Entertainment Network India (ENIL) is likely to see a steady July-September quarter. Net profit of the company may increase 13.7 percent to Rs 26.5 crore from Rs 23.3 crore in year-ago period. Revenue, during the period, is seen rising 9.9 percent to Rs 114.7 crore against Rs 104.4 crore year-on-year, as per a CNBC-TV18 poll.
In Q2, EBITDA may grow 11.9 percent to Rs 35.4 crore from Rs 31.6 crore on annual basis. Margins are likely to expand 60 basis points at 30.9 percent versus 30.3 percent.
Riding on increased spends by FMCG, realty & e-commerce companies, ENIL's advertising revenue may grow at 9.7 percent in Q2FY16.
Analysts polled by CNBC-TV18 say administration expenses may rise while employee costs may also jump due to added operation from phase III Channels. Utilisation and yield numbers will be key factors to watch put for.
In phase III, the radio company which operates Radio Mirchi, forked out Rs 339.2 crore and Rs 370 crore towards migration which may cause additional burden of interest costs. Depreciation from new channels will only impact financials from FY17, say analysts. Inventory levels of the company may get a fillip as companies launch services in the newly acquired channels.
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