New Delhi: Cinema exhibitor PVR Inox Ltd on Tuesday reported a consolidated loss after tax of Rs 129.7 crore in the March quarter.
The company, which had reported a consolidated loss after tax of Rs 334 crore in the same quarter a year ago, said it is pursuing a lean organizational structure and monetization of real estate assets along with other steps as part of four key strategic Also consider reducing overhead costs. The priorities that have been identified for its growth strategy in the medium to long term perspective.
Consolidated revenue from operations in the March quarter stood at Rs 1,256. Ten million. This stood at Rs 1,143.2 crore in the year-ago period, PVR-INOX said in a regulatory filing.PVR-INOX's total expenses in the quarter stood at Rs 1,480.7 crore. PVR's total expenses last year were Rs 1,364.1 crore a year earlier.
For the financial year ending March 31, 2024, the consolidated loss after tax stood at Rs 32.7 crore. It was Rs 336.4 crore in the year ending 31 March 2023.
In FY24, consolidated revenue from operations stood at Rs 6,107.1 crore. I FY23, it was Rs 3,750.6 crore.The effective date of the merger of PVR Ltd and INOX Leisur Ltd is February 6, 2023, the company said.
As a result, FY24 results for the company have been reported for PVR INOX on a merger basis and are not comparable with prior periods.
"Box office collections witnessed significant volatility during the year. The quarter ending March 2024 was the weakest quarter of the year," it said.
It said the ongoing general elections have also impacted the flow of new releases in the current quarter, which is expected to stabilize by mid-June.During the year, the company opened 130 new screens and closed 8 underperforming screens, resulting in a net addition of 45 screens.
Currently, it has 1,748 screens in 360 theaters across 112 cities in India and Sri Lanka.
PVR Inox said it has identified four key strategic priorities for its businesses that "will act as guiding positions for our growth strategy from a medium-long-term perspective".
The first would be to improve the profitability of the existing circuit through revenue enhancement through box office initiatives like 'Movie Passport', 'Cinema Lovers' Day', screening of alternative content like film festivals, live concerts, major sports and other events.
Second, the company said it would focus on reducing costs by renegotiating the rents of operating theaters, closing underperforming theaters, reducing overhead costs, and a lean organizational structure.The company will adopt 'Capital Light' model which aims to reduce annual capex by exploring alternative models such as FOC (Franchise Owned, Company Operated) and partnering with developers for joint investment in new screen capex as the third priority .
The fourth priority is to become net debt free in the next few years, it added, “In this context, we are also evaluating monetization of company-owned real estate assets and using the proceeds to leverage leverage ".
“As envisaged above, the key strategic priorities will help the company chart a new, less capital intensive and incrementally profitable growth path. Our endeavor is to redefine our growth strategy, based on fixed cost reductions The focus is to improve profitability resulting in increased returns on capital and free cash flow generation,” said Ajay Bijli, Managing Director, PVR Inox."
The company, which had reported a consolidated loss after tax of Rs 334 crore in the same quarter a year ago, said it is pursuing a lean organizational structure and monetization of real estate assets along with other steps as part of four key strategic Also consider reducing overhead costs. The priorities that have been identified for its growth strategy in the medium to long term perspective.
Consolidated revenue from operations in the March quarter stood at Rs 1,256. Ten million. This stood at Rs 1,143.2 crore in the year-ago period, PVR-INOX said in a regulatory filing.PVR-INOX's total expenses in the quarter stood at Rs 1,480.7 crore. PVR's total expenses last year were Rs 1,364.1 crore a year earlier.
For the financial year ending March 31, 2024, the consolidated loss after tax stood at Rs 32.7 crore. It was Rs 336.4 crore in the year ending 31 March 2023.
In FY24, consolidated revenue from operations stood at Rs 6,107.1 crore. I FY23, it was Rs 3,750.6 crore.The effective date of the merger of PVR Ltd and INOX Leisur Ltd is February 6, 2023, the company said.
As a result, FY24 results for the company have been reported for PVR INOX on a merger basis and are not comparable with prior periods.
"Box office collections witnessed significant volatility during the year. The quarter ending March 2024 was the weakest quarter of the year," it said.
It said the ongoing general elections have also impacted the flow of new releases in the current quarter, which is expected to stabilize by mid-June.During the year, the company opened 130 new screens and closed 8 underperforming screens, resulting in a net addition of 45 screens.
Currently, it has 1,748 screens in 360 theaters across 112 cities in India and Sri Lanka.
PVR Inox said it has identified four key strategic priorities for its businesses that "will act as guiding positions for our growth strategy from a medium-long-term perspective".
The first would be to improve the profitability of the existing circuit through revenue enhancement through box office initiatives like 'Movie Passport', 'Cinema Lovers' Day', screening of alternative content like film festivals, live concerts, major sports and other events.
Second, the company said it would focus on reducing costs by renegotiating the rents of operating theaters, closing underperforming theaters, reducing overhead costs, and a lean organizational structure.The company will adopt 'Capital Light' model which aims to reduce annual capex by exploring alternative models such as FOC (Franchise Owned, Company Operated) and partnering with developers for joint investment in new screen capex as the third priority .
The fourth priority is to become net debt free in the next few years, it added, “In this context, we are also evaluating monetization of company-owned real estate assets and using the proceeds to leverage leverage ".
“As envisaged above, the key strategic priorities will help the company chart a new, less capital intensive and incrementally profitable growth path. Our endeavor is to redefine our growth strategy, based on fixed cost reductions The focus is to improve profitability resulting in increased returns on capital and free cash flow generation,” said Ajay Bijli, Managing Director, PVR Inox."
