Loss-Making Cinemas Over

Next 6 Months

PVR INOX Ltd, a multiplex operator formed by the merger of India's top two companies, has announced a quarterly loss of 3.33 billion rupees ($40.72 million). The loss was primarily due to one-time impairment charges and expenses associated with the planned closure of certain cinemas. As a result, the company incurred an accelerated depreciation charge of 105.8 million rupees for 50 cinemas that are expected to shut down within the next six months. The cinema industry in India has faced significant challenges since the onset of the pandemic, as lockdown measures forced people to stay home and increased the popularity of streaming services among movie enthusiasts. In response to these difficulties, PVR and Inox joined forces. Despite the challenging circumstances, PVR INOX has outlined its plans to open 150-175 additional screens during fiscal year 2024. However, the company also incurred an impairment charge of 108.2 million rupees related to a suspended project in a Bengaluru mall. This announcement marks the first financial report following the completion of the merger between PVR and INOX.