Inox Leisure reports Q3 net loss of Rs 1.32 crore

Multiplex chain operator Inox Leisure Ltd on Friday reported narrowing of its consolidated net loss at Rs 1.32 crore for the third quarter ended December 2021 as the film exhibition business witnessed recovery from Covid restrictions during the period.

The company had posted a net loss of Rs 102.50 crore in the October-December quarter a year ago, said Inox Leisure in a BSE filing.

Its revenue from operations was up at Rs 296.47 crore, up to several folds during the quarter under review as against Rs 14.88 crore in the corresponding quarter last fiscal, when the screening business was almost closed last fiscal.

The company reduces gap with pre-COVID levels on key business metrics, said Inox Leisure in a post earning statement.

Inox Leisure, which operates 667 screens in 70 cities, has reported the highest ever quarterly average ticket price at Rs 226 along with a highest ever quarterly spends per head at Rs 97.

“With major business metrics showing a significant reduction in gap with pre-COVID levels, the third Quarter signalled a sharp recovery, largely due to great content and reduced apprehensions due to widespread vaccination,” said Inox Leisure.

Moreover, during the quarter, it has added three new properties with 13 screens at – Guwahati, Dhanbad and Gurugram.

Inox Leisure’s total expenses were at Rs 302.96 crore, up 91.41 per cent in Q3/FY 2021-22, as against Rs 158.28 crore.

The October-December quarter saw the Inox Leisure receiving a promising response, reminiscent to pre-COVID times for movies including Sooryavanshi, Spider-man: No Way Home, Annaatthe and Pushpa.

“The Rise and 83, with 2 movies garnering box-office collections in excess of Rs 200 crore and three movies in excess of Rs 100 crore,” it said.

INOX Group Director Siddharth Jain said: “Besides being resilient, we maintained an optimistic outlook during the adverse phase over the past eight Quarters. Thanks to our strong fundamentals, the spectacular content flow and above all, the infinite passion for cinema prevailing in our country, we have proudly witnessed the recovery happening.”

In the calendar year 2021, Inox Leisure had added 41 new screens, which was the highest in the industry, it added.

“The company had plans to add a total of 41 screens in FY’22, out of which, 24 have been launched, while project work of 17 screens are 80 per cent completed,” it said.

However, over the current COVID-19 pandemic situation, Inox said various state governments have now imposed fresh restrictions which continue to “adversely impact” the cinema exhibition industry and consequently the business activities of the Group.

“The group has continued to take effective steps for reducing its operational costs in all areas. In developing the assumptions relating to possible future uncertainties, the group has considered all relevant internal and external information available up to the date of approval of these financial results and the Group has used the principles of prudence in applying judgement, estimates and assumptions,” it said.

Shares of Inox Leisure Ltd on Friday settled at Rs 379.45 apiece on the BSE, down 1.33 per cent, from the previous close.