December 7, 2022

According to a top executive on Monday, the movie theatre chain PVR Cinemas will spend up to Rs 350 crore to open 100 new screens in FY23. The mega-merger with Inox Leisure is also anticipated to be completed by February 2023, following which the combined company would begin to operate, according to PVR’s chief executive Gautam Dutta, who spoke with PTI on the phone.

He cited the business’ performance from the April to June quarter, claiming that customers are returning to the theatres to enjoy the movie-going experience and that increased food and beverage sales have given the company increased optimism about growth.

“In FY23, we want to open 100 screens at an investment of up to Rs 350 crore. The increase would be evenly distributed across geographies, Dutta said, adding that he sees the similar trend continuing in the following 2-3 years as well. According to him, roughly 60% of the additional screens will be in areas where the company currently has a presence and the remaining 40% would be in newer cities. He listed a number of places where the company plans to grow, including Rourkela, Dehradun, Vapi, Chennai, Coimbatore, Thiruvananthapuram, and Ahmedabad.

He stated that some debt as well as cash balances from internal accruals would be used to fund the initiatives, noting that the company had a manageable debt position of Rs 1,450 crore at the end of June. Prior to the pandemic, which caused movie theatres to close nationwide and put exhibitors under hardship, PVR opened up to 90 screens annually, spending about Rs 3 crore per screen, according to Dutta. However, as a result of inflation, the cost has since increased to Rs 3.5 crore per screen.

See also  TikTok Introduces Comment Dislike Button for its users

According to him, PVR had 2.5 lakh moviegoers attend cinema halls in Q1 for the movie experience, as well as record revenues and profits. In response to questions about recent investor concerns, he noted that since the stock has been rising, those concerns have subsided. In spite of the failure of movies like Rakshabandhan and Lal Singh Chadha, Brahmastra has helped investors gain confidence, according to Dutta.

The company opened its sixth property in the city, a six-screen location in Hinjewadi, Pune, on Monday. Dutta stated that the business is looking for additional locations in the Pune region, which accounts for 16% of its revenues in western India and has respectable occupancy rates.

(source : PTI)