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Tag: Inox Leisure

  • Inox reports 2Q loss of Rs 22 crore

    Inox reports 2Q loss of Rs 22 crore

    Mumbai: Hit by the poor performance of Bollywood, multiplex operator Inox Leisure has reported a second quarter 2023 fiscal loss of Rs 22 crore compared with a profit after tax of Rs 51 crore in the same period of the 2020 fiscal. When compared to the same period in the 2020 fiscal, Ebitda (earnings before interest, taxes, depreciation, and amortisation) fell by 97 percent to three crore rupees.

    Revenue dropped by 27 per cent to Rs 381 crore. While the spending per head went up by 29 per cent, the number of footfalls went down by 39 per cent. Occupancy was down by 13 per cent. The average ticket price rose by 10 per cent. Inox said that the 2021 and 2022 fiscals were hit by the pandemic, and therefore it has taken the 2020 fiscal as a comparison.

    Inox had a net profit of Rs 57.09 crore in the first quarter of the 2023 fiscal. Revenue from operations was Rs 582.26 crore in the first quarter of the 2023 fiscal.

    For the first half of the 2023 fiscal, profit after tax declined by 43 per cent to Rs 53 crore compared to the same period in the 2020 fiscal. Ebitda fell by 33 per cent to Rs 134 crore. Revenue fell marginally by five per cent to Rs 970 crore.

    The company said that it expects a great turnaround in the business going forward thanks to a content lineup in the upcoming quarters with releases like Ram Setu, Thank God, Drishyam 2, Bhedia, Phone Bhoot, Cirkus, Black Adam, Black Panther: Wakanda Forever, and Avatar: The Way of Water, complimented with consumer-centric innovations. The company added 30 screens in the first half of the fiscal, which it said was the highest screen addition in the industry. The company added two new properties with 13 screens in the second quarter; a 10-screen Inox Megaplex at Emerald Mall, Lucknow and a three-screen multiplex in Srinagar. Inox revived cinema in Kashmir after a gap of 32 years with the launch of the first multiplex in Srinagar. The three-screen cinema brings the contemporary giant-screen movie watching experience back to the region.

    Furthermore, the company plans to add 11 properties and 47 screens in FY23.

    The company reported its best ever quarterly SPH, which was largely driven by the rigorous efforts around F&B. Critical additions to the menu, introduction of seasonal specialties, timely and result-oriented marketing initiatives, interactive culinary sessions and workshops and numerous process innovations have led to a solid recovery on the F&B revenues.

    Inox Leisure director Siddharth Jain said, “Pandemic has taught us to remain battle-fit and come up with answers to difficult situations. The second quarter of FY23 was impacted by the inconsistency in the content value chain, proving the importance of great quality content yet again. We are delighted with our promising performance on the F&B front, with our highest ever quarterly spend per head. Our foray into Kashmir with the region’s first multiplex marked the revival of cinemas in the valley, and we are quite upbeat about this historic launch, which underlines our desire to entertain India across its length and breadth. The spectacular content pipeline, the festive fervour and our consistent rigour will certainly mark a celebratory third quarter for us.”

  • PVR gets shareholders approval for Inox merger

    PVR gets shareholders approval for Inox merger

    Mumbai: Multiplex operator PVR has received shareholders’ approval for its proposed merger with Inox Leisure. 99.9986 per cent voted in favour of the merger. It was defeated by a margin of 0.0014 per cent.

    Inox, in a filing, said that a meeting with equity shareholders took place. The company sought approval for the proposed merger. The results of the vote are expected to be announced in the coming days.

    The Inox said, “A meeting of the equity shareholders of the company was held on 12 October 2022 at 12 p.m. through video conferencing (VC)/other audio visual means (OA VM) as per the directions issued by the National Company Law Tribunal, Mumbai Bench, vide its order dated 22 August, 2022 and in compliance with the applicable provisions of the Companies Act, 2013 read with rules made thereunder, circular(s) issued by the ministry of corporate affairs and the Securities and Exchange Board of India, for transacting the business mentioned in the notice dated 10 September 2022 convening the said meeting (NCLT Convened Meeting). “

    In March, the two companies announced plans for a merger. Inox had said the merger would bring together two of India’s best cinema brands to deliver an unparalleled consumer experience with a network of more than 1,500 screens.

    Following the merger, Inox promoters will join the existing PVR promoters as co-promoters of the merged entity. According to the regulatory filing on 27, once the scheme is implemented, the board of directors of the merged company will be reconstituted with a total board strength of 10 members and equal representation on the board for both promoter families with two board seats each.

