. PAT crashed 82% at Rs 1.65 crore against the corresponding period previous year.

Commenting on the performance of the company Mr A P Parigi, Managing Director, ENIL said,

"The general economic slowdown has hurt advertisement revenues. Our emphasis currently is on enhancing market share, innovation, productivity increases and cost optimization."

Commenting on the performance of the company Mr Prashant Panday, CEO, ENIL said,

"It has been a trying quarter. Client advertising spends have been under pressure. In this environment, Mirchi has outperformed its competitors – our market share has grown by 1%. We expect this to continue, even as the market itself contracts. ENIL's competitive position will continue to strengthen going forward, as it gains further ground over competitors, in listnership as well as brand recognition. With efforts to rationalize costs already initiated, we expect to protect margins going forward. We are also confident that as the market improves, ENIL is best placed to take advantage of the growth."

Commenting on the performance, Mr. Sunder Hemrajani, Managing Director, TIM said:

"During the quarter, the impact of the economic downturn on ‘Out Of Home Media' sector was quite severe. In the challenging media environment, the company was able to grow marginally in Q3 vs Q2 through addition of new business in IT/ITES, Hospitality and Infrastructure sectors. This compensated for the loss of revenue in Aviation, Real Estate & Financial Services sectors. Overall, YTD December, the revenue was up 29% over the corresponding period last year."

Valuation

The shares of the company are trading at Rs 143 on the bourses.