CRISIL Ratings has upgraded INOX Leisure Limited's (INOX) bank facilities to 'CRISIL AA-/CRISIL A1+' from 'CRISIL A+/CRISIL A1'. The long-term rating remains on 'Rating Watch with Positive Implications,' but the short-term rating is removed from â€˜Rating Watch with Positive Implicationsâ€™.
The rating action reflects the company's good operational performance during Q1FY23 and the company's view of ongoing robust operating performance in 2HFY23 (after a minor hiccup witnessed over the last two months due to poorer content and social media protests over some material).
The excellent operating performance should be supported by a strong content pipeline and the holiday season.
This, together with screen additions and continued higher average ticket prices (ATP), spending per person (SPH) on food and drinks, and advertising income recovery could help revenue and operating profitability exceed pre-pandemic levels in fiscal 2023, said CRISIL in its rating rationale.
At around 3.16 PM, Inox Leisure was trading at Rs489.20 down by 1.28% from its previous closing of Rs495.55 on the BSE. The scrip touched day's high and low of Rs504.60 and Rs485 respectively.
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