    The company will be called PVR Inox, with the branding of existing screens to continue as PVR and Inox, respectively. Ajay Bijli will be the managing director and Sanjeev Kumar Bijli will be the executive director. Pavan Kumar Jain will be the non-executive chairman of the board.

    Shareholders of Inox will get PVR shares in a pre-approved “swap” ratio of 3:10. Three equity shares of PVR can be swapped for 10 of Inox. Inox will have a 16.66 per cent stake and PVR will have a 10.62 per cent stake in PVR Inox.

  • Inox brings Asia Cup 2022 matches live on cinema screens

    Inox brings Asia Cup 2022 matches live on cinema screens

    Mumbai: Inox Leisure is geared up to give Indian cricket fans an exceptional stadium-like experience by broadcasting Asia Cup 2022 matches live on cinema screens.

    The 15th edition of the Asia Cup 2022, which will be played in the UAE, will begin on 27 August with the finals scheduled on 11 September. Inox will broadcast all Team India matches live at multiplexes in over 30 cities across India.

    Inox’s initiative to screen live matches will be a boon for fans who want to experience stadium energy in a carnival-like setting in a safe and hygienic environment.

    The air-conditioned comfort of the cinema hall will enhance their overall cricket viewing experience. While watching the matches, fans will be able to enjoy INOX’s extravagant food combinations and delectable gourmet options served at the multiplexes.

    Inox Leisure chief operating officer Anand Vishal said, “This Asia Cup 2022, Inox is all set to welcome the cricket fans to this unparalleled and stadium-like experience across the country. With this unique initiative, our aim is to provide our patrons with the feeling of pulsating energy as if they were in the stadium itself.”

    He added, “We are waiting to welcome cricket fans to our cinemas to come and watch the Asia Cup matches together on our giant screens, with fantastic surround sound, which will create an atmosphere like no other. Cricket is a religion in India, and the Asia Cup is one big festival, and we are delighted to bring the cricket action to the big screens at the Inox cinemas.”

  • Inox Leisure sees best quarterly performance in Q1 FY23; revenue up by 19 per cent

    Inox Leisure sees best quarterly performance in Q1 FY23; revenue up by 19 per cent

    Mumbai: Inox Leisure on Wednesday announced its first quarter results for financial year 2023. The company reported its best quarterly performance with revenue at Rs 589 crore up by 19 per cent year-on-year (YoY). It reported earnings before interest, tax, depreciation and amortisation (EBIDTA) at Rs 130 crore up by 41 per cent YoY and profit after tax (PAT) of Rs 74 crore soar by 80 per cent YoY.

    The company’s average ticket price (ATP) peaked at Rs 229 up by 16 per cent YoY and spends per head (SPH) stood at Rs 96 up by 19 per cent YoY.

    Inox reported its highest food and beverage (F&B) revenue at Rs 164 crore. It added three new properties and 17 screens during the quarter. The company also rolled out a merchandise business so fans can buy products from their favourite super hero or movie franchises.

    “After facing a severe impact on business due to the pandemic in the last two years, the company reported its best quarterly performance across majority metrics on the back of tent poles that resonated with Indian audience, duly complemented by their huge pent-up appetite,” said the statement.

    The April-May-June quarter saw the release of blockbusters like “RRR”, “KGF: Chapter 2”, “Vikram”, “Bhool Bhulaiya 2” and “Doctor Strange In The Multiverse of Madness” resulting in footfall of upto 18.4 million guests in Inox properties.

    Inox expects great turnaround in the business going forward with the content line-up in the upcoming quarter with releases like “Laal Singh Chaddha”, “Raksha Bandhan”, “Liger”, “Brahmastra” and “Vikram Vedha”.

    Inox Group director Siddharth Jain said, “During the entire stretch of the pandemic, something which kept us hold the fort, was the belief in ourselves, our passionate moviegoers, our stakeholders and our teams. From enabling us to see through the pandemic, to charting our path out of it, this belief has driven us towards this historical & miraculous performance in Q1.”

    He further added, “While our best-ever quarter marks a moment of rejoice, we will also ensure that it keeps inspiring us to raise the bar, while maintaining a strong focus on customer-centricity, innovativeness and profitability. We are committed to stay ahead of the curve, and keep delighting our stakeholders with such magical performances. We could not have asked for a bigger celebration on completion of 20 glorious years of our company’s operations.”

  • PVR-Inox merger gets approval from BSE & NSE; it will reshape multiplex business

    PVR-Inox merger gets approval from BSE & NSE; it will reshape multiplex business

    Mumbai: PVR and Inox Leisure on Tuesday disclosed that the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have given their clearance with regards to the scheme of amalgamation or merger deal between the two companies.

