Inox Leisure Q1FY22 Quarterly Result

The Total revenue for the quarter ended June 2021 of Rs. 22.31Cr  grew by 8824.00%  which is not meaningful as operations were shut during last year due to covid restrictions This growth in revenue is  from Rs. 0.25 Cr and decreased by 75.33% from 90.44 Cr last quarter.

 The Net Loss for the quarter ended June 2021 is Rs. -122.28 Cr  as compared to Net Loss of Rs. -73.64 Cr  of corresponding quarter ended June 2020.and for last Quarter it was Rs-93.69 Cr

Operating profit Margin for the quarter ended June 2021 slipped to -257.90% as compared to 361.00% of corresponding quarter ended June 2020

Con call Highlights:

Company tried to keep fixed cost under control

Employee benefit expense gone down Power fuel expense decreased

Expense rent and Cam renegotiated for  65% of properties and plan is further negotiate it for waiver or concession .Concessions gain were observed

Reduced overhead to from 20.54 Cr  to  10.70 Cr Q1FY22

13 states and 1 Union territory (113 locations and 159 screens ) were Inox is present allowed to open cinemas have capacity of 60% in most of the states while 5 states have not allowed yet which includes 40 locations and 189 screens

Opened 5 screens and upcoming opening s are 44 screens with 8156 seats  in FY21 and Beyond FY22 133 more properties with 926+ screens 171675 Seats  will be opened . And after this is done  for  296 properties  1618 screen 327000  seats is scheduled to launch

Most of revenue generated from southern part of the country.

Stakeholders are content partners they favour to release movies in big screens

8-10 Cr Capex is required depending on normalisation process post that 25 screens will require an additional 65 Cr Rs

Liquidity position is strong with 400 Cr as on  July 31st

Inox can raise up to 350 Crores from lease and sale of its properties

Gross Debt is 117 crores  However its net debt free

Content in Pipeline

19  Hollywood movies

26 Bollywood movies in pipeline

30 Regional movies in pipeline

Screens Zone Wise

South -146 screens which is 22% 

East -89 screens which is 14%

North -157 screens which is 24%

West – 256 screens which is 40%

Q & A Sessions:

Inox is trying to  give incentive like free popcorn etc to grab customers attention .Marketing is working on it

Loyalty programmes incentives and other benefits will be provided  to customers   

Its very important for good content to have good window period between OTT and theatre release to maximise revenue of producers and other stakeholders 

Tax relief :Gujarat raised minimum demand for property tax and may get some tax relief from state government

Industry outlook:Indian cinema expansion has good growth as Indian market has about  8-8.5 screens for  million population  and in regards to multiplex its about 2.75-3 screens for million population. Inox has robust pipeline and growth in future

Barriers to entry : Availability and proper development  of real estate is strong barrier and also regulation. Barriers on other side would be infrastructure like  to have successful mall it has to have multiplex which complement each other.

Due to strong liquidity position Inox can survive in this full financial year .