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Tag: Mukta Arts Limited

  • Q3-2015: Mukta Arts’ PAT Rs 21.21 crore despite drop in y-o-y revenue

    Q3-2015: Mukta Arts’ PAT Rs 21.21 crore despite drop in y-o-y revenue

    BENGALURU: Mukta Arts Limited (MAL) reported a Profit after Tax (PAT) of Rs 21.21 crore for the quarter ended 31 December, 2014 (Q3-2015, current quarter) as compared to the Rs 0.92 crore in Q3-2014 and a loss of Rs 0.03 crore in the immediate trailing quarter Q2-2015. However for the nine month period ended 31 December, 2014 (9M-2015, YTD), MAL reported a loss of Rs 3.45 crore as compared to PAT of Rs 1.83 crore in 9M-2014. The higher profit for the current quarter could be attributed to the lower distributors and producer’s share paid by the company, which in most quarters equals or exceeds 90 per cent of the company’s operating income (TIO)

     

    Notes:  100,00,000 = 100 lakh = 10 million = 1 crore

     

    The company’s TIO for Q3-2015 at Rs 44.40 crore was 42.1 per cent lower than the Rs 76.67 crore in the corresponding year ago quarter, but 85.4 per cent more than the Rs 23.95 crore in the preceding quarter. MAL’s 9M-2015 TIO was a massive 60 per cent lower at Rs 93.33 crore versus the Rs 233.27 crore in the corresponding period of last year. TIO for Q3-2015 includes sale of certain rights by the company for Rs 3.5 crore.

     

    The company’s total expenditure (TE) in the current quarter was 70 per cent lower at Rs 23.05 crore (51.9 per cent of TIO) as compared to the Rs 76.16 crore (99.9 per cent of TIO) in Q3-2014 and 2.9 per cent lower than the Rs 23.74 crore (99.1 per cent of TIO) in the trailing quarter. In 9M-2015, TE at Rs 96.54 crore (103.2 per cent of TIO) was 58.4 per cent lower than the Rs 231.55 crore (99.3 per cent of TIO) in 9M-2014.

     

    A major component of MAL’s TE is distributors and producer’s share (distributors share). For Q3-2015, MAL spent Rs 13.23 crore (29.8 per cent of TIO), less than a fifth (19.2 per cent) of the Rs 69.98 crore (90 per cent of TIO) spent in Q3-2014, but more than double (2.3 times) the Rs 5.74 crore (24 per cent of TIO). For 9M-2015, distributors share at Rs 43.02 crore (45 per cent of TIO) was again a fraction less than a fifth of the Rs 212.13 crore (90.9 per cent of TIO) in 9M-2014.

     

    Other expense in Q3-2015 at Rs 4.92 crore (11.1 per cent of TIO) was 26.4 per cent higher than the Rs 3.89 crore (5.1 per cent of TIO) in Q3-2014, but 5.1 per cent lower than the Rs 5.19 crore (21.7 per cent of TIO) in Q2-2015. During 9M-2015, the company’s other expense at Rs 13.72 crore (14.7 per cent of TIO) was 45.7 per cent higher than the Rs 9.42 crore (4 per cent of TIO) in 9M-2014.

     

    MAL paid 61.9 per cent more towards finance costs in Q3-2015 at Rs 2.43 crore (5.5 per cent of TIO) as compared to the Rs 1.50 crore (2 per cent of TIO) in Q3-2014 and 15.2 per cent more than the Rs 2.11 crore (8.8 per cent of TIO) in Q2-2015. For 9M-2015, finance cost at Rs 6.51 crore (7 per cent of TIO) was 54.4 per cent more than the Rs 4.22 crore (1.8 per cent of TIO) in 9M-2014.

