PVR Inox Ltd is making big changes to use its resources better and make more money. After closing 85 poorly performing screens in FY24, the multiplex chain plans to shut down 70 more screens in FY25. This was announced in their earnings report on Tuesday.
At the same time, PVR Inox is planning to expand by opening 120 new screens in FY25, especially focusing on the promising south Indian market.
The company is also aiming to cut down on spending by 25% in FY25 compared to the previous year. They plan to do this by negotiating better rental deals, making their operations more efficient, and cutting costs.
A major goal for PVR Inox is to become debt-free. They are considering selling their real estate assets, which are worth ₹300-400 crore, to help achieve this.
“Our main goals are to grow in a way that requires less capital and increases profits. We want to reduce fixed costs, improve profitability, and generate more free cash flow,” said Ajay Bijli, managing director of PVR Inox Ltd, in a statement.
PVR Inox has identified four main strategies for medium to long-term growth. These include increasing the profitability of existing screens by boosting revenue with initiatives like the Movie Passport (a prepaid weekday pass), Cinema Lovers Day (flat discounts at select locations to attract more viewers), and hosting special events like film festivals, live concerts, and popular sports events.
In addition to renegotiating rent for operating cinemas and closing down underperforming ones, the company also plans to work with developers to jointly invest in new screens to reduce their own spending.
PVR Inox reported a consolidated net loss of ₹130 crore in the fourth quarter of FY24, down from ₹333 crore a year earlier. However, operating revenue rose 10% to ₹1,256 crore from ₹1,143 crore during the same period.
For the whole of FY24, the company’s loss narrowed to ₹32 crore from ₹335 crore in FY23, while revenue grew from ₹3,751 crore to ₹6,107 crore.
The company said the quarter ending March 31 was the weakest of the year, leading to a subdued performance with around 32.6 million admissions. Some films, like Bade Miyan Chote Miyan and Maidaan, did not perform as well as expected. Additionally, the ongoing general elections affected new movie releases. However, they expect the situation to improve by mid-June.
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