PVR INOX has also taken this step in order to write off depreciation from its books
In its quarter earnings report, leading multiplex operator PVR INOX has announced its plans to shut down some cinemas across India. Despite its plans to increase the number of screens in FY24, PVR INOX has plans to shut down some due to various reasons.
In its official report, PVR INOX said that these cinemas will be shut down in next six months as they have become loss-making entities. It reads, “The company plans to shut down approximately 50 cinema screens over the next 6 months. These properties are loss making, or housed in malls which have reached the end of their life cycle with little hope of any revival.”
PVR INOX has also taken this step in order to write off depreciation from its books. The statement adds, “The company has taken an accelerated charge of the depreciation in its books and written off the WDV of assets.”
As far as the total screen count by PVR INOX goes, in the previous fiscal year, the entity launched 168 new screens in 30 cinemas. In FY24, it plans to open 150-175 more screens. “As on date our screen portfolio (including 38 management screens) stands at 1,689 screens across 361 cinemas in 115 cities in India and Sri Lanka,” PVR INOX said in a statement.
The merger of PVR INOX has proved to a milestone for the multiplex industry. As per the press statement, Ajay Bijli, Managing Director, PVR INOX said, “The recently culminated merger with INOX will act as a key milestone for the company and the Indian film industry as a whole. The integration process is proceeding smoothly and we are confident of achieving operational synergies of INR 225 crs over the next 12-24 months.”