PVR-INOX Future Plans: Indian multiplex chain PVR Inox Limited, also known as PVR Cinemas. It has taken a big decision in the new financial year. Under this decision, PVR is going to close 70 screens. Before you think that the company is downsizing its business, let us tell you that the company has actually taken this decision to increase the company’s revenue.
PVR has not only decided to close 70 multiplexes, but has also planned to open 120 new multiplexes. Under this planning, the company seems eager to increase its reach in South India.
Why did this decision have to be taken?
According to Mint, in fact the company has presented the figures for the fourth quarter of its financial year 2023-24, in which the company has suffered a total loss of Rs 130 crore. After this, the company has decided to follow a new strategy. Under this, a decision has been taken to close only those theaters whose performance was very poor.
In fact, after the arrival of the first wave of Corona and due to the lockdown, people had stopped going to theatres. In such a situation, OTT platforms also emerged as a strong source of entertainment for the people. PVR also suffered losses due to this. But to overcome this, PVR has now made a brilliant plan.
What is the master plan of the company?
In the data presented by the company related to the fourth quarter of the financial year 2023-24, it has been told that the company has suffered a loss of Rs 130 crore. In such a situation, while the company had closed 85 theaters in the financial year 2023-24, now the company is going to close 70 more theaters in the financial year 2024-25. The company recently told this in its announcement under the company’s financial planning.
In the statement issued by the company, it has also been told that the company is also planning to open 120 new theaters in South India. That is, an attempt to make inroads in South India which can benefit the company.
Why did the company do this
The company says that it wants to maximize its returns by optimizing its resources. That is, this is a strategy to increase income by using the company’s resources properly. The company wants to do this under the capital light model. Capital light model is a model under which a company reduces the amount of capital invested. Apart from this, the company has also decided that compared to the last financial year, the company’s expenses will also be reduced by 25 percent.
The company suffered losses, but there is still a ray of hope
The company said that the company suffered a consolidated loss of Rs 130 crore in the fourth quarter of the financial year 2023-24, which was less as compared to the financial year 2022-23, because then the loss was Rs 333 crore. There has also been improvement in operating revenue, which has increased from Rs 1143 crore to Rs 1256 crore.
The loss of the company has also reduced from Rs 335 crore to only Rs 32 crore in 2024 as compared to the financial year 2023. Whereas the revenue growth has increased from Rs 3751 crore to Rs 6107 crore. According to the company, the last quarter ending March 31, 2024 was the weakest quarter of the last financial year.
What was the reason for the weak last quarter?
Enumerating the reasons for the weak last quarter of 2023-24, the company said that films like Maidan and Bade Miyan Chhote Miyan were not able to make good collections and the ongoing Lok Sabha Elections There is also a reason for this.