PVR INOX, one of India’s leading multiplex chains, has announced plans to shut down 70 underperforming screens in FY25. This move is part of the company’s strategy to optimize its operations and drive profitable growth, according to its latest annual report.
The report highlights the company’s commitment to profitability, stating, “…not wavering from our goal of profitable growth, we will exit almost 60–70 screens that are non-performing and a drag on our profitability.”
In addition to closing screens, PVR INOX is planning to monetize non-core real estate assets located in Mumbai, Pune, and Vadodara. This decision is in line with the company’s broader goal to become “net-debt free” in the future.
The annual report outlines that PVR INOX will add 120 new screens in FY25, focusing significantly on expanding in South India. The company notes, “Our company’s medium to long-term strategy will involve expanding the number of screens in South India due to the region’s high demand for films and comparatively low number of multiplexes in comparison to other regions. We estimate that approximately 40% of our total screen additions will come from South India.”
PVR INOX is also shifting towards a capital-light growth model, aiming to reduce its capital expenditure on new screens by 25 to 30 percent in the current fiscal year.
This rationalization effort follows the company’s recent activities, including the opening of 130 new screens and the shutdown of 85 underperforming screens in the past year. The report clarifies, “This rationalisation is part of our ongoing efforts to optimise our portfolio. The number of closures seems high because we are doing it for the first time as a combined entity.”
The company’s net debt stood at ₹1,294 crore in FY24, reduced by ₹136.4 crore from the previous fiscal year. Despite the reduction in debt, PVR INOX reported a revenue of ₹6,203.7 crore and a loss of ₹114.3 crore for FY24, which was the first full year of operations following the merger of PVR and INOX.
In terms of financial performance, the report notes a 10 percent growth in ticket prices and an 11 percent increase in food and beverage spend per head. Moving forward, PVR INOX plans to align these increases with long-term historical growth rates and restore pre-pandemic margins, as occupancies remain below pre-pandemic levels.
To enhance revenue, the company is focusing on boosting footfalls through innovative customer acquisition and retention strategies. The report further details, “We are rigorously working on driving greater cost efficiencies. This involves renegotiating rental contracts to reduce fixed costs, closing underperforming screens, a leaner organisational structure, and overhead cost control measures.”