    The decision to merge was first proposed on 27 March before the board of directors of the two companies. The combined entity called PVR-Inox would become the largest film exhibition company in India operating 1546+ screens.

    Post the merger, the promoters of Inox will become the co-promoters in the merged entity along with existing promoters of PVR. The board of directors of the merged company will be reconstituted with a total board strength of 10 members & both the promoter families having equal representation on the board with two seats each. PVR promoters will have 10.62 percent stake while Inox promoters will have 16.66 percent stake in the combined entity

    PVR chairman Ajay Bijli will lead the combined entity as managing director. Sanjeev Kumar will be appointed as the executive director. Pavan Kumar Jain will be appointed as the non-executive chairman of the board. Siddharth Jain will be appointed as non-executive non-independent director in the combined entity.

    When the merger becomes effective, shareholders of Inox will receive shares of PVR in exchange for shares in Inox at the approved share swap ratio. Inox shareholders will receive three shares in PVR for 10 shares of INOX.

    The merger will be an all-stock amalgamation subject to approval of the shareholders of PVR and Inox respectively, stock exchanges, SEBI and such other regulatory approvals as may be required.

  • Inox and ESFI join hands to bring esports to the big screen

    Inox and ESFI join hands to bring esports to the big screen

    Mumbai: Inox Leisure and Esports Federation of India (ESFI) on Monday announced their partnership that will witness Inox providing a community viewing experience of esports tournaments on the big screen.

    As an exclusive cinema partner, Inox will host and promote ESFI tournaments across the country. “This will help in building awareness and popularising esports besides offering world-class cinemas as esports and video gaming venues in cities all over India,” said the statement.

    Inox has supported Indian sports through various collaborations, including its longstanding partnership with the Indian Olympic Association. Inox and ESFI together aim to take esports to the masses using Inox cinemas as venues for hosting esports tournaments, streaming of live tournaments, providing training opportunities, and offering a talent scouting platform for future global events.

    “We are thrilled to bring the action of esports to the cinemas of Inox in collaboration with Esports Federation of India who has been working relentlessly to grow Indian esports and together, make esports, a mainstream sporting activity in India,” said Inox Leisure’s chief executive officer Alok Tandon. “With this association, we will build more esports IPs and who knows with our initiatives we can unearth a Neeraj Chopra or Abhinav Bindra in esports for our country.”

    “The exclusive partnership comes at a very right time when Asian Games is scheduled in the month of September and ESFI will soon launch ‘AESF’s Road to Asian Games’ to select the national esports contingent of our country. This partnership will see both ESFI and Inox together nurturing and developing the Indian esports talent pool wherein ESFI will bring more partners to further strengthen this objective and create a robust and thriving esports ecosystem,” said ESFI president and Olympic Council of Asia – NOC and international relations director Vinod Tiwari.

    As per the E&Y report, India currently has more than 1,50,000 professional esports players that have generated a viewership of 17 million people across 14 broadcast platforms, and the forecast is to have 1.5 million professional players with 85 million viewership from 20+ broadcasters by FY2025.

    The association will enable Inox to engage and offer an enticing content proposition to the age bracket of 15-24 years by promoting this new age sport that has the potential to garner a huge fan base and is expected to reach Rs 11 billion by FY2025 as per industry data.

    Through this partnership, Inox and ESFI will be jointly hosting city tournaments and building various esports IPs in order to intensify its growth, not just at the elite, but also at the grassroots level. The objective will be to introduce the charm of gamers and gaming enthusiasts, across the country, to take part in online as well as in-cinema tournaments, said the statement.

  • ITC Kitchens of India to feature on Inox’s menu

    ITC Kitchens of India to feature on Inox’s menu

    Mumbai: Multiplex chain Inox Leisure Ltd on Wednesday announced its partnership with ITC Ltd’s Ready-to-Eat gourmet brand Kitchens of India to introduce a redefined, innovative F&B experience across all multiplexes of Inox in India.

    With this partnership, Inox aims to add a new experience in the cinema halls through a trusted range of 100 per cent natural, Indian gastronomical delights. The new additions to the menu will provide more options to Inox customers, whether ordering at cinemas or from the comfort of their homes through food-ordering apps, said the statement.

    Effective 29 September, customers across the country can have access to authentic Indian cuisine including Vegetable Pulao, Hyderabadi Vegetable Biryani, Dal Makhani, Rajma Masala, Pindi Chana and Steamed Basmati Rice as part of the service, it added.

