Multiplex Chain PVR Inox Adds 77 Screens and Removes 67 Underperformers

Multiplex chain PVR Inox's net screen addition was 10 as it added 77 new screens and exited 67 underperforming screens for the nine-month period ending December 2024, during which time it shifted to a capital light model, lowering its capex deployment.

In March 2025, capex is expected to be ₹400 crore, a 35% decrease from the previous year. The majority of the cinema chain's future screen expansion will follow the capital light model. PVR Inox's screen portfolio currently includes 1,728 screens spread across 350 cinemas in 111 cities in India and Sri Lanka.

"We have already opened 77 screen this year and will be opening another 30 in this quarter (Q4) and every year our run rate will remain between 100 to 110 screens," the CEO said. Ajay Bijli explained that the closed screens had reached the end of their life cycle, and the multiplex had opened new screens that already served the catchment area.

Bijli went on to say that the screens being turned off have either reached the end of their life cycle or are being replaced by a new PVR Inox property serving the same catchment area.

Under the capital light strategy, the company has signed 100 screens across 22 cinemas so far, including 31 screens across eight cinemas under management contracts and 69 screens spread across 14 cinemas using the asset light model. These screens are expected to appear over the next two to three years. The developer deploys the entire capex under the management contract, whereas the developer bears 40-80% of the capex under the asset light model.

PVR Inox's Q3 net profit grew 2.5 times year on year to ₹35 crore, while operational revenue increased 7% to ₹1,595 crore due to Pushpa 2's strong box office performance.

Total admissions increased by 2.1% to 37.3 million, while average ticket spend (ATP) and spend per head (SPH) increased by 3.9% (₹281) and 6.5% (₹140), respectively.