Mukta Arts group EBITDA grows by over 45% in FY16

In their results for the year 2015-2016, the Mukta Arts group announced a 45%+ increase in EBITDA for the year ended March 2016. The company has seen its subsidiary Whistling Woods International and its division Mukta A2 Cinemas post substantially higher EBITDA growth, which has contributed to a higher consolidated EBITDA.

Mukta A2 Cinemas, a division of Mukta Arts Limited, has seen its topline grow over 45% as it increased its pan-India properties to 13 and screens to 36. The division showed strong growth in EBITDA as well with improved operating margins and was profitable at a net level after depreciation. The division will further expand both overseas & within India in the coming months, with properties scheduled to open in Bahrain, Mumbai, Aurangabad, Dehradun & Panvel.

Whistling Woods International, an 85% subsidiary of Mukta Arts Limited, saw its EBITDA increase 15% in the period and saw its topline grow more than 21% on the back of its degree tie-up with the Tata Institute of Social Sciences (TISS) which has led to student numbers at the Institute rise to over 700 students. Strong operating efficiencies have resulted in the company retaining its EBITDA margins at 24%-25%.

Overall Mukta Arts reported a net loss at the standalone level of 1.75Cr and at consolidated level of Rs 2.98cr on account of higher depreciation from the cinema division, but these loss numbers show a substantial improvement on last year's loss of 7.72Cr & 9.06Cr respectively. The increased toplines & EBITDA margins of the respective businesses show that the company is on the right path to grow in diversified segments of the Film, Entertainment & Education verticals.