Inox Reported The Record Revenue Of INR 5156 Mn In Q3FY23

Led by better performance in Hindi content and more driven by the large-scale English film – Avatar 2


The Indian multiplex operator Inox Leisure reported record revenue of INR 5,156 mn, up by 73.9 per cent YoY and 37.8 per cent on a QoQ basis. 

The firm said that the revenue was flat compared with pre-Covid levels of Q3FY20, led by better performance in Hindi content and more driven by the large-scale English film – Avatar 2. 

ATP was INR 230 and up by 7 per cent QoQ (up 13 per cent versus Q3FY20 – pre-Covid level) and SPH was INR 106 and up 4 per cent QoQ (up 31 per cent versus Q3FY20 – pre-Covid level), they added. 

While the overall footfalls stood at 15.3 mn and up by 32 per cent QoQ, it is 9 per cent lower in comparison to Q3FY20 of pre-Covid level due to the resumption in content supply with normalcy.

Furthermore, the Q3 reported an occupancy of 23 per cent and up by 600bps QoQ. Q3 EBITDA was INR 1,701mn (with Ind-AS impact) and up by 107 per cent YoY and 100 per cent QoQ (largely flat versus Q3FY20, pre-Covid level), with a margin at 33 per cent. 

As well as the Hindi box office (BO) revenue is slated to recover to 80 per cent of pre-COVID in Q4E to INR 7bn (net BO), given the lack of big content in January, except for Pathaan; Shehzaada, Selfiee and Tu Jhoothi Main Makkaar - these are some large star-led films for Q4FY23. 

A spokesperson said, “We believe strong BO performance in at least two holds the key for Hindi content to show visible signs of a comeback. One of these Hindi films - Pathan has already collected INR 2.4bn (net domestic) until yesterday in terms of BO and is expected to have a lifetime collection towards INR 4bn (net domestic), which will provide much-needed respite for Hindi content.”

On the merger with PVR they said, “In terms of key metrics such as ad revenue per screen/convenience fee per screen, INOL is still trading at a discount of 43 per cent  and 65 per cent respectively versus PVR. We believe the merger with PVR may reduce the gap in the near term and may have a big positive impact on the merged entity’s profitability. We do not expect any material change in ATP and SPH post-merger as these metrics are more location-led.”

“The merger will also lead to operating efficiency, paring employee cost, which will positively impact the EBITDA margin of the merged entity (to 20-22% ex-IndAS). A healthy performance in Hindi content augurs well for BO as well as ad spending, as a large portion of the latter is helped by Hindi footfalls,” they added. 

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