50 screens of PVR Inox will be closed, new company was recently formed after merger, know why this happened.
New Delhi: There is no good news for cinema lovers. Multiplex chain operator PVR-Inox has announced the closure of around 50 cinema screens in the next six months. These cinemas are causing losses to the company or are located in malls that have completed their life cycle. These theaters are not expected to revive. The company said this while announcing its quarterly results. PVR-Inox has incurred a huge loss of Rs 333 crore in the March quarter. The company had earlier posted a profit of Rs 16.1 crore in the December quarter and a loss of Rs 105 crore in the year-ago March quarter. In the fourth quarter of the last financial year, the company’s revenue from operations doubled to Rs 1,143 crore. In the same quarter in the financial year 2022, the company’s revenue from operations was Rs 536 crore.
In March last year, the boards of PVR Ltd and Inox Leisure Ltd had approved the scheme of merger. This deal was done in stocks. This merger created the largest multiplex chain in the country. It had more than 1,500 screens across the country. But this industry was badly affected due to the pandemic. After the merger, the revenue of both the companies came down to below Rs 1,000 crore. After the merger, the name of the company became PVR Inox Limited. The quarter started on a strong note for the company. Avatar: Way of Water in December and Shah Rukh Khan’s Pathan in January did good business. But the Hindi films that came in February and March could not do anything amazing at the box office.
Recently completed merger
During the last financial year, PVR and INOX had commissioned 168 new screens across 30 theatres. In the financial year 2024, the company has set a target of opening 150 to 175 additional screens. The company currently has 1689 screens in its screen portfolio. It is included in 115 cities in India and Sri Lanka. These include 38 management screens. The process of merger of PVR and Inox was completed in the March quarter.
