Mukta Arts EBITDA dropped on 63.2% and EBITDA Margin dropped on 12.5 pp from 29.8% to 17.3%

26-05-2016 • About Mukta Arts ($MUKTAARTS) • By InTwits

Mukta Arts reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:

Mukta Arts is a company in decline: FY2016 revenue growth was -36.6%, 5 years revenue CAGR was -18.2%
EBITDA Margin is quite volatile: 17.3% in FY2016, 29.8% in FY2015, 1.0% in FY2014, 4.0% in FY2013, 6.4% in FY2012

Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

Mukta Arts's Revenue dropped on 36.6%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 12.5 pp from 29.8% to 17.3% in FY2016.

Net Income margin increased on 3.5 pp from -7.2% to -3.7% in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2015 at -7.2%.

Financial and operational results

Mukta Arts ($MUKTAARTS) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	2,197	2,688	2,909	1,209	766	-36.6%
EBITDA	141	109	28	361	133	-63.2%
Net Income	165	-14	-73	-87	-28
Balance Sheet
Cash	11	33
Short Term Debt	250	220
Long Term Debt	207	169
Cash flow
Capex	179
Ratios
Revenue growth	5.0%	22.4%	8.2%	-58.4%	-36.6%
EBITDA growth	-26.4%	-23.2%	-74.3%	1,193.3%	-63.2%

EBITDA Margin	6.4%	4.0%	1.0%	29.8%	17.3%	-12.5%
Net Income Margin	7.5%	-0.5%	-2.5%	-7.2%	-3.7%	3.5%
CAPEX, % of revenue	8.1%

ROIC	-4.8%	2.9%
ROE	29.4%	-2.2%
Net Debt/EBITDA	3.2x	3.3x	0.0x	0.0x	0.0x

Peers in Movies & Entertainment

Below we provide Mukta Arts benchmarking against other companies in Movies & Entertainment industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.

Top companies by Revenue growth, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Prime Focus ($PFOCUS)	53.5%	-1.3%	10.8%	82.2%	-
Eros International Media ($EROSMEDIA)	33.5%	13.1%	6.2%	25.3%	-
Shemaroo Entertainment ($SHEMAROO)	-	18.0%	23.2%	21.7%	16.2%
Saregama India ($SAREGAMA)	-	16.1%	-4.6%	5.1%	18.7%
Dq Entertainment (International) ($DQE)	9.3%	1.0%	4.5%	-40.6%	-
Median (6 companies)	33.5%	14.6%	8.5%	13.4%	16.2%
Mukta Arts ($MUKTAARTS)	-	22.4%	8.2%	-58.4%	-36.6%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Eros International Media ($EROSMEDIA)	61.2%	65.7%	67.6%	61.2%	-
Picturehouse Media ($PICTUREHS)	-	-	-	54.1%	-
Dq Entertainment (International) ($DQE)	41.8%	48.8%	40.2%	50.5%	-
Sri Adhikari Brothers Television Network ($SABTN)	7.5%	24.7%	27.5%	43.7%	-
Shemaroo Entertainment ($SHEMAROO)	28.4%	27.3%	24.8%	27.1%	29.4%
Median (10 companies)	23.1%	26.2%	27.5%	22.6%	14.2%
Mukta Arts ($MUKTAARTS)	6.4%	4.0%	1.0%	29.8%	17.3%

Top companies by CAPEX/Revenue, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Sri Adhikari Brothers Television Network ($SABTN)	28.9%	5.1%	9.4%	126.7%	-
Prime Focus ($PFOCUS)	24.3%	19.8%	-	20.8%	-
Saregama India ($SAREGAMA)	2.7%	3.4%	4.3%	1.8%	3.3%
Shemaroo Entertainment ($SHEMAROO)	2.3%	0.9%	0.7%	0.7%	1.3%
Dq Entertainment (International) ($DQE)	5.5%	2.0%	0.0%	0.6%	-
Median (7 companies)	5.5%	2.7%	0.7%	0.7%	3.2%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Shemaroo Entertainment ($SHEMAROO)	23.5%	22.9%	21.0%	21.8%	21.3%
Eros International Media ($EROSMEDIA)	18.4%	15.2%	17.6%	17.7%	-
Picturehouse Media ($PICTUREHS)	15.6%	17.3%	16.9%	12.0%	-
Sri Adhikari Brothers Television Network ($SABTN)	-4.4%	7.1%	10.6%	4.8%	-
Saregama India ($SAREGAMA)	4.1%	1.7%	8.2%	3.4%	5.1%
Median (13 companies)	6.7%	8.4%	9.4%	4.8%	5.1%
Mukta Arts ($MUKTAARTS)	-4.8%	2.9%	-	-	-

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Picturehouse Media ($PICTUREHS)	6.2x	3.7x	3.4x	7.0x	0.0x
Dq Entertainment (International) ($DQE)	1.8x	1.9x	2.8x	5.0x	-
Prime Focus ($PFOCUS)	1.9x	3.5x	-	3.6x	-
Sri Adhikari Brothers Television Network ($SABTN)	16.1x	3.5x	2.5x	3.0x	-
Shemaroo Entertainment ($SHEMAROO)	1.7x	1.9x	2.3x	1.2x	1.8x
Median (9 companies)	1.9x	2.1x	2.3x	1.2x	0.0x
Mukta Arts ($MUKTAARTS)	3.2x	3.3x	0.0x	0.0x	0.0x

Mukta Arts stock price chart

Mukta Arts financials

mln.	FY2010	FY2011	FY2012

Revenue	1,423	2,092	2,197
EBITDA	266.9	192.0	141.3
Net income	-306.367	-96.489	164.5
CAPEX	216.9	378.6	178.5
Debt	554.7	745.0	456.7
Cash	16.255	9.291	11.030

About Mukta Arts

Mukta Arts Limited primarily engages in the production, distribution, and exhibition of films. It operates through five segments: Software, Equipment, Education, Theatrical exhibition, and Others. The Software segment is involved in the film/ TV production, distribution, and exhibition operations. This segment offers production/ co-production services for movies and allied productions; and acquires movie rights for overseas, as well as distributes in India for a fixed period. The Equipment segment hires production equipment, including generator vans, cameras, lights, grip equipment, remote control phoenix cranes, and location sync sound systems to other production houses and independent producers. The Education segment operates an education, research, and training institute that imparts training in various skills related to films, television, and media industries. The Theatrical exhibition segment operates and manages a chain of multiplexes and theaters. This segment also provides various services offered at theaters comprising sale of tickets, catering of food and beverages, etc. The Others segment engages in the facility rental business. The company was incorporated in 1982 and is based in Mumbai, India.