Film business hit, Inox Leisure reports net loss of Rs 82 cr in Q4 FY20

Multiplex chain operator Inox Leisure Ltd on Monday reported a consolidated net loss of Rs 82.15 crore for the fourth quarter ended March 2020, as the film exhibition business was impacted because of Covid-19 pandemic and subsequent lockdown, accroding to a report by the Press Trust of India.

The company had posted a net profit of Rs 48.08 crore in January-March quarter a year ago, Inox Leisure said in a BSE filing.

Revenue from operations declined 22.39 per cent to Rs 371.58 crore during the quarter under review as against Rs 478.84 crore in the corresponding quarter a year ago.

"The Covid-19 pandemic and the resultant lockdown declared by the government in March 2020 has impacted the entire entertainment industry and consequently the business activities of the Group are also adversely affected," Inox Leisure said in a post-earnings statement.

Commenting on the results, Inox Group Director Siddharth Jain said, "The advent of Covid-19 has left a serious mark on our fourth quarter performance and will remain a cause of concern in the subsequent months as well."

Inox Leisure's total expenses fell 3.39 per cent to Rs 396.98 crore during the fourth quarter as against Rs 410.93 crore a year ago.

For fiscal year 2019-20,the company's net profit declined 88.75 per cent to Rs 15.01 crore. It stood at Rs 133.49 crore in 2018-19.

Its revenue from operations in 2019-20 rose 12.12 per cent to Rs 1,897.44 crore. It was at Rs 1,692.18 crore in 2018-19.

During the entire financial year, Inox added 58 screens, depicting its focus on getting closer to the customers, it added.

The company, which operates 626 screens in 147 multiplexes across 68 cities, said it has assessed the impact of Covid-19 pandemic on its business operations, the carrying amount of its assets and revenue recognition.

"The Group has already initiated effective steps to reduce its operational costs, including invoking the force majeure clause under various lease agreements due to Covid-19 for its multiplex premises, contending that rent and CAM (Common Area Maintenance) charges for the shutdown period are not payable," it said.

Shares of Inox Leisure on Monday closed 1.89 per cent lower at Rs 283 per share on the BSE.