PVR INOX to Shut 70 Underperforming Screens, Eyes Profitable Growth in FY25
Multiplex operator PVR INOX to close 70 non-performing screens, aims for profitable growth through strategic focus on South India and monetisation of non-core real estate assets.
Pvr InoxMultiplex OperatorScreen ExpansionProfitable GrowthSouth IndiaReal Estate AssetsMonetisationNet DebtMerger IntegrationFilm Exhibition IndustryReal Estate PuneSep 01, 2024
In addition to its screen expansion plans, PVR INOX is also evaluating the monetisation of its non-core real estate assets in prime locations such as Mumbai, Pune, and Vadodara. This move is part of the company's efforts to become a net-debt-free entity in the future.
During the previous year, PVR INOX opened 130 new screens across 25 cinemas and shut down 85 underperforming screens across 24 cinemas. The company's net debt in FY24 stood at Rs 1,294 crore, which it aims to reduce further.PVR INOX's revenue in FY24 was Rs 6,203.7 crore, with a loss of Rs 114.3 crore. The company has made significant progress on its merger integration, achieving around 80-90% of its targeted synergies.
In FY24, the company saw a 10% growth in ticket prices and an 11% increase in food and beverage spend per head. PVR INOX aims to restore its pre-pandemic operating margins and drive free cash flow generation.However, the company's consolidated net loss widened to Rs 179 crore in the June quarter of FY25 due to the postponement of film releases during the general elections. Despite this, PVR INOX remains committed to its strategic focus on profitable growth and expansion in the South Indian market.
The company's CFO, Gaurav Sharma, stated that despite reducing capital expenditure, PVR INOX will open around 110-120 screens in FY25 while exiting 60-70 underperforming screens. This move is part of the company's efforts to optimise its portfolio and drive profitability.In a statement, MD Ajay Kumar Bijli and Executive Director Sanjeev Kumar said, 'Our company's medium to long-term strategy will involve expanding the number of screens in South India due to the region's high demand for films and comparatively low number of multiplexes in comparison to other regions.'
PVR INOX's efforts to become a net-debt-free entity are expected to have a positive impact on its financial performance in the coming years. The company's strategic focus on profitable growth and expansion in the South Indian market is likely to drive its success in the competitive multiplex industry.
About PVR INOX
PVR INOX is a leading multiplex operator in India, with a presence in over 70 cities across the country. The company was formed through the merger of PVR and INOX Leisure in 2022. PVR INOX operates over 1,500 screens across its cinemas and aims to provide a premium cinematic experience to its customers.PVR INOX is a subsidiary of the Ajay Bijli-led PVR group. The company is listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). PVR INOX has a strong presence in the Indian film exhibition industry and is committed to providing a world-class cinematic experience to its customers.
Frequently Asked Questions
How many screens does PVR INOX plan to close in FY25?
PVR INOX plans to close around 60-70 underperforming screens in FY25.
What is PVR INOX's strategy for growth in FY25?
PVR INOX aims to drive profitable growth through its strategic focus on South India and the monetisation of non-core real estate assets.
What is the current net debt of PVR INOX?
PVR INOX's net debt in FY24 stood at Rs 1,294 crore.
How many screens does PVR INOX plan to open in FY25?
PVR INOX plans to open around 110-120 screens in FY25.
What is PVR INOX's goal for its financial performance in the coming years?
PVR INOX aims to become a net-debt-free entity and restore its pre-pandemic operating margins.
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