Inox Leisure Q3 net loss widens, revenue increases
Net loss stood at Rs 83 crore, while revenue was Rs 21 crore
Inox Leisure has widened its net loss for the third quarter ending 31st December 2020 to Rs 83 crore from Rs 48 crore in the trailing quarter ending 30th September 2020. Operating loss for the quarter rose to Rs 79 crore as against Rs 30 crore in Q2 FY21.
Revenue increased to Rs 21 crore from Rs 5 crore as multiplexes are limping back to normalcy. The third quarter saw the partial resumption of cinema operations after a prolonged COVID-induced lockdown for more than seven months. The impact of seating restrictions to 50% and lack of fresh content showed a visible impact on the company’s performance.
In Q3, the company executed a successful completion of fundraising of Rs. 250 crore through a Qualified Institutional Placement (QIP). The QIP opened for subscription on 9th November and closed on 12th November, and was over-subscribed by 3.5 times. INOX allotted 9,803,921 shares of the face value of Rs 10.00 each to eligible Qualified Institutional Buyers (QIBs) at Rs 255 per share.
With the Ministry of Home Affairs allowing enhancement of seating capacity and the subsequent guidelines issued by Information & Broadcasting Ministry (MIB) permitting 100% seating w.e.f 1st Feb, the company expects studios and producers to promptly announce the release dates of the movies, triggering a rapid turnaround. The Company has already witnessed early signs of resurgence with South Indian movies Master, Solo Brathuke So Better, Krack & Red, and Hollywood movies like Tenet & Wonder Woman 1984 attracting large audiences in good numbers, not just in the Southern regions, but across the country.
Inox Group Executive Director Siddharth Jain said, “The Indian cinema industry is known for its tremendous creative might and the passion & emotion which has been fuelling its growth for over a century now. We are absolutely confident that these factors will now take the center stage and help us make a comeback, which would be swift, smooth, and profitable. Thanks to the positive decisions made by the Govt of India on seating capacity, the Indian cinema industry is all set to witness its hay days once again.
"Content, which has always been a vital element in our business, will come to the forefront and play its part, making 2021 the Year of Cinema Entertainment. At this crucial juncture, as we resume our resurgence, with great content and newer cinemas, I take the opportunity to thank all the stakeholders, including Government authorities, real estate partners, movie producers, and supply chain partners, for standing with us through this difficult phase. I also thank our teams working tirelessly across the country, only to ensure that our guests continue to have a safe cinema experience.”
With an assured and extremely rich pipeline with movies in all genres and languages, the company has pinned hopes on the FY22, calling it the Year of Cinema Entertainment. With 50+ titles in Hindi and other Indian languages each expected to hit the screens in 2021, complemented with an extremely rich and exciting Hollywood release pipeline, the industry is poised to see major blockbusters at regular intervals throughout the year.
The company has also resumed its new screen addition on a rigorous note with the opening of 4 new cinemas with 15 screens in Gurugram (2), Salem and Thane. The Company hopes to add another 14 screens before the end of FY21 or during Q1 FY22.
With an objective to keep the costs under a check, the company has implemented active cost control measures and brought down major expenses including Employee Costs, Power & Fuel Costs, and Rentals & CAM Charges. The company has continued to engage with key stakeholders including Landlords - for waiver of rentals and implementation of revenue sharing model for the current Financial Year and with Film Producers - to ensure the availability of ample fresh content for exhibition.
The company has ensured that the revised SOPs prescribed by the MIB is implemented in a stringent manner. The company has also initiated a number of technology initiatives to ensure that physical contacts are reduced while experiences become seamless.
