Multiplex chain operator Inox Leisure posts Q2 net loss of Rs 68 crore

Multiplex chain operator Inox Leisure on Thursday reported a consolidated net loss of Rs 67.83 crore for September quarter as its film exhibition business was closed due to the pandemic-induced lockdown.

The company had posted a net profit of Rs 35.13 crore in July-September a year ago, Inox Leisure said in a BSE filing.

Revenue from operations was down 99.93 per cent to Rs 36 lakh during the quarter under review as against Rs 519.94 crore in the corresponding quarter last fiscal.

Total income was at Rs 4.66 crore, down 99.11 per cent as against Rs 524.34 crore in the year-ago period.

With lockdown imposed by the central & state governments to contain the spread of COVID-19 since the month of March '20, the company witnessed yet another quarter with not a single day of operations. As a result, the company reported revenues at Rs 5 crore, EBITDA at Rs 30 crore and PAT at Rs 48 crore, said Inox Leisure in a post earning statement.

Inox Leisure's total expenses were at Rs 95.29 crore, down 79.76 per cent as against Rs 470.91 crore.

To keep the costs under check, Inox Leisure has implemented active cost control measures and brought down major expenses including employee costs, power & fuel costs and rentals & CAM (Common Area Maintenance) charges.

Company has continued to engage with key stakeholders including landlords - for waiver of rentals and implementation of revenue sharing model for the current financial year and with film producers - to ensure the availability of ample fresh content for the exhibition, it said.

The board and shareholders of Inox have approved fundraising through equity shares/other securities up to Rs 250 crore, it added.

Under Unlock 5.0 guidelines, the government has permitted cinemas to reopen from October 15 onwards with 50 per cent capacity.

Inox has been permitted to open cinemas in Delhi, Uttar Pradesh, Haryana, Punjab, Gujarat, Madhya Pradesh, West Bengal, Andhra Pradesh, Karnataka, Assam, Goa, Maharashtra and Tamil Nadu, it said.

The company is yet to receive notification from state governments of Odisha, Jharkhand, Chhattisgarh, Kerala, Telangana and Rajasthan, to resume operations, it added.

Inox Group Director Siddharth Jain said the toughest times are behind.

Once we see off the initial headwinds, I am certain that the pent-up desire to wholeheartedly delight our guests will unlock a whole new world of entertaining experiences. Toughened and seasoned, INOX 2.0 is all set to tread on its new journey, with remarkable innovations, delightful enchantments and a whole lot of tech-driven initiatives, he said.

Inox Leisure is amongst India's largest multiplex chains with 147 multiplexes and 626 screens in 68 cities.

Shares of Inox Leisure on Thursday settled at Rs 275.75 apiece on BSE, up 4.31 per cent from the previous close.