PVR INOX To Shut Down 70 Screens in FY25, Looking To Monetise its Real Estate Assets: Report

PVR INOX, the leading multiplex operator, is set to close around 70 non-performing screens in FY25 and will go for potential monetisation of non-core real estate assets in locations such as Mumbai, Pune, and Vadodara. This is as per a report by YourStory.

According to the company's annual report filing, to achieve profitable growth, the company will add 120 screens in FY25 despite closing 60-70 non-performing screens.

It is reported that 40% of new screens will come from south India as it is part of the company's medium and long-term strategy to get into lesser penetrated regions. It is also looking to transition towards a capital-light growth model to reduce its capex on new screen additions by 25% to 30% in the current fiscal, as per the reports.

It is also evaluating monetisation of owned real estate assets, as the leading film exhibitor aims to become a "net-debt free" company in the foreseeable future.

PVR will now partner with developers to jointly invest in new screen capex by shifting towards a franchise-owned and company-operated (FOCO) model. It is focussing on speeding up its expansion to expand its underrepresented markets.

It evaluates the monetisation of owned real estate assets, as the leading film exhibitor aims to be a "net-debt free" company in the foreseeable future.

"This involves a potential monetisation of our non-core real estate assets in prime locations such as Mumbai, Pune, and Vadodara," said Managing Director Ajay Kumar Bijli and Executive Director Sanjeev Kumar addressing the shareholders of the company, reported Yourstory.

During the current year, PVR INOX opened 130 new screens across 25 cinemas and also shut down 85 underperforming across 24 cinemas in line with its strategy of profitable growth.

PVR INOX's net debt in FY24 was at Rs 1,294 crore. The company had reduced its net debt by Rs 136.4 crore last fiscal, said CFO Gaurav Sharma, reported Yourstory.