PVR and INOX Set to Expand Cinema Presence with 160-170 New Screens by the End of Fiscal Year 2024

Leading multiplex player PVR INOX is poised to enhance its cinema presence by opening 160-170 screens by the conclusion of the current fiscal year. During the third quarter, the company successfully added 29 new screens, contributing to a total of 97 new screens in the first nine months of the fiscal period.

Nitin Sood, Chief Financial Officer of PVR INOX, disclosed, “We have several large projects in the pipeline, including a nine-screen project in Ahmedabad, 14 screens each in Bengaluru and Pune, and nine screens in Kochi. Alongside these, we have other smaller projects, ensuring that we stay on track to open 160-170 screens in FY24.”

In a strategic move towards profitable expansion, the company exited 62 underperforming screens during the initial nine months of the fiscal year. An investor presentation outlines the plan to exit a total of 77 screens by the end of FY24.

The third-quarter financial report revealed a consolidated net profit of ₹12.8 crore, marking a 20 per cent decrease from ₹16.1 crore during the corresponding period the previous year. However, consolidated revenue from operations witnessed a significant increase, reaching ₹1,546 crore, up by 64.46 per cent. Presently, PVR INOX operates 1,712 screens across 360 cinemas in 113 cities in India and Sri Lanka.

Sood acknowledged the muted performance in the first half of the quarter due to the Cricket World Cup but highlighted December as the highest-grossing month, driven by the strong performance of films released during that period, such as Animal, Salaar, and Dunki.

Despite the industry's lower footfalls compared to pre-pandemic levels, Sood noted, “Volatility has definitely increased. For us too, footfalls in the third quarter were lower by 2 per cent compared to the third quarter in the last fiscal.”

Remaining optimistic about future prospects, the company emphasized a compelling content line-up across all languages and reported that the integration process has been progressing well, resulting in significant operational savings.

HBL