PVR INOX Q1 results: Net loss widens to Rs 179 cr on delay in film releases

Cinema exhibitor PVR INOX Ltd on Friday reported a widening of consolidated net loss to Rs 179 crore in the June quarter impacted by postponement of film releases due to general elections.

The company had posted a consolidated net loss of Rs 82 crore in the first quarter last fiscal, PVR INOX said in a regulatory filing.

Consolidated revenue from operations were at Rs 1,190.7 crore in the first quarter, down from Rs 1,304.9 crore in the year-ago period, it added.

Total expenses were higher at Rs 1,457.5 crore as compared to Rs 1,437.7 crore in the corresponding period in the last fiscal.

"The quarter began on a soft note, with April and May getting impacted due to the general elections, which were the second longest in India's history at 44 days," the company said in its earnings statement.

This prompted many producers to postpone film releases, resulting in a 13 per cent drop in the number of releases in the quarter as compared to the first quarter of last year. The number of blockbusters also declined sharply this quarter, with only three films crossing the (Rs) 100 crore mark compared to seven last year, it added.

On the outlook, PVR INOX Managing Director Ajay Bijli said, "There are no significant events expected in the near future to disrupt the release schedule. Additionally, Hollywood is expected to bounce back, as the effects of the writer and actor strikes are beginning to diminish.

"We anticipate a significantly improved performance in the remaining three quarters of the current fiscal year.'', the company said.