PVR INOX to Optimize Portfolio by Shutting 70 Underperforming Screens in FY25
The company plans to explore monetization of non-core real estate assets and add 120 new screens in FY25, with a focus on South India.
Multiplex OperatorPvr InoxProfitable GrowthCapitallight Growth ModelFranchiseowned And Companyoperated Foco ModelReal Estate NewsSep 01, 2024
In an attempt to optimize its portfolio, the firm is adding 120 new screens in FY25 while shutting 60-70 underperforming ones. Approximately 40 percent of new screen additions will be in South India, which will be a key focus area due to its relatively lower market penetration.
The company is shifting towards a capital-light growth model, aiming to cut its capital expenditure on new screens by 25 to 30 percent in the current fiscal year. Joint investment in new screen capex will be done with developers, with a shift towards a franchise-owned and company-operated (FOCO) model.
PVR INOX is also considering monetizing its owned real estate assets as part of its goal to become “net-debt free” in the near future. Managing Director Ajay Kumar Bijli and Executive Director Sanjeev Kumar stated that this involves a potential monetization of non-core real estate assets in prime locations.
Throughout the year, PVR INOX launched 130 new screens at 25 cinemas and closed 85 underperforming screens across 24 cinemas, aligning with its strategy for profitable growth. The company’s net debt stood at Rs 1,294 crore for FY24, with a reduction of Rs 136.4 crore in the previous fiscal year.
PVR INOX’s strategy is focused on optimizing its portfolio, with a focus on profitable growth. The company is committed to becoming net-debt free in the near future and is exploring various options to achieve this goal.
Information
PVR INOX is a leading multiplex operator in India, with a strong presence in the country’s film exhibition industry. The company has a large portfolio of screens across the country and is committed to providing a world-class cinematic experience to its customers.PVR INOX is a subsidiary of the PVR Group, a leading media and entertainment company in India. The company is listed on the Bombay Stock Exchange and the National Stock Exchange of India.
Frequently Asked Questions
How many screens will PVR INOX shut down in FY25?
PVR INOX will shut down 70 underperforming screens in FY25.
How many new screens will PVR INOX add in FY25?
PVR INOX will add 120 new screens in FY25.
What is PVR INOX’s strategy for growth?
PVR INOX is focused on profitable growth and is shifting towards a capital-light growth model.
What is the company’s goal for its net debt?
PVR INOX aims to become net-debt free in the near future.
How much did PVR INOX reduce its net debt in the previous fiscal year?
PVR INOX reduced its net debt by Rs 136.4 crore in the previous fiscal year.
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