Below is the Quote on 1QFY21 results of Inox Leisure Ltd. By Keshav Lahoti, Associate Equity Analyst, Angel Broking Ltd.
“Q1FY21 was a nightmare for the multiplex industry. For the quarter excluding Ind AS 116 impact, Company reported ₹3 cr revenue, ₹35 cr EBIDTA loss implying cash burn of ₹12 cr per month and ₹52 cr net loss. In Q1 FY20 Company reported revenue, EBIDTA and PAT (excluding Ind AS 116 impact) of ₹496 cr, ₹92 cr and ₹41 cr respectively. For the quarter, Company has not booked any amount for rent and CAM charges as it has evoked force majeure clause. Rent and CAM charges which is yet to be confirmed in writing for the quarter was ₹86 cr. Although management was confident no liability for it will arise in future. In 41 screens at least 75% of work is already completed in each screen and is expected to be opened in this financial year for which ₹28-30 cr more capex needs to be incurred. Company will restart the capex cycle once they reach normalcy. Multiplex industry missed the bus to start their operation in unlock 3.0 also. Even if they are allowed to be opened by the Ministry of Home Affairs then we believe all states will not allow to open theatres at one go in their respective states. Initially for a few months industry will have to function at lower occupancy as people will avoid visiting theatres due to fear of Covid-19. However from a long term perspective, we remain positive on the Multiplex Industry and Inox Leisure considering that stock has corrected more than 50% due to covid-19 and we don't see any major change in the long term fundamentals of the Company.”
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