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For the quarter ended September 2011, ENIL reported 36% decline in operating revenues at consolidated level to Rs 70.1 crore. Y-o-Y comparisons are not prudent for consolidated numbers as the company has hived off its outdoor business. The company has scrapped its managed event business as there were numerous small players in the segment and, hence, margins were under severe pressure. The management has indicated that it will continue to focus only on owned IP events. As a result, the event management business reported a revenue of Rs 1.2 crore against Rs 9.0 crore in Q2FY11 and Rs 6.3 crore in Q1FY11. OPM was up 1130 bps to 24.8% resulting in rise in operating profit by 18% to Rs 17.38 crore. The consolidated net profit was up by 690% to Rs 8.32 crore.
On standalone basis, the company's net sales revenue was up by 10% to Rs 69.15 crore. Ad revenue growth was higher at 12% led by volume growth with higher blended utilisation at 65% for Q2 FY12 vs 58% in Q2 FY11 and 60% in Q1 FY12. Revenue growth was also led by its top 8 radio stations, which saw revenue growth of 14% Y-o-Y to Rs 47.4 crore compared to marginal increase in revenues from new stations. OPM was up by 150 bps to 26.5% due to fall in other expenses and production expenses. The net profit was up by 80% to Rs 9.03 crore.
Quarterly Analysis
For the quarter ended September 2011, ENIL reported 36% decline in operating revenues at consolidated level to Rs 70.1 crore. Y-o-Y comparisons are not prudent for consolidated numbers as the company has hived off its outdoor business. The company has scrapped its managed event business as there were numerous small players in the segment and, hence, margins were under severe pressure. The management has indicated that it will continue to focus only on owned IP events. As a result, the event management business reported a revenue of Rs 1.2 crore against Rs 9.0 crore in Q2FY11 and Rs 6.3 crore in Q1FY11. OPM was up 1130 bps to 24.8% resulting in rise in operating profit by 18% to Rs 17.38 crore. The consolidated net profit was up by 690% to Rs 8.32 crore.
On standalone basis, the company's net sales revenue was up by 10% to Rs 69.15 crore. Ad revenue growth was higher at 12% led by volume growth with higher blended utilisation at 65% for Q2 FY12 vs 58% in Q2 FY11 and 60% in Q1 FY12. Revenue growth was also led by its top 8 radio stations, which saw revenue growth of 14% Y-o-Y to Rs 47.4 crore compared to marginal increase in revenues from new stations.
OPM was up by 150 bps to 26.5% due to fall in other expenses by 600 bps to 20.4% and production expenses by 130 bps to 5.4% of sales. There was rise in marketing expenses by 470 bps to 19.3% and employee cost by 110 bps to 23.3% of sales. Marketing Expenses higher due to the launch of new Mirchi properties and employee cost increase due to headcount increase and annual increments. The operating profit was up by 17% to Rs 18.35 crore.
Other income stood at Rs 1.98 crore. interest income was down by 27% to Rs 0.52 crore. Depreciation was down by 11% to Rs 2.68 crore and amortization was flat at Rs 5.43 crore. The profit before tax was up by 59% to Rs 12.74 crore.
Tax was up by 24% to Rs 3.71 crore. Tax rate was down from 37.4% to 29%. As a result, the net profit was up by 80% to Rs 9.03 crore.
For half year ended September 2011
It has reported 38% decline in operating revenues at consolidated level to Rs 138.8 crore. YoY comparisons are not prudent for consolidated numbers as the company has hived off its outdoor business. OPM was up 1240 bps to 25.6% resulting in rise in operating profit by 20% to Rs 35.49 crore. The consolidated net profit was up by 724% to Rs 17.62 crore.
On standalone basis, the company's net sales was up by 10% to Rs 132.35 crore. OPM was up by 270 bps to 27.8% due to fall in other expenses by 400 bps to 22.5% and production expenses by 220 bps to 5.3% of sales. There was rise in marketing expenses by 170 bps to 14.4% and employee cost also by 170 bps to 25% of sales. The operating profit was up by 22% to Rs 36.8 crore.
Other income stood at Rs 4.33 crore. interest income was up by 43% to Rs 1.47 crore. Depreciation was down by 11% to Rs 5.28 crore and amortization was flat at Rs 10.81 crore. The profit before tax was up by 83% to Rs 26.51 crore.
Tax was up by 51% to Rs 7.83 crore. Tax rate was down from 35.77% to 29.5%. The net profit was up by 100% to Rs 18.68 crore.
Management Comments
Commenting on the performance of the company Mr Prashant Panday, ED and CEO, ENIL said,
The market remained tough during the quarter, but our sustained focus on cost control and innovative selling helped us post a strong profit growth. That helped generate Rs 23 crores of cash during the quarter. We expect the market to remain tough in the next quarter and have made plans to counter the slowdown in advertising growth. We also eagerly await the Phase-3 bidding to commence.
Shareholding Pattern
The promoter holding sto0d at 71.15%.
Valuation
The share is trading at Rs 253.5 on BSE
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