• ENIL reported revenue decline of 42.3% YoY to 856mn(Elara E : 846mn) slightly higher than our estimates, witnessing a 77% QoQ growth during the quarter led by core radio which grew by 80% QoQ(strong ad volume growth of 11.5% YoY) to INR 845mn and digital products too grew marking a significant increase in its digital orientation. The company’s Solutions business, which includes digital, accounted for 27% of Q3 revenues, with strong demand for especially digital solutions business. ENIL reported a slight outperformance vs MBL during the quarter as the latter declined 42% YoY v/s 38.1% YoY decline for ENIL on radio segment revenues.
• Solutions margins expanded to 48% from 35% last year on the back of a higher share of digital products. Share of digital solutions in quarterly revenues stood at 10%, marking a strong pivot towards digital.
• Company reported a positive EBITDA of INR 209mn, after a COVID-19 hit H1FY21 with operating loss of INR 323mn. EBITDA margins too saw a sharp uptick to 24.4%, down 350bp YoY but achieving Sept’19 levels as the company adopted severe cost rationalization measures (production expenses down 59.2% YoY, license fees down 7.6% YoY, employee costs down 35.1% YoY and other expenses down 27% YoY).
• ENIL reported a PAT of INR 184mn, up 85.9% YoY, on back of exceptional item pertaining to write back on reassessment of performance royalty liability of INR 267mn & INR 26.1mn pertaining to fee received consequent to termination of time brokerage arrangement to broadcast radio programmes and content in New York and New Jersey with N J Broadcasting, however excluding which loss after tax was INR 109.1mn in Q3FY21 v/s PAT of INR 99mn in Q3FY20 as surge in interest costs by 33.9% YoY & lower other income by 6.1% YoY which was partially offset by the dip in depreciation by 5.8% YoY during the quarter.
• ENIL has cash reserves of INR 1970mn as on Dec’20 indicating strong liquidity position.

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