INOX Leisure Announces Q3 'FY21 Financial Results

INOX Leisure Ltd (INOX) reported financials for the third quarter ending 31st December 2020. The results were taken on record by the Board of Directors today. The 3rd Quarter saw the partial resumption of cinema operations after a prolonged COVID induced lockdown for more than 7 months. The impact of seating restrictions to 50% and lack of fresh content showed a visible impact in the Company's performance, with Revenues reported at Rs 21 Cr, EBITDA at Rs (79) Cr* and PAT at Rs (83) Cr*.

Highlights for Qtr 3 ended on 31th December 2020

- Revenues reported at Rs 21 Cr, EBITDA at Rs (79) Cr* and PAT at Rs (83) Cr*

- Q3 'FY21 witnessed partial and restricted operations resuming after more than 2 Quarters of shutdown as various States gradually allowed operations during the Quarter

- Company raised funds to the tune of Rs 250 Cr through QIP during the Quarter, ensuring healthy liquidity to see through the difficult phase.

- I&B Ministry's revised SOPs allowing 100% seating in cinemas w.e.f 1st Feb, subject to State Government orders, will prove to be a landmark moment in the sector's revival

- Company resumes new screen addition on a rigorous note- opens 4 new cinemas with 15 screens in the month of January, at Gurugram (2), Salem and Thane

- Stringent cost control procedures continue to remain implemented

- Timely and productive engagement with key stakeholders-Authorities, Landlords, Production Houses - already started proving useful

- With a massive lineup of great quality content in Bollywood, Hollywood and other Indian languages, company christens FY 22 as the Year Of Cinema Entertainment

- Q3 and Q4 have already witnessed major hits like Master, Tenet, Wonder Woman 1984, Solo Brathuke So Better, Krack & Red

In Q3, the Company executed a successful completion of fund raising of Rs. 250 Cr through a Qualified Institutional Placement (QIP). The QIP opened for subscription on 9th November and closed on 12th November, and was over-subscribed by ~3.5 times. INOX allotted 9,803,921 shares of face value of Rs 10.00 each to eligible Qualified Institutional Buyers (QIBs) at Rs 255 per share.

With the Ministry of Home Affairs allowing enhancement of seating capacity and the subsequent guidelines issued by Information & Broadcasting Ministry permitting 100% seating w.e.f 1st Feb, the Company expects studios and producers to promptly announce the release dates of the movies, triggering a rapid turnaround. The Company has already witnessed early signs of resurgence with South Indian movies Master, Solo Brathuke So Better, Krack & Red and Hollywood movies like Tenet & Wonder Woman 1984 attracting large audiences in good numbers, not just in the Southern regions, but across the country.

With an assured and an extremely rich pipeline with movies in all genres and languages, the Company has pinned hopes on the FY22, calling it the Year Of Cinema Entertainment. With 50+ titles in Hindi and other Indian languages each expected to hit the screens in 2021, complimented with an extremely rich and exciting Hollywood release pipeline, the industry is poised to see major blockbusters at regular intervals throughout the year.

The Company has also resumed its new screen addition on a rigorous note with opening of 4 new cinemas with 15 screens in Gurugram (2), Salem and Thane. The Company hopes to add another 14 screens before the end of FY21 or during Q1 FY22.

With an objective to keep the costs under a check, the Company has implemented active cost control measures and brought down major expenses including Employee Costs, Power & Fuel Costs and Rentals & CAM Charges. Company has continued to engage with key stakeholders including Landlords - for waiver of rentals and implementation of revenue sharing model for the current Financial Year and with Film Producers - to ensure the availability of ample fresh content for exhibition.

The Company has ensured that the revised SOPs prescribed by the Ministry of Information & Broadcasting are implemented in stringent manner. Company has also initiated number technology initiatives to ensure that physical contacts are reduced while experiences become seamless.

Siddharth Jain, Executive Director - INOX Group says, "The Indian cinema industry is known for its tremendous creative might and the passion & emotion which has been fuelling its growth for over a century now. We are absolutely confident that these factors will now take the center stage and help us make a comeback, which would be swift, smooth and profitable. Thanks to the positive decisions made by the Govt of India on seating capacity, the Indian cinema industry is all set to witness its hay days once again. Content, which has always been a vital element in our business, will come to the forefront and play its part, making 2021 the Year of Cinema Entertainment. At this crucial juncture, as we resume our resurgence, with great content and newer cinemas, I take the opportunity to thank all the stakeholders, including Government authorities, real estate partners, movie producers and supply chain partners, for standing with us through this difficult phase. I also thank our teams working tirelessly across the country, only to ensure that our guests continue to have a safe cinema experience."

Shares of INOX LEISURE LTD. was last trading in BSE at Rs.335.9 as compared to the previous close of Rs. 330.85. The total number of shares traded during the day was 195282 in over 4602 trades.

The stock hit an intraday high of Rs. 339.85 and intraday low of 324.7. The net turnover during the day was Rs. 65245986.

Source : Equity Bulls

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