Inox Leisure to Add 926 Additional Screens to its Network: CEO Alok Tandon

Multiplex chain operator Inox Leisure has announced that it has so far signed agreements with various developers to add 926 additional screens to its network and these are expected to come in the next few years.

During a conference call with the investors, Inox Leisure Chief Executive Officer Alok Tandon maintained that India is an 'under-screen' nation and the company is growing and is 'bullish' about this industry.

Inox is also planning to spend around Rs 65 crore as a capital expenditure (CAPEX) and will take a fit-out of another 25 screens.

“Based on the agreement already signed, I feel proud to share that beyond the financial year 2021-22, we have properties signed up to the extent of nearly 133 more properties, 926 more screens with an addition of another 1,71,675 seats. And, once this entire pipeline is fully implemented, we will have 296 properties, 1,618 screens, and nearly 3,27,000 seats,” added Alok Tandon.

On the rental front, Alok Tandon said that the multiplex operator is currently paying the rentals to the tune of 18-20 percent of the total revenues and it will take time for the parties on the rental system for the new properties.

Currently, Inox is operational in 69 cities of 18 states and one Union territory with 648 screens. “We are a very under-screen nation, and today, what we are doing at INOX is we are trying to expand our footprint because we all know that we have only 8-8.5 screens per million population; and if I talk about multiplexes, it is about 2.45-3 screens per million population. So, we at INOX are growing, we are very bullish about this industry, we have got a very robust pipeline,” he asserted.

Inox restarted operations from July 30 in some regions after a forced closure by the second wave of the Covid-19 and has permission to open 459 screens and has opened 201 screens so far, as of August 3.

Like all multiplexes, the firm had an impact on revenues during the first quarter of 2021-22 due to the second wave of COVID-19. “While we tried to keep its fixed costs under control, year-on-year comparison of Q1 FY2022 with Q1 FY2021 would be skewed as Q1 FY2021 was a complete shutdown. However, Inox's liquidity position is very strong. As of July 31, 2021, we have liquidity of about Rs 400 crore, which includes undrawn limits of Rs 120 crore,” he informed.

Alternatively, INOX raises around Rs 350 crore by doing the sale on a leaseback of its six cinema properties and a head office. As of July 31, 2021, Inox Leisure’s gross debt stood at Rs 117 crore.