PVR Inox to shut 70 screens in FY25, lower capex, adopt multi-pronged growth strategy

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₹300-400 crore. "The key strategic priorities should help the company in charting a new, less capital-intensive and incrementally-profitable growth path. Our endeavour is to redefine our growth strategy, focus on fixed cost reduction, thus improving profitability, resulting in enhanced return on capital and free cash flow generation," Ajay Bijli, managing director, PVR Inox Ltd, said in a statement.

Overall, PVR Inox has identified four key strategic priorities to ensure medium to long-term growth. It aims to enhance profitability of the existing circuit by driving revenue through initiatives such as Movie Passport (a pre-paid weekday pass), Cinema Lovers Day (flat discounts at select properties to boost footfall), and screening events, such as film festivals, live concerts, and popular sporting leagues, besides other entertainment activities. Besides, renegotiating rentals for operational cinemas and shutting down underperforming cinemas, the company also plans to collaborate with developers to jointly invest in new screens to reduce capital outlay.

PVR Inox reported a consolidated net loss of ₹130 crore in the fourth quarter of FY24, down from ₹333 crore a yea earlier, while operating revenue rose 10% to ₹1,256 crore from ₹1,143 crore during the period. In FY24, the company’s loss narrowed to ₹32 crore from ₹335 crore in FY23, while revenue grew from ₹3,751 crore to ₹6,107 crore. According to the company, the quarter ended 31 March was the weakest of the year, leading to muted performance, with admissions at around 32.6 million.