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Incorporated in 1999, INOX Leisure Limited (INOX) is one of the largest multiplex operators in India.
Its state-of-the-art theatres, which feature high-definition video and audio, exceptional customer service, and distinctive design and ambiance, allows the company to set new standards for cinema viewing.
INOX Leisure Limited, as a flagship venture of the INOX Group, has always worked to improve the experiences, from creating a world class infrastructure that is high on comfort and aesthetics, to staying up to date with the latest in the cinema technology space.
INOX’s 7-star cinema viewing experience INSIGNIA tailor-made experiences to its patrons led to the creation of home-grown formats like the vibrant and lively KIDDLES for the young audience, the smart luxury experience CLUB for the discerning guests and BIGPIX a premium giant screen cinema format.
ILL currently operates 151 properties (641 screens and 144,678 seats) located in 68 cities across India, being the only multiplex operator having such a diverse presence across PAN India.
The company accounts for 19% share of the multiplex screens in India and approx 11% share of domestic box office collections. As of today’s date, this is INOX Leisure share price.
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Operational Highlights – INOX Leisure Limited
- Revenue for Q3FY21 came in at Rs 21 cr vs Rs 518 cr YoY. EBITDA came at Rs 79 cr negative vs Rs 108 cr positive. Loss was at Rs 83 cr vs profits of Rs 51 cr due to staggered opening of halls.
- Box office Revenue declined 98%, Food & Beverage fell 97%, Advertisement fell 99% and others declined 72%
- Occupancy fell from 27% to 3% YoY, Average Ticket price fell from Rs 204 to Rs 153, Spend per headdeclined from Rs 81 to Rs 73.
- 9MFY21 Revenue came in at Rs 29 cr vs Rs 1,538 cr YoY, EBITDA was negative at Rs 144 cr vs Rs 308 cr positive, Loss came in at Rs 183 cr va profits of Rs 144 cr due to Pandemic. On 31st Jan 2021 cinemas were allowed to open with 100% capacity.
- Occupancy fell from 29% to 3% YoY, Average Ticket price fell from Rs 199 to Rs 153, Spend per head declined from Rs 80 to Rs 73.
- Food and beverages contributed 66.6% to Revenue vs 75.2% YoY. Film Distributors share remained unchanged at 44%. The Company has recognised rent concessions aggregating to ₹ 54cr and ₹ 196cr for the quarter/nine months ended 31st December 2020 respectively.
- Company added 15 new screens and successfully completed QIP of Rs 250 cr for paying off debt and towards operating expenses which was oversubscribed 3.5 times.
- Company has negotiated revenue sharing/discounted rent and CAM post opening upto 31st Mar 2021. Closed negotiations with 0 rental with most and CAM charges are negotiated at negligible levels for lockdown period. Monthly cash burn is Rs 25-Rs 30 crs. Film Distribution share went down considerably.
Future Outlook of INOX Leisure Limited:
Source : Company Disclosures
Company plans to add 4 new properties and open 14 more screens with 2231 seating capacity with Rs 8 cr- Rs 10 cr of additional capex. Post FY21 it plans to add 143 more properties and open 990 new screens with 1,84,195 seats.
Further, 12 screens are at an advanced stage of completion, however these may open in Q4FY21/ Q1FY22. South has 141 screens with 22% mkt share, North has 157 screens with 24% mkt share, West has 256 screens with 40% mkt share, East has 87 screens with 14% mkt share.
Well Diversified Presence Across India
Source : Company Disclosures
INOX Leisure Limited has 26 Bollywood, 23 Hollywood and 19 regional movies in their pipeline. Company has a cash balance of Rs 230 crs. Company’s gross debt is Rs 115 crs. It’s Net Debt free.
Company is hopeful that the H2 FY2022 occupancy level will come back to normal. Promotion and Advertising costs may increase whereas some costs may always be lower post pandemic.
Company is confident that both cinema hall and OTT platforms will coexist and thus does not see any disruption due to OTT. 95% people engage in loyalty programmes when visiting multiplexes. Block bookings and private screenings are rising in pandemic like Birthday parties, Anniversary celebrations, small parties etc which are there to stay.
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StockEdge Technical View :
INOX Leisure Limited is consolidating above the weekly support zone and likely to stay positive in the medium term till it stays above the 295-305 zone. Probable resistance in the medium term comes at 350-355 zone. Further momentum to be seen only above swing high of 359 level. Technical parameters look neutral as of now.
BottomLine:
Financials and disruptions due to OTT should be seen for 2 more quarters before taking any Investment call for the company as there are too many fixed costs which will come back post 100% occupancy. Thus till FY22 no major improvement in Financials is expected.
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