Active Stocks
Sat Mar 02 2024 12:29:56
  1. Tata Steel share price
  2. 155.30 3.53%
  1. HDFC Bank share price
  2. 1,430.50 -0.05%
  1. State Bank Of India share price
  2. 773.40 0.53%
  1. ICICI Bank share price
  2. 1,084.60 -0.21%
  1. Axis Bank share price
  2. 1,095.00 -0.40%
Business News/ Companies / News/  PVR to invest 350 crore, open 100 new screens in FY 2023
BackBack

PVR to invest ₹350 crore, open 100 new screens in FY 2023

PVR will invest up to ₹350 crore to open 100 new screens while it also expects the mega-merger with Inox Leisure to close by February 2023

With 100 new screens, PVR will expand its presence in many new as well as existing cities including Rourkela, Dehradun, Vapi, Chennai, Coimbatore, Thiruvananthapuram and AhmedabadPremium
With 100 new screens, PVR will expand its presence in many new as well as existing cities including Rourkela, Dehradun, Vapi, Chennai, Coimbatore, Thiruvananthapuram and Ahmedabad

Film exhibition company PVR Cinemas will invest up to 350 crore to open 100 new screens in FY23, a top official said on Monday.

It also expects its mega-merger with Inox Leisure to close by February 2023, after which it will start to run as a combined business, PVR's chief executive Gautam Dutta told PTI over the phone.

Pointing to the company's performance in the April-June quarter, he said patrons are coming back to halls to enjoy the cinema experience and the food and beverage sales are also up, which makes it more optimistic about expansion.

"We will invest up to 350 crore to open 100 screens in FY23. I see the same trend continuing in the next 2-3 years as well," Dutta said, stressing that the expansion will be a balanced one across geographies.

About 60 per cent of the new screens will be in cities where the company already has a presence, while the rest will be in newer ones, he added.

Locations, where it intends to expand, include Rourkela, Dehradun, Vapi, Chennai, Coimbatore, Thiruvananthapuram and Ahmedabad, he said.

The investments will be funded by cash balances from internal accruals and also some debt, he said, pointing out that it had a manageable debt position at 1,450 crore at the end of June.

Before the pandemic set in, shuttering cinema halls across the country and leading to stress for exhibitors, PVR used to open up to 90 screens per year for which it used to invest around 3 crore per screen, Dutta said, adding that inflation has taken the cost up to 3.5 crore per screen now.

The company is not looking at any inorganic growth opportunities right now and will be focusing on getting the merger with Inox through, he noted.

When asked about the threat from Over The Top (OTT) players like Netflix or Amazon Prime, the chief executive of the country's largest film exhibition company said the debate is settled as seen in the recent performance.

In Q1, PVR had 2.5 lakh patrons visiting cinema halls for the movie experience, and record revenues and profits, he said.

Replying to queries on investor anxieties lately, he said the same has settled now with the stock gaining. Dutta explained that investors were in doubt after films like Rakshabandhan and Lal Singh Chadha flopped, but Brahmastra has helped recover.

The company on Monday inaugurated a new six-screen presence in Pune's Hinjewadi area, the sixth property in the city.

Dutta said the company is scouting for more locations in the Pune market, which delivers 16 per cent of its western India revenues and has decent occupancy rates.

The property -- opened on Monday in the Global Mall -- has a 390-seater screen with a large screen, he said, adding that the company typically invests up to 40-45 per cent extra for such.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

Catch all the Corporate news and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 26 Sep 2022, 01:44 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie