Mukta Arts’ consolidated EBITDA margin up at 22% in Q2 FY2020

Mukta Arts’ consolidated EBITDA margin improved from 15 per cent to 22 per cent quarter on quarter for the second quarter ended September 30, 2019. However, profit before tax (PBT) was impacted by implementation of IndAS 116. 

Mukta Arts’ standalone revenue remained stable except for the sale of rights recorded in Q1. 

The subsidiaries in the cinema space, operating under the Mukta A2 brand in India and Bahrain, posted a consolidated turnover of Rs 2,643 lakh, up 7 per cent from Q1, with total screen count increasing to 58, while another 10 screens are operating under a joint venture in Telangana and Andhra Pradesh. While EBITDA margins of the subsidiaries improved to 19 per cent, three-fold increase in amortisation and finance cost because of implementation of IndAS 116 resulted in increase in losses before tax from Rs 152 lakh in Q1 to Rs 208 lakh in Q2. 

Whistling Woods International, its subsidiary in the education business, posted a 20 per cent growth in revenue from Rs 1,222 lakh in Q1 to Rs 1,470 lakh in Q2. Performance is not comparable with Q2 year-on-year because the impact of IndAS 115 had only been taken at the year-end. However, the entity continues to improve its bottomline with a strong 32 per cent EBITDA margin and 13 per cent PAT margin. Student count has also grown from 1,043 to 1,249.