INOX has 8 movies lined up for release — and it has enough cash to go 6 months without revenue
- INOX believes it has sufficient liquidity to fund the business operations throughout 2020.
- The theatre chain has at least 8 movies lined up for the release this year including Sooryavanshi starring Akshay Kumar and Katrina Kaif.
- INOX posted a loss ₹82 crore in the quarter four of the current fiscal year after coronavirus pandemic forced cinema halls to shut down temporarily for as many as 60 days, leading to zero footfalls.
The theatre chain has at least 8 movies lined up for the release this year.
Expected movie releases this year
INOX posted a loss of ₹82 crore in the quarter four of the current fiscal year after the coronavirus pandemic forced cinema halls to shut down temporarily for as many as 60 days, leading to zero footfalls.
|Expected release month
|John David Washington, Robert Pattinson, Elizabeth Debicki, Dimple Kapadia
|Akshay Kumar, Katrina Kaif
|Salman Khan, Disha Patani
|Scarlett Johanson and Robert Downey Jr.
|No Time To Die
|Bhuj — The Pride of India
|Deepika Padukone and Ranveer Singh
While cinema halls may open, experts are skeptical whether they will be profitable in the near future. INOX is optimistic about growth.
“Can operate without revenue for the next six months”
Moreover, INOX believes it has sufficient liquidity to fund the business operations throughout 2020.
“Our average monthly cash burn during lockdown is ₹15cr to ₹16cr. Based on this average we are comfortably placed for the next 6 months to operate without any revenue. We can liquidate treasury shares ( of ₹125 cr as on 5th Jun’20) at a short notice to infuse additional funds, INOX said.
Moreover, the company is exploring a range of other measures to keep up with funds ranging from rights issue, and public issue. It can also raise ₹350 crore through “sale-lease-back’ of 6 cinema properties and its head office.
In its latest regulatory filing, INOX said it has cut costs across all functions and departments. It has also increased liquidity by additional lines of funding through short/long term debts.
AdvertisementApart from this, INOX says it has planned out strict measures to ensure social distancing. Some of which involves avoiding use of physical/printed tickets, crossing out the seats in cinema halls, PPE kits for staff among others.
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