Quarterly Performance for December 2015

The consolidated operating revenues increased by 18% to Rs 149.67 crore. The revenue from television broadcasting segment grew by 20% to Rs 147.65 crore while radio business saw de-growth of 49% to Rs 2.02 crore.

OPM has inclined by 280 bps at 37.3% due to decrease in advertisement, distribution and promotion expenses by 320 bps to 16.6% as a percentage of net sales. As a result, the resultant operating profits inclined by 28% to Rs 55.82 crore.

The PBIT margin from television broadcasting inclined by 764 bps to 39.6%, The PBIT from television broadcasting inclined by 49% to Rs 58.48 crore. There was loss at PBIT level in radio business of Rs 2.54 crore, against loss of Rs 1.94 crore in the corresponding quarter of last year.

Other income increased by 107% to Rs 8.77 crore. The interest cost decreased by 85% at Rs 0.04 crore. Depreciation charge increased 4% to Rs 7.17 crore. The profit before tax inclined by 43% to Rs 57.37 crore.

The tax outgo inclined by 48% to Rs 20.47 crore. Tax rate increased from 34% to 36% YoY. The net profit inclined by 40% to Rs 36.90 crore on expansion in OPM.

Performance for nine months ended December 2015

The consolidated operating revenues increased by 12% to Rs 403.82 crore. The revenue from television broadcasting segment grew by 13% to Rs 396.72 crore while radio business saw de-growth of 39% to Rs 7.10 crore.

OPM has declined by 380 bps at 30% due to increase in employee cost. As a result, the resultant operating profits declined by 1% to Rs 121.34 crore.

The PBIT margin from television broadcasting declined by 87 bps to 31%, The PBIT from television broadcasting inclined by 10% to Rs 123.14 crore. There was loss at PBIT level in radio business of Rs 10.64 crore, against loss of Rs 6.30 crore in the corresponding period of last year.

Other income increased by 76% to Rs 20.67 crore. The interest cost decreased by 90% at Rs 0.13 crore. Depreciation charge increased 1% to Rs 22.86 crore. The profit before tax and EO inclined by 8% to Rs 119.02 crore.

There was EO income of Rs 2.07 crore due to sale of 4 radio station to ENIL. The tax outgo inclined by 10% to Rs 41.91 crore. Tax rate increased from 34% to 35% YoY. The net profit inclined by 9% to Rs 79.18 crore.

Other developments

The Company made an application to the Ministry of Information and Broadcasting to grant approval for sale of its three radio stations at New Delhi. Mumbai and Kolkata, which was refused by the said ministry. The Company filed a writ petition before Honourable High Court of Delhi against such refusal, which is pending before the Honourable Court. The Ministry of Information and Broadcasting also demanded a payment of Rs 71.36 crore towards additional migration fee for migration of its radio stations from Phase II to Phase III Policy Regime, against which the Company has obtained an interim relief till the disposal of the aforesaid case. The Company is pursuing the case legally and expects a favourable outcome.

The Company has made a strategic investment of Rs 45.52 crore in Mail Today Newspapers Private Limited (Mall Today) for entering into print media. Though Mail Today is presently incurring losses, the Company is confident of its long-term strategic value and it has also received a guarantee from its holding company, Living Media India Limited, for Indemnifying any loss to the Company arising from the sale of the said investment, based on which the carrying value of the said investment Is considered appropriate. The auditors have included this matter in their review report without qualification.

Shareholding Pattern

The promoter holds 57.42% stake in the company.

Valuation

The scrip is trading around Rs 305.