     

    Four divisions contribute to MAL’s numbers – Software division; Equipment Division; Theatrical Exhibition Division; others (Rent). Software and ‘Others’ divisions contributed positive results – operating profits, while the other two reported operating loss. Software division is a major contributor to revenue and results. In Q3-2015, MAL’s Software division reported revenue of Rs 33.56 crore, which was 44.3 per cent lower than the Rs 60.24 crore in Q3-2014, but almost 2.5 times (2.42) the Rs 13.89 crore in Q2-2015. For 9M-2015, Software Division revenue at Rs 64.21 crore was less than a third (1/3.35) the Rs 214.83 crore in 9M-2014.

     

    Software division reported operating profit of Rs 21.35 crore in Q3-2015 as compared to an operating loss of Rs 0.73 crore in Q3-2014 and an operating profit of Rs 0.33 crore in Q2-2015. For 9M-2015, operating loss from this division was Rs 3.35 crore as compared to an operating profit of Rs 0.31 crore in 9M-2014.

     

    Equipment division contributed a very small amount to revenue and operating results of MAL. Theatrical division reported revenue of Rs 8.91 crore, which was 9.8 per cent more than the Rs 8.11 crore in Q3-2014 and 72.6 per cent more than the Rs 5.16 crore in Q2-2015. 9M-201 revenue from this segment at Rs 23.35 crore was 88.8 per cent more than the Rs 12.36 crore in 9M-2014.

     

    Theatrical division reported operating loss of Rs 0.16 crore in Q3-2015 as compared to operating profit of Rs 0.37 crore in Q3-2014 and an operating profit of Rs 0.07 crore in Q2-2015. For 9M-2015, this division reported operating loss of Rs 0.23 crore as compared to an operating profit of Rs 0.21 crore in 9M-2014.

     

    Revenue and operating results from ‘Others’ division was Rs 1.84 crore and an operating profit of Rs 1.49 crore in Q3-2015; revenue of Rs 2.18 crore and operating profit of Rs 1.7 crore in Q3-2014; Revenue of Rs 1.85 crore and operating profit of Rs 1.68 crore in Q2-2015; Revenue of Rs 5.55 crore and operating profit of Rs 4.74 crore in 9M-2015; revenue of Rs 5.67 crore and operating profit of Rs 4.64 crore in 9M-2014. 

  • Mukta A2 Cinemas launches first property in Bhopal

    Mukta A2 Cinemas launches first property in Bhopal

    MUMBAI: Mukta Arts has launched its 10th high tech multiplex in Bhopal on 14 November at People’s Mall.

    Commenting on the launch, Mukta Arts chairman Subhash Ghai said, “My hearty congratulations to our brilliant team of Mukta A2 Cinemas on the opening its 10th high tech multiplex in Bhopal on November 14, 204. This year, Mukta Arts has recently celebrated its 37th anniversary in show business of India and its feels great that Mukta A2 Cinemas is launching its 10th property in the same year.”

    Spread across 23,000 square feet with four screens and a seating capacity of 775, the theatre boasts of comfortable recliner seats at affordable prices, which is an exclusive offering to the movie going audience in Bhopal. The property also offers state-of-the-art technology with Dolby digital sound complimented by a soothing ambience with comfortable seating and an exciting variety of F&B options.
    In terms of marketing, the brand is reaching out to movie lovers by means of hoardings, bus branding, television tickers and newspaper advertisements.

    Speaking about the launch, Mukta Arts MD Rahul Puri commented, “It’s with great pleasure that Mukta A2 Cinemas opens its 10th property in the wonderful city of Bhopal. The people of this terrific city can now enjoy great movies in the comfort of a world class theatre at extremely competitive prices. The theatre is also in the heart of the City – People’s Mall, poised to be on the city’s retail hotspots.”

    Mukta Arts is one of the leading players in the Indian film production and distribution industry. It has also ventured into launching its own brand of multiplex theatres, Mukta A2 Cinemas, which is spread across 28 screens in India. The existing screens located in Ahmedabad, Baroda, Gulbarga, Vishakapatnam, Banswara, Sailu, Hyderabad and Sangli has received a tremendous response and strengthened the company’s goal to provide an enriching movie-watching experience.

