Music Broadcast spurts on announcing bonus issue of NCRPS

Music Broadcast hit an upper circuit of 20% at Rs 21.35 after the private FM radio broadcaster announced bonus issue of non-convertible non-cumulative redeemable preference shares (NCRPS) for every ten shares held by non-promoter shareholders.

The issue price will be Rs 100 per share, including a premium of Rs 90 and face value of Rs 10. The total issue size will be worth Rs 90 crore, and the coupon rate for the same will be 0.1%. The NCRPS will be redeemed on the expiry of 36 months from the date of allotment, the company said. The record date is to be determined in due course with the redemption price been fixed at Rs 120.

The company reported Q2 September 2020 results after market hours yesterday, 22 October 2020. Music Broadcast, also known as Radio City, posted a net loss of Rs 6.49 crore in Q2 September 2020 compared with net profit of Rs 18.51 crore in Q2 September 2019. Net sales tumbled 52% to Rs 30 crore in Q2 September 2020 over Q2 September 2019. Continued cost control led to faster improvement in profitability, the company said.

Commenting on the results, Apurva Purohit, Director said, "The gradual opening up of the economy has led to a partial recovery in business sentiments and the M&E sector has also followed a similar trajectory with improving performance in each month with an increase in ad volumes in the September quarter as compared to June quarter. With the festive season round the corner, we expect the pace of recovery to sustain in the coming quarter too. At MBL we have maintained our focus on new revenue initiatives, securing long term deals and tactical innovations which resulted in Radio City outperforming the industry yet again with a growth of 171% in ad volumes sequentially and continued leadership in market share. Our focus on cost prudency and improving collections has helped us further strengthen our Balance Sheet and we continue to maintain a healthy liquidity position with more than Rs.243 Crores as cash and investments with zero debt. This quarter we achieved positive Cash Profits and expect an improving performance hereon."

Radio City, a part of Music Broadcast is a subsidiary of Jagran Prakashan. Being the first FM radio broadcaster in India and with over 18 years of expertise in the radio industry.

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