Inox PAT down 62% in FY17

Exhibition chain saw 5% increase in revenue, EBITDA and PAT for the year was down 23% and 62%

Inox Leisure, the second largest cinema exhibition chain in the country, posted a 62 per cent drop in profit after tax (PAT) for the financial year 2016-17. PAT went from Rs 81 crore in FY16 to Rs 30.6 crore in FY17. Subsequently, PAT margin was down from 7 per cent to 2.5 per cent. Ebitda for the financial year under consideration also saw a significant decrease at 23 per cent from Rs 189.1 crore in FY16 to Rs 146.1 crore (margin down from 16.3 per cent to 12 per cent).

However, the exhibition chain did see a five per cent increase in revenue, owing mainly to the robust footfalls (15.73 lakh) that Dangal (released in the last week of December 2016) attracted. Revenue went from Rs 1,160.6 crore in FY16 to Rs 1,220.7 crore in FY17. The fall in PAT can be attributed to investments made by the exhibitor in launching big ticket properties during the year, especially in the fourth quarter which led to an increase in lease and rental charges, and in employee cost.

The share of revenue from box office, F&B, advertising and other operating revenues was almost constant. While box office collections saw a five per cent increase year on year growth, F&B clocked the fastest growth at seven per cent, while advertising grew at six per cent.

Q4FY17 saw 14 per cent rise in revenue at Rs 288.5 crore compared to Rs 252.4 crore last year. Ebitda for the quarter was up 72 per cent (Rs 25.1 crore compared to Rs 14.6 crore) but PAT was down 98 per cent from Rs 17.5 crore to Rs 0.3 crore.

Siddharth Jain, Director Inox Group of Companies said, "It has been a good quarter. This year, we have launched India's first 7-star multiplex in Nariman Point, Mumbai which boasts of India's first Laserplex."

"The launch of our second 7-star multiplex at R-City, Mumbai with our first Imax screen and never-seen-before facilities, have indeed taken the experience to an incomparable level. We hope to continue with this growth pace in the forthcoming quarters," he added.