Inox Leisure records loss of Rs 74 cr in Q1

The multiplex operator reported a consolidated net loss of 73.64 crore in Q1 June 2020 compared with net profit of Rs 27.01 crore in Q1 June 2019.

Total income fell 99.4% to Rs 2.97 crore in the June quarter from Rs 496.13 crore in the corresponding period last year.

Amongst the steps taken to reduce operational costs, the group has invoked the force majeure clause under various lease agreements for its multiplex premises, contending that rent and CAM (Common Area Maintenance) charges for the shutdown period on account of COVID-19 pandemic are not payable.

Accordingly, the Group has recognised Rs 69.27 crore towards reduction of such rentals and has also not recognised expense of Rs 20.91 crore towards CAM charges for the period ended 30 June 2020. In accordance with principles of fair presentation, the reduction in rentals has been disclosed as a separate line item in the financial results.

The amount of reduction in rent and CAM charges which is yet to be confirmed in writing for the quarter ended 30 June 2020 is Rs 86.02 crore (cumulative amount upto 30 June 2020 is Rs 98.45 crore).

Pre-tax loss in Q1 FY21 stood at Rs 97.92 crore as against a pre-tax profit of Rs 41.54 crore in Q1 FY20. The company has written back differed tax provisions to the tune of Rs 24.28 crore during the quarter.

"The ongoing lockdown imposed by the Central and State Governments to contain the spread of COVID-19 since the month of March 2020 has led to unprecedented circumstances, with the company's operations halted for the entire first quarter.

The board has approved raising upto Rs 250 crore through issue of securities either by way of a public issue or by way of rights issue or by way of a private placement (including but not limited through a qualified institutional placement) subject to shareholders approval.

INOX Leisure is a multiplex operator with a chain of 147 multiplexes and 626 screens in 68 cities.

The scrip rose 1.60% to Rs 238.10 on the BSE. It traded in the range of 231 and 239.50 so far during the day.

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