Inox Leisure's Q2 consolidated net loss widens to Rs 88 crore

Multiplex chain operator Inox Leisure on Friday reported widening of consolidated net loss at Rs 87.66 crore for September quarter 2021-22 as its film exhibition business was impacted due to restrictions imposed after the second wave of COVID-19.

The company posted a net loss of Rs 67.83 crore for July-September period a year ago, Inox Leisure said in a BSE filing.

Revenue from operations zoomed to Rs 47.44 crore from Rs 36 lakh in the year-ago period, when the screening business was completely closed.

Total expenses in the period under review were Rs 170.22 crore as against Rs 95.29 crore.

According to the company, which operates 658 screens across 156 multiplexes in 70 cities, it has started opening cinemas in a staggered manner from July 2021 after getting permission from various state governments to operate as per the prescribed Standard Operating Procedures.

All states with INOX's presence have allowed cinemas to operate as per Unlock directives, said Inox Leisure in a post earning statement.

Inox Leisure added two new properties with six screens in the quarter under review.

Commenting on the results, Inox Group Director Siddharth Jain said:Our performance in this quarter signifies the beginning of the revival journey, which has come after numerous quarters of uncertainty.

In the quarter, Inox received an encouraging response for movies including Bell Bottom, F9 The Fast Saga, Mortal Kombat, Shangchi the Legend Of Ten Rings and No Time to Die which proves that patrons are willing to turn up for good quality content.

With 18 lakh guests visiting INOX cinemas across the country, the early signs of revival were evident in the quarter with a 10 per cent occupancy rate, ATP (Average Ticket Price) of Rs 178 and spend per head (SPH) of Rs 92, which is identical to the pre-COVID times, said Inox.

Over the outlook, Inox said it expects stability & positive sentiment in the business going forward, led by fascinating content lineup in the next festive quarter with as many as 20 plus blockbusters releasing in Hindi, English and other Indian languages.

We are certain that with a great content pipeline in upcoming quarters, reduced apprehensions, positive consumer sentiment, a 100 per cent vaccinated team, a strong liquidity position and unlocking of Maharashtra, not only INOX, but the entire film exhibition industry will resurge with a fascinating performance, said Jain.

Shares of Inox Leisure on Friday were trading at Rs 418.30 apiece on BSE, down 0.32 per cent, from the previous close.