On standalone basis, the company's net revenue was up by 9% to Rs 68.87 crore. Revenue growth was led by higher volume. OPM was stagnant at 29.2%. The net profit was up by 34% to Rs 12.97 crore due to other income

Quarterly Analysis

For the quarter ended June 2012, ENIL reported 2% incline in operating revenues at consolidated level to Rs 70.04 crore. OPM was up 280 bps to 29.2% resulting in rise in operating profit by 13% to Rs 20.45 crore. The consolidated net profit was up by 44% to Rs 13.42 crore.

On standalone basis, the company's net revenue was up by 9% to Rs 68.87 crore. Revenue growth was led by higher volume. OPM was stagnant at 29.2%. There was rise in marketing expenses by 300 bps to 11.9% which was offset by fall in other expenditure by 190bps to 22.9% and employee cost by 130 bps to 25.5% of sales. Marketing Expenses were higher due to increased revenue contribution from Mirchi Activation & Innovations. The operating profit was up by 9% to Rs 20.14 crore.

Other income stood at Rs 6.08 crore, up 84%. Depreciation and amortization was down by 1% to Rs 7.9 crore, out of which amortization is Rs 5.4 crore. The profit before tax was up by 33% to Rs 18.31 crore.

Tax was up by 30% to Rs 5.34 crore. Tax rate was around 29%. The net profit was up by 34% to Rs 12.97 crore due to other income

For year ended March 2012

It has reported 33% decline in operating revenues at consolidated level to Rs 311.05 crore. OPM was up 1020 bps to 32.1%. As a result, the operating profit was down by just 2% to Rs 99.81 crore. The consolidated net profit was up by 227% to Rs 56.1 crore.

On standalone basis, the company's net sales was up by 8% to Rs 301.43 crore. OPM was up by 90 bps to 33.4% due to fall in other expenses by 710 bps to 17.3% of sales. The operating profit was up by 11% to Rs 100.69 crore.

Other income stood at Rs 11.52 crore, up 144%. Depreciation and amortization was down by 3% to Rs 32.46 crore. The profit before tax and EO was up by 31% to Rs 79.75 crore.

EO for the year was nil compared to EO income of Rs 12.68 crore in FY11. Tax was up by 8% to Rs 23.24 crore. Tax rate was around 29%. The net profit was up by 8% to Rs 56.51 crore.

Management Comments

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

Our focus on providing solutions to our clients and our strong listenership results have helped us grow in a very trying advertising environment. We expect an improvement in the advertising sentiment from the 3rd quarter. In the short term, we are eagerly awaiting the Phase-3 auctions which should provide strong momentum to the radio industry. We are excited by the TRAI's recommendations to reduce channel separation to 400 kHz as this will benefit all stakeholders – the public, the government and the broadcasters. We remain confident and buoyant about the medium to long term prospects of radio.

Other Developments

Considering the synergies of IPR Business with Radio and the potential to reduce overhead costs, the company has purchased IPR Business from ABSL (wholly owned subsidiary) on a going concern basis through a slump sale. ABSL valued at Rs.8.36 crore. Net worth of ABSL post transfer of IPR division Rs 6.74 crore. The transfer will be effective from July 1, 2012.

The company has launched three internet radio stations – Purani Jeans, Club Mirchi, and Meethi Mirchi

 Shareholding Pattern

The promoter holding stood at 71.15%.

Valuation

The share is trading at Rs 224 on BSE