PVR-INOX Aims for Profitable Growth, Closes Non-Performing Screens

Leading multiplex operator PVR-INOX is streamlining its operations to enhance profitability. The company plans to close 70 underperforming screens in the current fiscal year, FY25. Additionally, it will explore monetisation opportunities for non-core real estate assets in prime locations like Mumbai, Pune, and Vadodara.

To maintain growth, PVR-INOX will add 120 new screens in FY25, with a particular focus on expanding its presence in South India. This region offers significant potential due to its growing demand for films and relatively lower multiplex penetration.

The company is also shifting towards a capital-light growth model to reduce its investment in new screens by 25-30%. PVR-INOX will partner with developers to jointly invest in cinema projects through a franchise-owned and company-operated (FOCO) model.

To further improve its financial position, PVR-INOX is evaluating the monetisation of its owned real estate assets. The company aims to become net-debt-free in the near future.

“Our medium to long-term strategy involves expanding our screen count in South India,” said MD Ajay Kumar Bijli and Executive Director Sanjeev Kumar. “We estimate that approximately 40% of our total screen additions will come from this region.”

In the previous fiscal year, PVR-INOX opened 130 new screens while closing 85 underperforming ones. The company’s net debt in FY24 was ₹1,294 crore, a reduction of ₹136.4 crore from the previous year.

“Despite cutting capital expenditure, we are not compromising on growth,” said CFO Gaurav Sharma. “We will open almost 110-120 screens in FY25 while exiting 60-70 non-performing screens.”

In FY24, PVR-INOX reported a loss of ₹114.3 crore on revenue of ₹6,203.7 crore. The company achieved 80-90% of its targeted synergies from the merger of PVR and INOX.

The multiplex operator saw its consolidated net loss widen to ₹179 crore in the June quarter of FY25 due to postponed film releases during the general elections.

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