PVR INOX narrowed its consolidated net loss to ₹130 crore in the fourth quarter from ₹333 crore in the corresponding quarter previous fiscal. Consolidated revenue from operations grew 10 per cent to ₹1,256 crore. The company added that the March quarter was the “weakest quarter” while it witnessed “significant volatility” in box-office collections through the fiscal year.
Ajay Bijli, MD, PVR INOX Ltd, said, “We are focusing on key strategic priorities that should help the company in charting a new, less capital intensive and incrementally profitable growth path. Our endeavour is to redefine our growth strategy, focus on fixed cost reduction thus improving profitability resulting in enhanced return on capital and free cash flow generation.”
The company said it is reducing costs by renegotiating rentals, shutting down underperforming cinemas and reducing overhead costs. As part of this strategy, it shut down 85 underperforming screens while adding 130 new screens in FY24( net addition 45 screens). The multiplex player expects to shut down about 70 additional screens in FY25, it said in an investor presentation. Currently, the company oeprates 1,748 screens in 360 cinemas across 112 cities in India and Sri Lanka.
Also read: After SC judgment, Sterlite customer, Amritha Chemicals, shifts to Odisha
It is also adopting a ‘Capital Light’ model to reduce its annual capital expenditure by exploring models like FOCO (Franchisee owned, Company operated), partnering with developers for jointly investing in new screen capex. In a bid to become net debt-free over the next few years, it is also evaluating monetisation of real estate assets and using the proceeds to reduce leverage.
For the full financial year, FY 24, the company reported a consolidated net loss of ₹32 crore. Consolidated revenue from operations stood at ₹6,107 crore.
“The ongoing general election has also impacted the flow of new releases in the current quarter which is expected to stabilise by mid-June,” the company added.
Strategic Partnership
Meanwhile, the company has entered into a strategic agreement with leading QSR operator, Devyani International Ltd, to jointly establish a company in India for development and operation of food courts within shopping malls in India. Devyani International operates KFC, Pizza Hut and Costa Coffee restaurants.
“Through this opportunity, PVR INOX will be able to pivot into pre-ticketed F&B revenue stream as opposed to the current post ticketed F&B revenue that’s very movie line up dependent. It is our first of the many steps we intend to take to further expand our F&B business,” Bijli said.