    As part of their impending plans, Mukta A2 Cinemas aims to launch in cities like Mumbai, Gurgaon, Dehradun and Aurangabad, promising the best movie experiences to movie lovers.

     

  • Software and Equipment segments pull down Mukta Arts Q3-2014 profit

    Software and Equipment segments pull down Mukta Arts Q3-2014 profit

    BENGALURU:  Mukta Arts Limited (Mukta Arts) Software division reported a loss of Rs (0.73) crore on operating revenue of Rs 62.49 crore for the quarter ended 31 December, 2013 (Q3-2014) which eroded the operating profits of Rs 0.37 crore and Rs 1.70 crore reported by the company’s Theatrical division and ‘Others’ division respectively. The fourth segment that contributes to Mukta Ars numbers – Equipment division also ate into the Q3-2014 operating profit to the extent of Rs (0.15) crore. Mukta Arts reported an operating profit of Rs 0.92 crore for the current quarter. 

     

    Let us look at the Q3-2014 numbers reported by Mukta Arts 

     

    The company reported Total Operating revenue of Rs 76.67 crore in Q3-2014, which was 6.27 per cent more than the Rs 72.14 crore in Q3-2013 and (9.97) per cent lower than the Rs 85.16 crore in Q2-2014. During the nine month period ended 31 December 2013, Mukta Arts Total Operating revenue at Rs 223.27 crore was 17.28 per cent more than the Rs 198.90 crore in the corresponding period of last fiscal. For FY-2013, the company reported Total Operating revenue of Rs 257.82 crore.

     

    Mukta Arts Total expense for Q3-2014 at Rs 76.61 crore was 15.41 per cent more than the Rs 66.38 crore in Q3-2013 and (9.45) per cent lower than the Rs 84.61 crore in Q2-2014. Total expense YTD at Rs 231.55 crore was 20.78 per cent more than the Rs 191.71 crore reported during the corresponding nine month period of last year. For FY 2013, the company reported Total expense of Rs 253.61 crore. 

     

    More than 90 per cent of Mukta Arts expense and more than 85 per cent of Total Operating revenue is the Distributors and Producers share. In Q4-2014, the company paid Rs 68.98 crore (90.04 per cent of Total expense, and 89.97 per cent of operating revenue for the quarter) towards this head, which was 11.85 per cent higher than the Rs 61.67 crore (92.91 per cent of Total expense and 85.48 per cent of Total operating revenue for the quarter) in Q3-2013 and (11.81) per cent lower than the Rs 78.21 crore (92.44 per cent of total expense and 91.85 per cent of Total operating revenue for the quarter) in Q2-2014. 

     

    Distributors and Producers share for the nine month period ended 31 December 2013 at Rs 212.13 crore (91.61 per cent of Total expense and 90.94 per cent of Total operating revenue for the period) was 17.85 per cent more than the Rs 180.01 cores (93.90 per cent of Total expense and 90.50 per cent of Total operating revenue for the period) of the corresponding nine month period of last year.

     

    For FY 2013, Mukta Arts paid Rs 233.74 crore towards Distributors and Producers share, which was 92.16 per cent of Total expense and 90.66 per cent of Total Operating revenue.

     

     Segment Revenue

     

    The lion’s share of Mukta Arts revenue – more than 90 per cent comes from its Software segment. This segment reported revenue of Rs 69.24 crore (90.31 per cent of Total operating revenue) for Q3-2014 which was 1.21 per cent more than the Rs 68.41 crore (94.83 per cent of Total Operating revenue) for Q3-2013, but (13.09) per cent lower than the Rs 79.67 crore (93.55 per cent of Total operating revenue) during Q2-2014. 

     

    For the nine month period ended 31 December 2013, the Software division’s revenue at Rs 214.83 crore (92.1 per cent of Total operating revenue) was 11.93 per cent more than the Rs 191.93 crore in the corresponding period of last year. For FY 2013, Mukta Arts Software division’s revenue was Rs 246.47 crore or 95.6 per cent of total revenue. 