    “With the addition of Kitchens of India range we are expanding the choices for our patrons by offering an aromatic and flavourful dining experience with their loved ones while watching the movie,” said Inox Leisure Ltd vice president food & beverages operations Dinesh Hariharan. “Consumers will greatly benefit from this collaboration by receiving an array of authentic local culinary delights across the country, served in premium spill and leak proof packaging.  This collaboration is a critical stepping stone in our endeavors to strengthen Inox’s F&B service brand as well as our bond with our patrons, by offering them newer preferred choices.”

    Inox’s new F&B roadmap also includes introducing new processes and innovations including making their food available on online food ordering platforms Swiggy and Zomato. Recently, Inox became the first cinema chain in India to get listed on the table reservation and food discovery platform EazyDiner. Inox sells food under three brands – Café Unwind, Insignia and Delights. Intending to extend the hospitality to new audiences, Inox plans to position these into full-service restaurant brands to target non-cinema consumers.

    “Through this partnership with Inox, Kitchens of India will aim to help redefine and shape a new horizon of cinema and food experience for movie-goers,” said ITC Ltd VP of marketing services (foods division) Shuvadip Banerjee. “As citizens gradually resume out-of-home leisure, entertainment experiences and activities, food safety and hygiene continue to be of paramount importance to consumers. With Kitchens of India featuring on Inox’s menu hereon, consumers will not only enjoy the benefits of convenient indulgences in regal Indian delicacies while enjoying their movie, but will do so with a safe, hygienic and a reliable brand.”

  • Inox Leisure’s QIP raises Rs 250 crore

    Inox Leisure’s QIP raises Rs 250 crore

    MUMBAI: Multiplex chain Inox Leisure has raised Rs 250 crore through a qualified institutional placement (QIP) of shares. Under the QIP issue, over-subscribed by 3.5 times, Inox allotted 9,803,921 shares of face value of Rs 10 each at Rs 255 per share to highly reputed and marquee global and Indian institutional investors. 

    Some of the global investors included Abu Dhabi Investment Authority and Eastspring Investments, while the Indian investors included some of the largest domestic mutual fund houses like ICICI Prudential, Birla Mutual Fund, Nippon India Mutual Fund, DSP Mutual Fund and Sundaram Mutual Fund. The issue allocation is approximately 69 per cent and 31 per cent to Indian and foreign investors respectively. 

    Inox Group director Siddharth Jain said, “The stupendous response to our QIP endorses the faith our investors have in the future of our business model and the strength of the management team. We are delighted with the participation and support of high quality investors, which will fuel the journey of Inox 2.0 in the future. I extend my deepest gratitude towards our investors for the trust they have bestowed upon us.”

    The funds raised through the QIP would be utilised by Inox to meet capital expenditure requirements for ongoing and future projects, to sustain growth in the business, for expansion and to improve the financial leveraging strength of the company. 

    The funds raised will also be invested towards working capital requirements, towards debt repayments including repayment of any existing or future debt incurred for any purpose including for paying off any liability, for investments in subsidiary companies as well as for general corporate purposes, including but not limited to pursuing new business opportunities, acquisitions, alliances etc. Overall, Inox aims to augment its business growth with the freshly accrued funds.

  • Cinemas stare at empty halls, slow recovery post Covid2019

    Cinemas stare at empty halls, slow recovery post Covid2019

    NEW DELHI: The movie industry has found itself cornered for the first time in history. Cinema halls stayed shuttered since March and it might take a while for the footfall to get back to normal. Meanwhile, business revenue has come to a grinding halt and producers are keen on releasing films on OTT platforms.

    Amitabh Bachchan and Ayushmann Khurrana's Gulabo Sitabo, Vidya Balan's Shakuntala Devi are premiering on Amazon Prime Video whereas Anurag Kashyap's movie, Choked: Paisa Bolta Hai has released on Netflix. Even regional players are releasing their content on digital platforms.

    Until now, movies usually arrive on video streaming platforms only after running in cinemas for a few weeks. As per media reports, around 10,000 single-screen and 3000 multiplexes are closed and this shutdown is estimated to cost the Indian film industry Rs 984 crore in box office revenue.

    As multiplex revenues have become null and producers are switching to video streaming platforms as an alternative option, the theatre industry is anxious about how to deal with the dire situation.

    INOX Leisure Ltd CEO Alok Tandon says, “In these times of an unparalleled crisis, we want the entire ecosystem to show solidarity. We have also urged the producers and studios to wait for the theatres to resume operations and follow the globally prevalent cinematic windowing pattern as it has done wonders in terms of revenues for all the stakeholders, and allows the creators an opportunity to extract the best from all available mediums.”

