Inox Leisure reports net loss of Rs122.28cr in Q1FY21

The ongoing restrictions imposed by the Central and State Governments to contain the spread of second wave of COVID-19 has affected cinema operations severely, with the company’s operations halted for a large part of Q1’FY22.

Aug 03, 2021 05:08 IST India Infoline News Service

Inox Leisure
Inox Leisure reported a consolidated net loss of Rs122.28cr in the quarter ended June 2021 as against net loss of Rs73.64cr during the previous quarter ended June 2020.

The sales of the company were up at Rs22.31cr in the quarter ended June 2021 as against Rs0.25cr during the previous quarter ended June 2020.

Its EBITDA stood at Rs(104)cr in Q1FY21. The ongoing restrictions imposed by the Central and State Governments to contain the spread of the second wave of COVID-19 has affected cinema operations severely, with the company’s operations halted for a large part of Q1’FY22.

The stock ended at Rs315.75 down by Rs7 or 2.17% from its previous closing of Rs322.75 on the BSE. The scrip opened at Rs321 and has touched a high and low of Rs326.25 and Rs311 respectively.

Mr. Siddharth Jain, Director – INOX Group says, “As we were coming to terms with the new normal after the 1st wave, we were once again troubled by the 2nd wave which coincided with Q1 ‘FY22. Having already shown huge resilience in the past 4 Quarters, we have drawn inspiration from the faith of all our stakeholders, who have stood by us, as well as the captivating content lineup, which is in store for the immediate future. With 100% of our team vaccinated, operations resuming across the country, strong liquidity position and the great content pipeline, the industry will see us at our buoyant best and our guests will enjoy our renewed rigor and warmth that we are known for.”

The Company managed to successfully raise Rs 300 Cr through Qualified Institutional Placement with issuance of 96,77,419 equity shares at Rs. 310 per equity share (including premium) in the month of June 2021. The QIP received an overwhelming response, showing the huge amount of faith it commands among the investors.

With an aim to resume operations in a safe and hygienic manner, and with an objective to ensure employee safety, the Company has carried out vaccination of all the employees across the country. Under this initiative, 100% employees have been administered with the 1st dose of vaccine. Company is optimistic about the robust lineup of movies to release once normalcy returns. With cinemas allowed to operate in 13 States and 1 Union Territory, 113 INOX multiplexes with 459 screens will be resuming operations in the coming days in a staggered manner as per operational readiness and government guidelines in the near future.

Company has been actively engaging with key stakeholders including the Government Authorities, Mall Developers & Content Producers to garner critical support and ensure a smooth and prompt return to normalcy. With an objective to keep the costs under a check, the Company will continue to implement active cost control measures and bring down major expenses including Employee Costs, Power & Fuel Costs and Rentals & CAM Charges.

With 1 new property, with 5 screens and 694 seats, inaugurated in SBR Horizon Mall, Bengaluru, in April 2021, the Company now operates 153 multiplexes with 648 screens in 69 cities across the country.

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