BENGALURU: Indian private FM player Entertainment Network (India) Limited (ENIL) reported higher q-o-q and y-o-y PAT for Q1-2015, while slashing its q-o-q marketing expense by 70 per cent.
ENIL reported 14.6 per cent higher PAT at Rs 24.35 crore (26.1 per cent of TIO or net Total Income from Operations) in the current quarter as compared to Rs 21.24 crore (18.6 per cent of TIO) in the immediate trailing quarter and 22.3 per cent more than the Rs 19.92 crore (23.4 per cent of TIO) in the corresponding year ago quarter.
As mentioned above, the company pared its marketing expense by a massive 70 per cent in Q1-2015 at Rs 12.03 crore (12.9 per cent of TIO) as compared to the Rs 39.56 crore (34.5 per cent of TIO) in Q4-2014 but spent 13.45 per cent more towards this expense head as compared to the Rs 10.06 crore (12.4 per cent of TIO) in Q1-2014.
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ENIL’s TIO in Q1-2015 at Rs 93.26 crore was down 18.6 per cent as compared to the Rs 114.51 crore in Q4-2014, but was 9.4 per cent more than the Rs 85.24 crore in Q1-2014. Other income was Rs 7.22 crore in Q1-2015, Rs 5.98 crore in Q4-2014 and Rs 5.44 crore in Q1-2014.
The company’s total expenditure in Q1-2015 dropped 26.8 per cent in Q1-2015 to Rs 66.58 crore (71.4 per cent of TIO) when compared to the Rs 90.89 crore (79.4 per cent of TIO) in Q4-2014, but was 5.4 per cent higher than the Rs 63.18 crore (74.1 per cent of TIO).
Other expenditure in Q1-2015 at Rs 17.17 crore (18.4 per cent of TIO) was 25.3 per cent more than the Rs 13.7 crore (12 per cent of TIO) in Q4-2014 and 0.6 per cent lower than the Rs 17.27 crore (20.3 per cent of TIO) in Q1-2014.
ENIL’s employee benefit expense (EBE) in Q1-2015 at Rs 20.41 crore (21.9 per cent of TIO) was 6.4 per cent more than the Rs 19.17 crore (16.7 per cent of TIO) in Q4-2014 and 7.4 per cent more than the Rs 18.99 crore (22.3 per cent of TIO) in Q1-2014.
Production expense in Q1-2015 at Rs 4.13 crore (4.4 per cent of TIO) was lower by 14.7 per cent than the Rs 4.83 crore (4.2 per cent of TIO) in Q4-2014 and 8 per cent more than the Rs 3.82 crore (4.5 per cent of TIO) in Q1-2014.
ENIL paid 18.2 per cent lower license fee in Q1-2015 at Rs 4.65 crore (5 per cent of TIO) as compared to the Rs 5.68 crore (5 per cent of TIO) in Q4-2014 and 0.8 per cent lower than the Rs 4.69 crore (5.5 per cent of TIO) in Q1-2014.
ENIL MD and CEO Prashant Panday said, “While the quarterly results, especially the strong earnings growth are satisfying, what is more satisfying is the imminent commencement of the Phase-3 expansion process, perhaps in the next 3-4 months. Further, the Government is likely to approve the migration policy for Phase-2 licenses as recommended by TRAI. These long-delayed decisions by the new government will hasten the pace of growth of FM radio in the years to come”.
Notes: (1) 100,00,000 = 100 Lakhs = 10 million = 1 crore(2) The Company has revised depreciation rates on fixed assets w.e.f. April 01, 2014 as per the useful life specified in the Schedule II of the Companies Act, 2013 (the “Act”) or as re-assessed by the Company. As prescribed in said Schedule II of the Act, an amount of Rs 583.24 lakhs (net of deferred tax of Rs 300.32 lakhs) has been charged to the opening balance of retained earnings for the assets in respect of which there is no remaining useful life as on April 01, 2014 and in respect of other assets on that date, depreciation has been calculated based on the remaining useful life of those assets. Had the Company continued with the previously applicable Schedule XIV rates as per Companies Act, 1956, charge for depreciation for the current quarter ended June 30, 2014 would have been lower by Rs `35.66 lakhs, and the profit before tax for the quarter would have been higher by the same amount.