    He also shares, “The theatrical run has its own significance in the cinematic value chain as it remains the phase which generates the maximum revenues for the content creator. Besides fetching huge volumes of audiences, cinemas also contribute massively towards the experience economy."

    However, even if the government eases the restrictions on the opening of theatres, there are lower chances of high footfalls in the coming months, as many people will not take the risk of going to movie theatres.

    Tandon adds, “We are looking at the post-Covid2019 phase as another evolution with new processes and protocols and we are sure that we will take it into our stride. We are looking at the new normal soon going back to the old normal. Keeping in mind the insistence on social distancing, we will promote private screening as a consumer offering. We also look to leverage our massively successful loyalty program to innovate and curate customised offers which will
    help us to bring them back to cinemas.”

    Editor Complete Cinema and film trade analyst Atul Mohan says, “In my opinion, the first threat OTT brings is to GECs than theatres. Nothing can replace the charm of going to cinemas and OTT is dependent on hits at the cinemas. How many can afford to buy subscriptions from different players? We have so many satellite channels available at one subscription."

    Upon asking, how he sees the situation evolving in the long run, he explains, “The situation is such that many can't hold their investments. The OTT players have deep pockets and hence, can afford to acquire some titles at a premium but even they have their limitations and budgets. This is just a matter of time but in the long run, every actor and producer wants their product to be showcased in cinemas.”

    However, in this situation, OTT giants i.e. Netflix and Amazon have geared up to maintain their position and lure consumers through different genres of content. But, till when? Looking at the scenario, there’s a big question of when shooting will resume. 

    UFO Moviez JMD Kapil Agarwal shares, “India releases almost 140-150 movies in 22 languages in a month, a total of 1700 movies per year. Now, barely there are
    100 movies which are ready, perhaps. The industry has only one month worth of content. If it will be released in the starting months, there will be a crunch of content.”

    According to Agarwal, in the short run, it will hurt the exhibition industry but in the long run, there will be no impact, because films are made for big screens. 

    "Producers prefer to release their content on big screens instead of OTT platforms but people who have invested money are also under pressure and then the uncertainty of opening cinemas is also a challenge, so, they will opt for video platforms but that’s very temporary. The occupancy may go down to 30 -35 per cent and once cinemas open, it will take three to four months to get back to position,” he adds.

    Most cinema chains are expecting to recover by the last quarter of the year. Time will tell if they can resume operations by then.

  • Inox predicts suboptimal operations in future due to lower discretionary spending

    Inox predicts suboptimal operations in future due to lower discretionary spending

    MUMBAI: Multiplex chain operator Inox Leisure Ltd was amongst movie chains that were badly hit due to the pandemic. Nearly three months later there is no sign of when cinema halls will resume functioning. Inox said, in a BSE filing, that to ensure smooth functioning of operations, Inox has cut costs across all the functions and departments. 

    It has strengthened engagement with business partners, developers and distributors and producers. It requested the state and central government for support while invested more time in planning in order to utilise its resources better resumption of operations.

    The company has increased liquidity by adding additional lines of funding through short/ long term debts. The company's management believes that these certain measures ensure that the company has sufficient liquidity to fund the business operations for at least the next six months and will further add liquidity by the additional term debts from banks. For now, it has enough liquidity to continue its operations and does not expect to face any liquidity crunch.

    INOX believes that normalcy could be gradually restored during the financial year ending 31 March 2021. Gradually, over time, it will be able to resume and continue its operations for the foreseeable future.  However, it will be unable to operate at optimal capacity even in the future, considering social distancing norms imposed by the government.

    Inox highlights that it has adhered to all recommended precautions/guidelines in its operations, which includes sanitisation and hygiene, providing work from home facility to all employees, maximising audio and video-conferencing and minimising contact. It also closed employee travel and followed all government directions on the subject. However, it points out that once the lockdown ends, the company will be able to open all its offices, cinema halls adhering to the guidelines as specified by the government and will comply with all safety measures to safeguard its stakeholders from Covid2019.

    Its worry is that there could be future impact on its operations if there is a prolonged lockdown situation, inability to operate at optimal capacity due to distancing norms and customers’ change in priorities and postponing discretionary spending.

    Cinema chains tend to have added products and services that go along with its main movie offering. Inox expects there to be pent-up demand for its products and services but it could estimate the amount. For Q4 2020, it saw, loss after tax of Rs 2 crore.

    Apart from this, the company has performed a sensitivity analysis on the assumptions used and based on economic information and assessment, with its help the company expects to recover the carrying amount of these assets. The report also mentions that it will continue to closely monitor any material changes to future economic conditions.