PVR Inox to shut down over 50 screens in the next six months

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PVR-Inox, the multiplex chain operator, reported a net loss of Rs 333 crore for the quarter ended March, contrasting with a profit of Rs 16.1 crore in the preceding December quarter and a loss of Rs 105 crore in the year-ago quarter.

During the fourth quarter, revenue from operations more than doubled, reaching Rs 1,143 crore, compared to Rs 536 crore in the same quarter of the previous year.

Also Read: PVR Inox Q4 net loss more than triples to Rs 333.37 crore

The company has announced its intention to close around 50 cinema screens within the next six months. These screens either operate at a loss or are situated in malls that have reached the end of their life cycle, with little possibility of rejuvenation.

In response, the company has accounted for an accelerated depreciation charge and written off the Written Down Value (WDV) of these assets in its financial records.

During the last fiscal year, both PVR and INOX jointly introduced 168 new screens across 30 cinemas. Looking ahead to FY'24, the companies have set a target to open an additional 150–175 screens. Currently, most of these screens are in various stages of fit-out.

As part of its strategy, the company has decided to reschedule the handover of new sites for fit-outs to the next calendar year.

This adjustment is being made in response to the need for a robust recovery in the box office before proceeding with further expansions.

Currently, PVR's screen portfolio, which includes 38 management screens, consists of 1,689 screens across 361 cinemas located in 115 cities in India and Sri Lanka.

The merger between PVR and Inox was successfully concluded in the quarter ending March. Ajay Bijli, the Managing Director of PVR Inox, expressed his views on the merger, stating that it will serve as a significant milestone for both the company and the Indian film industry as a whole.