     

    As mentioned above, this segment reported an operating loss of Rs 0.73 crore for Q3-2014 as compared to an operating profit of Rs 6.74 crore in Q3-2013 and an operating profit of Rs 0.35 crore in Q2-2014. For the nine month period ended 31 December 2013, the Software segment reported an operating profit of Rs 0.31 crore which was more than 31 times (31.51 times) lower than the Rs 9.86 crore operating profit reported during the corresponding period of last year. For FY 2013, Mukta Arts Software Division reported an operating profit of Rs 8.10 crore.

     

     Mukta Arts Theatrical Exhibition segment reported operating revenue of Rs 5.16 crore and an operating profit of Rs 0.37 crore for Q3-2014 as compared to the revenue of Rs 2.46 crore and an operating profit of Rs 0.14 crore for Q3-2013 and an operating revenue of Rs 3.52 crore and an operating loss of Rs (0.14) crore in Q2-2014. YTD, its operating revenue was Rs 12.3 crore and an operating profit of Rs 0.21 crore as compared to the revenue of Rs 2.62 crore and operating profit of Rs 0.66 lakh (Rs 100 lakh = Rs 1 crore: Rs 100,000 = Rs 1 Lakh) for the corresponding period of last year. For FY 2013, the Theatrical exhibition segment reported revenue of Rs 5.24 crore and a small operating loss of Rs (-6.61) lakh 

     

    The contribution by Mukta Arts Equipment division was a very small fragment of per cent to total revenue. As reported above, this segment reported a loss of Rs (0.15) crore for Q3-2014, loss of Rs (0.16) crore in Q3-2013 and equally small fractions for the other periods. 

     

    Mukta Arts ‘Others’ segment reported operating revenue of Rs 2.17 crore and an operating profit of Rs 1.70 crore for Q3-2014. y-o-y, this segment reported revenue of Rs 1.20 crore and an operating profit of Rs 0.99 crore, and q-o-q the revenue was Rs 1.79 crore and an operating profit of Rs 1.54 crore. YTD, revenue from this segment was Rs 5.67 crore and an operating profit of Rs 4.64 crore as compared to the operating revenue of Rs 4.04 crore and an operating profit of Rs 3.42 crore during the corresponding nine month period month of last year. For FY-2013, ‘Others’ segment reported revenue of Rs 5.74 crore and an operating profit of Rs 4.94 crore. 

     

    During the quarter the Company has commenced its cinemas at Mumbai, Selu, Junnar and Banswara.

     

    Click here for the financials

  • Mukta Arts PAT 0.2% for Q2-2014 despite higher q-o-q income

    Mukta Arts PAT 0.2% for Q2-2014 despite higher q-o-q income

    BENGALURU: Mukta Arts Limited (MAL) announced a PAT of Rs 0.1632 crore and total income from operations of Rs 85.16 crore for Q2-2014, which translates roughly to 0.19 per cent. Revenue for Q1-2014 was lower by 19.2 per cent at Rs 71.45 crore, and for the corresponding quarter last year (Q2-2013) it was 11.8 per cent lower at Rs 76.14 crore. Last quarter (Q1-2014) the company had reported a PAT of Rs 0.74 crore or 1.04 per cent of total income from operations.

     

    Let us take a look at the other figures reported for Q2-2014 by MAL

     

    Total expense for Q2-2014 at Rs 84.61 crore was 12.9 per cent higher than the Rs 74.95 crore for Q2-2013 and 20.3 per cent more than the Rs 70.34 crore for Q1-2014.

     

    The largest chunk of expense is producers/distributors share in the case of MAL. The company has reported Rs 78.21 crore (91.8 per cent of total income from operations) towards this head for Q2-2014, which was 8.6 per cent higher than the Rs 72.04 crore (94.6 per cent of total income from operations) for Q2-2013, and 20.4 per cent more than the Rs 64.94 crore (90.9 per cent of total income from operations) for the immediate preceding quarter (Q1-2014).

