| Entertainment Network (India) Limited | ||||||
| Ratings Reaffirmed | ||||||
| Rating Action | ||||||
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| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||||
| 1 crore = 10 million | ||||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has reaffirmed its ‘Crisil AA+/Stable/Crisil A1+’ ratings on the bank facilities and debt instruments of Entertainment Network (India) Ltd (ENIL; part of the Times group).
The ratings continue to reflect the market leadership of ENIL in the FM radio broadcasting industry, its comfortable financial risk profile backed by robust liquidity and nil debt, and strong parentage of Bennett Coleman and Company Ltd (BCCL; 'Crisil AAA/Stable'). These strengths are partially offset by significant dependence on advertisement (ad) revenue, which is susceptible to economic downturns, and exposure to intense competition and inherent risks in the radio industry. |
Analytical Approach Crisil Ratings has combined the business and financial risk profiles of ENIL and its subsidiaries, Alternate Brand Solutions (India) Ltd, Entertainment Network, Inc (EN, INC), Global Entertainment Network Ltd WLL and Mirchi Bahrain WLL, which have business and financial linkages with ENIL. The operations of ENIL in the USA are housed under EN, INC.
Crisil Ratings has also applied its parent notch-up criteria to factor in the extent of support expected from BCCL.
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key Rating Drivers & Detailed Description Strengths:
Increased focus on solutions and digital products has helped to gain a larger market share and diversify the business. Presence in the solutions business helps ENIL cater to non-radio consuming advertisers and, with the acquisition of Gaana, helps it in gaining foothold in the OTT segment. ENIL is the pioneer among its peers to have moved into the digital audio OTT space with Gaana.com. The business risk profile is likely to remain healthy over the medium term, driven by a diverse customer base, established market position, and an expected recovery in operating margin.
Weaknesses:
Furthermore, radio operators face risks arising from technological advancements and changing consumer consumption patterns. For instance, the growing popularity of OTT music platforms, supported by low data costs, pose a threat in the long run. With limited product differentiation, the radio industry is exposed to intense competition among a few radio operators, OTT music platforms and other music streaming applications. |
Liquidity: Strong Cash and equivalent stood at Rs 391 crore as on December 31, 2024. The company remains debt-free. Moderate capex and incremental marketing spends to promote Gaana should be funded through accrual and existing cash and equivalent. |
Outlook: Stable The company will continue to benefit from its market leadership and healthy operating efficiency. The financial risk profile should remain comfortable, backed by a prudent capital structure and improving cash accrual. |
Rating sensitivity factors Upward factors
Downward factors
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About the Company About ENIL ENIL, incorporated in June 1999, has acquired FM radio licences across 63 cities. It is a 71% subsidiary of BCCL and listed on the National Stock Exchange and the Bombay Stock Exchange. The company has 73 frequencies located in 63 cities in India. After 19 years, the Radio Mirchi brand has been changed to just Mirchi.
The company is also present in the USA, Qatar, Bahrain and the UAE. ENIL launched Mirchi Digital App in the international markets and the only indigenous company in the audio OTT space.
About BCCL BCCL, incorporated in 1913, is the flagship company of the largest media conglomerate in India, the Times group, which is a family-owned business operated by the sons of the late Ms Indu Jain, Mr Samir Jain and Mr Vineet Jain, and their families. BCCL, along with its group companies, has diversified into various media and entertainment businesses (print, television, radio, music, OOH advertising, and the Internet). Newspaper publishing is the largest business segment of BCCL. |
Key Financial Indicators
^company does not have any debt; NM- Not meaningful *excluding impact of restatement of financials with Ind-AS 103 impact due to amalgamation with Gamma Ganna Ltd |
Any other information: Not Applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
#Yet to be issued |
Annexure – List of entities consolidated
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| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||||||
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Criteria Details
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