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.

Latest Reads
TV channels have to innovate to survive OTT threat: Sony Sab’s Neeraj Vyas

As competition in the GEC space continues to intensify, Sony Sab has been consistently launching new shows to keep viewers engaged. The second GEC from Sony's stable, Sab TV maintains that it is the only dessert in a thali overflowing with saas-bahu sagas.

Television TV Channels GECs
Do we need 24-hour news channels?

The news television industry has been getting a lot of negative publicity these days, the prime reason being the inflammatory content they are airing. Not just viewers, but several advertisers and marketers have also highlighted their discontent with the journalism these channels are doing and some...

Television TV Channels News Broadcasting
BARC India renames impressions to average minute audience (AMA)

Keeping in line with global television measurement standards, BARC India will transition from using the term ‘impressions’ to ‘average minute audience (AMA)’, in cognisance with the technical committee.

Television TV Channels Viewership
20th TV & Touchstone merged under Disney TV restructure

As the overall traditional media industry adjusts to the streaming age, Disney is the latest in line to consolidate its content creation across streaming and linear.

Television Production House Fiction
'3 out of 10 brands are saying no to advertising on news channels'

News channels have always been a big part of the media mix for any advertiser; they enjoy a sizeable share of eyeballs and have been known as a brand-safe space to be present on.

Television TV Channels News Broadcasting
Filmlance acquires TV rights to Karin Smirnoff's Jana Kippo trilogy

MUMBAI: Banijay has announced that scripted label Filmlance will adapt for television the critically-acclaimed Jana Kippo trilogy, penned by Swedish author Karin Smirnoff. The series of best-selling novels is set to be developed into a new Swedish drama with international potential. The producer is...

Television Production House Film Production
&PriveHD brings award-winning Spielberg feature 'Lincoln'

The present is shaped by the actions of individuals who have lead a revolution of change with their firm principles and integrity. Observing Wednesday, 2 December 2020

Television TV Channels English Entertainment
Prajwal PD and Anusha Hegde to enter 'Nagabhairavi'

MUMBAI: Zee Telugu’s Nagabhairavi has captivated audiences since its launch with spectacular VFX and the blossoming chemistry between Nagarjuna (Pawon) and Bhairavi (Yashmi Gowda). The story began with Bhairavi losing the magical amulet and moved forward with Pawon knowing his dream girl is...

Television TV Channels Regional
Sayani Gupta-starrer Shameless is India’s Oscar entry in short film category

After Lijo Jose Pellissery’s Jallikattu was selected as India's official entry to the 93rd Academy Awards in the International Feature Film category, another worthy contender has been picked for the Oscars’ short film category – Shameless.

Television TV Channels Movie Channels

Sign up for our Newsletter

subscribe for latest stories

* indicates required