     

    Segment Revenue

     

    Four segments – Software division; Equipment division; Theatrical Exhibition division; and Others are responsible for revenue for MAL.

     

    MAL’s software division reported revenue of Rs 79.67 crore for Q2-2014, 6.7 per cent higher y-o-y as compared to the Rs 74.75 crore for Q2-2013 and 20.8 per cent higher than the Rs 65.92 crore for Q1-2014. Despite the higher revenue, profit from this segment was less than a fourth (4.21 times less) at Rs 0.35 crore for Q2-2014 as compared to the Rs 1.46 crore for Q1-2013 and just about half the Rs 9.29 crore for Q1-2014.

     

    Its theatrical segment saw a huge jump in revenue at Rs 3.52 crore for Q2-2014 as compared to the Rs 0.1545 crore for Q2-2014, but was 4.3 per cent lower than the Rs 3.68 crore for Q1-2014. This segment saw a loss of Rs (-0.25) crore for Q2-2014 as compared to a profit of Rs 0.08 crore for Q1-2014 and a loss of Rs (-0.04) crore for Q2-2013.

     

    Revenue and results from the other segments was a minor fraction of the overall revenue.

  • Mukta Arts PAT at 1.04 per cent of income from ops for Q1-2014

    Mukta Arts PAT at 1.04 per cent of income from ops for Q1-2014

    BENGALURU: Mukta Arts Limited (MAL) announced a PAT of Rs 0.74 crore and total income from operations of Rs 71.45 crore for Q1-2014, which translates roughly to 1.04 per cent for Q1-2014. A major chunk (63.1 per cent) of this PAT – Rs 0.47 crore for Q1-2014, came from discontinuing operations (see Notes (3) below).

     

    PAT percentage for Q1-2013 was slightly higher at 1.21 per cent of total revenue, but numerically lower than Q1-2014 – PAT for Q1-2013 was Rs 0.59 crore, total income from operations was Rs 48.98 crore. Discontinuing operations added Rs 0.39 crore or 65.25 per cent of total PAT for Q1-2013.

     

    MAL incurred loss of Rs 2.49 crore in Q4-2013. Loss from discontinuing operations added Rs 0.38 crore or 15.15 per cent to the loss for Q4-2013.

     

    For FY-2013, MAL had total income from operations of Rs 257.82 crore and a PAT of Rs 2.90 crore, hence PAT was 1.13 per cent of total income from operations. Discontinuing operations added Rs 1.12 crore or 38.6 per cent to total PAT for FY-2013.

     

    Let us take a look at MAL’s other figures for Q1-2014

     

    Total income from operations for Q1-2014 at Rs 71.45 crore increased by 45.9 per cent as compared to the Rs 48.98 crore for Q1-2013 and 21.3 per cent as compared to the Rs 58.92 crore for Q4-2013. As mentioned above, MAL’s total income from operations for FY-2013 was Rs 257.82 crore.

     

    Total Expenditure for Q1-2014 at Rs 70.34 crore rose 42.2 per cent as compared to the Rs 49.39 crore for Q1-2013 and was 13.6 per cent more than the Rs 61.91 crore for Q4-2013.

     

    A major chunk of MAL’s expenditure is the Distributors and Producers share (DAPS). For Q1-2014, DAPS at Rs 64.94 crore (90.9 per cent of Total Income from operations) was 40.2 per cent more than the Rs 46.32 crore (94.6 per cent of Total Income from operations) for Q1-2013 and 20.9 per cent higher than the Rs 53.73 crore (91.2 per cent of Total Income from operations). For FY-2013, MAL had reported a DAPS of Rs 233.74 crore or 90.7 per cent of Total Income from operations.

     

    Segment Results

     

    Four segments – Software division; Equipment division; Theatrical Exhibition division; and Others are responsible for revenue for MAL.

