On standalone basis, the company's net revenue was up by 11% to Rs 77.09 crore. Revenue growth was led by higher volume. OPM declined by 200bps to 24.5% due to rise in other expenditure and license fees. The net profit was up by 14% to Rs 10.3 crore.

Quarterly Analysis

For the quarter ended September 2012, ENIL reported 10% incline in operating revenues at consolidated level to Rs 77.09 crore. OPM was down by 30 bps to 24.5%. The operating profit has increased by 9% to Rs 18.86 crore. The consolidated net profit was up by 26% to Rs 10.51 crore.

On standalone basis, the company's net revenue was up by 11% to Rs 77.09 crore. Revenue growth was led by higher volume. OPM declined by 200bps to 24.5% due to rise in other expenditure by 260bps to 23% and license fees by 50bps to 5.6% of sales. Other expenses include a charge of Rs 1.35 crore towards provision for brand capital compared to a net credit of Rs 1.47 crore in Q2 FY12. The operating profit was up by 3% to Rs 18.92 crore.

Other income stood at Rs 3.45 crore, up 38%. Depreciation and amortization was down by 2% to Rs 7.91 crore. The profit before tax was up by 13% to Rs 14.45 crore.

Tax was up by 12% to Rs 4.16 crore. Tax rate was around 28.7%. The net profit was up by 14% to Rs 10.3 crore.

For the half year ended September 2012

It has reported 6% incline in operating revenues at consolidated level to Rs 147.11 crore. OPM was up 120 bps to 26.7%. As a result, the operating profit was up by 11% to Rs 39.31 crore. The consolidated net profit was up by 36% to Rs 23.92 crore.

On standalone basis, the company's net sales was up by 10% to Rs 145.94 crore. OPM was down by 100 bps to 26.8% due to rise in marketing expenses by 100 bps to 15.4% of sales. The operating profit was up by 6% to Rs 39.05 crore.

Other income stood at Rs 9.53 crore, up 64%. Depreciation and amortization was down by 2% to Rs 15.81 crore. The profit before tax was up by 24% to Rs 32.77 crore.

Tax was up by 21% to Rs 9.5 crore. Tax rate was around 29%. The net profit was up by 25% to Rs 23.27 crore.

Management Comments

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

The media sector continues to be under pressure due to the poor economic scenario, but within this, the radio sector has reported double digit growth. Mirchi has retained its 35-36% revenue market share reporting a double digit revenue growth this quarter also. Overall, the company's cash position remains strong with Rs.269 crores in liquid form. We are now eagerly awaiting the imminent roll-out of Phase-3.

Other Developments

Masala Awards in the UAE nominated Radio Mirchi amongst the top 3 Asian radio stations within 9 months of its launch

As per the Indian Readership Survey (IRS) 2012 Q2, Radio Mirchi is a clear leader with ~38 million weekly listeners across the country. As per media reports, RAM has also declared Radio Mirchi as leader in 8 out of the 9 new markets covered during the quarter

The company has launched one new internet radio station – Mirchi Edge. All the four internet radio stations Meethi Mirchi, Purani Jeans, Club Mirchi, and Mirchi Edge available on www.radiomirchi.com

The company has launched two new Mirchi Properties named ‘Mirchi Music Mix' & ‘Mirchi F-Bash'

The company has successfully executed 3rd edition of Mirchi Music Awards (South)

Shareholding Pattern

The promoter holding stood at 71.15%.

Valuation

The share is trading at Rs 244 on BSE