PVR-Inox: PVR-Inox, the leading company running cinema halls, is planning to shut down around 50 loss-making screens. PVR-Inox also said that it plans to open 150 to 175 screens in the current financial year 2023-24.
“The company plans to close 50 cinema screens in the next six months,” PVR-Inox said in a filing to investors for the financial year ending March 31, 2023.
Why is the company shutting down this cinema screen
These cinema halls are either in loss or are in shopping malls where their life span is nearing its end. There is little hope of bringing them back on track. PVR-Inox Limited came into existence after the merger of two leading cinema brands PVR Limited and Inox Leisure. The merger became effective on February 6, 2023.
The merged entity operates 361 cinema halls across 115 cities in India and Sri Lanka with 1,698 screens. Karan Turani, senior vice-president, Elara Capital, said, “The closure of 50 screens will impact earnings before tax (EBITDA) of Rs 10 crore.”
The company also plans to open 150 to 175 screens.
These screens are in big and medium cities. PVR Inox also said that it plans to open 150 to 175 screens in the current financial year 2023-24. According to the company, “Out of this, nine screens have been opened so far. In case of 15 screens, license is awaited for commercial operations. Work on 152 screens is in various stages.”
How were the quarterly results of PVR Inox Limited
PVR Inox Limited (formerly known as PVR Limited) reported a consolidated net loss of Rs 333.99 crore for the fourth quarter ended March 31, 2023. PVR Inox gave this information in a regulatory filing. The company had reported a net loss of Rs 105.49 crore in the January-March period a year ago.
Know the figures of the company’s quarterly results
During the quarter under review, the company’s operating income stood at Rs 1,143.17 crore, as against Rs 536.17 crore in the year-ago period. During the quarter ending March 2023, two leading cinema exhibitors PVR Limited and Inox Leisure merged to form a new identity PVR INOX Limited. The information states that the merger was effective from February 6, 2023, so the results are not comparable. The total expenses of PVR Inox stood at Rs 1,364.11 crore in the fourth quarter of FY 2022-23. Its total income in the March quarter stood at Rs 1,164.92 crore.