     

    Revenue from MAL’s Software division contributes more than 90 per cent to its revenues. For Q1-2014, the Software division had revenue of Rs 65.92 crore (97.3 per cent of Total Income from operations), which was 34.9 per cent higher than the Rs 48.86 crore (96.5 per cent of Total Income from operations) for Q1-2013 and 20.9 per cent higher than the Rs 54.54 crore (92.6 per cent of Total Income from operations) for Q4-2013. For FY-2013, revenue from Software division at Rs 246.47 crore was 95.6 per cent of Total Income from operations.

     

    Revenues from MAL’s Equipment division and Theatrical Exhibition division were a small fraction at Rs 0.31 crore and Rs 3.68 crore respectively of overall revenues for Q1-2014 and have not been major contributors to MAL’s PAT for the quarter. Equipment division incurred a loss of Rs 0.06 crore in Q1-2014, while Theatrical division added Rs 0.08 crore to MAL’s profit before tax and finance costs.

     

    Revenue from ‘Other’ in Q1-2014 rose marginally (by 5.14 per cent) to Rs 1.71 crore from Rs 1.63 crore in Q1-2013 and was just 0.87 per cent higher than the Rs 1.70 crore for Q4-2013. This segment however added Rs 1.41 crore as compared to the Rs 0.69 crore from the Software division’s and formed a major chunk (66.25 per cent) of MAL’s profit before tax and finance costs for Q1-2014 at Rs 2.12 crore.

     

    NOTES: (1) In the matter of two PIL’s filed in the Bombay High Court, the Bombay High Court quashed the J.V. Agreement between Mukta Arts Limited (MAL) and Maharashtra Film Stage & Cultural Development Corporation Limited (MFSCDCL) and ordered Whistling Woods International (WWI) to return the 14.5 acre vacant land immediately and balance 5.5 acre land with structure by July 2014. Court also asked WWI to pay rent along with interest but allowed the same to be set off against market price of the building to be paid by Government as per valuation to be done. After Supreme Court of India dismissed the SLP filed by MAL against the impugned order, MAL & WWI have filed review petitions in Bombay High Court, which have not yet come up for hearing. MFSCDCL had demanded Rs 83.21 crore vide letter dated 3 December 2012, which has not been accounted for in view of the pending review petition referred to above. During the year 2012-13, the PWD Engineer has given his valuation report based on the Balance Sheet of WWI as at 31 March 2011. The said valuation report specifically mentions that market price is not considered.

     

    Further, MAL has made an application to the Government of Maharashtra in February 2013 to appoint expert valuers to determine the market price which in its view is the price to be determined by reading the directions in their proper perspective. Pending final disposal of the review petition and resolution of the above, and in view of the future plans for WWI which are being evaluated, management believes that the Company’s investments in WWI and amounts due therefrom are good and recoverable as management is hopeful of reliefs based on the issues involved and on merits of the case, as also of a high valuation of the building. The auditors continue to modify their report on the said matter.

     

    (2) Remuneration paid to the managing director of the Company for the year ended 31 March 2013 and for earlier financial years from 2005-06 to 2011-2012 is in excess of the limits prescribed under Schedule XIII to the Companies Act, 1956. The Company made applications to the Central Government seeking post-facto approval for earlier years, which is awaited; application for the year 2012-13 is proposed to be made. During the year 2011-12, the company had received approval for part of the excess remuneration paid. The company had made applications to the authorities requesting reconsideration/ approval for the balance excess remuneration. Pending final communication from the authorities in this regard and application for the year 2012-13, no adjustment has been made in these financial results. The auditors continue to modify their report on the said matter.

     

    (3) During the quarter ended 31 March 2013, the Board of Directors approved the formation, with another venturer, of a company as a subsidiary of Mukta Arts Limited to conduct the business of exhibition and programming currently being carried on by Mukta Arts Limited. The results of the said business have been disclosed as Discontinuing operations. Previous quarter’s/period’s figures have also been recast for comparative purposes.

     

    (4) Figures for the previous quarter/ period have been regrouped/ rearranged to conform to current quarter’s/ period’s presentation.