Covid-19 takes major chunk in Inox Leisure's Q1 result; Board approves fundraising up to Rs250cr

During Q1FY21, Inox Leisure registered a consolidated net loss of Rs73.64cr against a net profit of Rs27.01cr in the corresponding period of the previous year.

Aug 06, 2020 10:08 IST India Infoline News Service

INOX Leisure
While announcing the June 2020 (Q1FY21) quarter, Inox Leisure's board members also approved fundraising of up to Rs250cr through an issue of securities either by way of a public issue or by way of rights issue or by way of a private placement. In Q1FY21, the company's bottom-line and the top-line front were adversely impacted due to Covid-19 lockdown which brought operations to a standstill.

During Q1FY21, the multiplex chain operator registered a consolidated net loss of Rs73.64cr against a net profit of Rs27.01cr in the corresponding period of the previous year. Meanwhile, revenue from operations dropped by a whopping 99.94% to mere Rs0.25cr in the quarter under review, compared to Rs493.01cr a year ago same period.

Inox Leisure in a statement said, "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."

Siddharth Jain, Director – INOX Group said, “This phase has posed a tough challenge to our aspirations, but we are confident of not only seeing through it but also script an extraordinary comeback tale. We have pinned out hopes on our strong fundamentals of Luxury, Service and Technology, and on the unshakeable passion and fondness for movies prevalent among the Indian masses. In the given scenario, we are doing all what it takes to lend more strength and sustainability to the Company, so that we soon place ourselves back in our familiar growth orbit. Completely prepared and raring to go, we are earnestly looking forward to the directives from the Government of India to resume operations and get back to doing what we are best at – entertaining India.”

In its filing to exchange, Inox Leisure said, the board of directors approved raising funds up to Rs250cr through an issue of securities either by way of a public issue or by way of rights issue or by way of a private placement (including but not limited through a qualified institutional placement) in accordance with the provisions of the applicable law.

"The fundraising is subject to necessary permissions, sanctions and approvals (including Shareholders' approval and such other statutory approvals as may be required) and the provisions of the law. The Company is seeking approval of Shareholders for the aforesaid resolution at the ensuing Annual General Meeting," Inox Leisure added.

On Thursday, Inox Leisure stock was performing at Rs237.70 per piece up by 1.43% on Sensex at around 10.12 am. 

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