Inox records 58% increase in net profit

MUMBAI: Inox Leisure Ltd has announced its results for the second quarter of the financial year 2006 -2007. For the quarter ended 30 September 2006, the company reported a 42 per cent year-on-year (YOY) growth in revenues for Q2 2006-07 at Rs 399.6 million (Rs 39.96 crores) versus Rs 282.4 million (Rs 28.24 crores) in the same quarter of the previous year.

For the half year, the growth was at 58 per cent from Rs 508.1 million (Rs 50.81 crores) to Rs 804.9 million (Rs 80.49 crores).

The profit after tax for the quarter ended 30 September 2006 amounted to Rs 69.6 million (Rs 6.96 crores), as compared to Rs 56.4 million (Rs 5.64 crores) in the corresponding quarter of the previous year, which is an increase of 23 per cent. For the half year, profit after tax grew from Rs 97.2 million (Rs 9.72 crores) to Rs 153.3 million (Rs 15.33 crores), a growth of 58 per cent.

This quarter also saw Inox launch its Nagpur property taking its tally up to 44 screens in 12 multiplexes across 11 cities. Inox has another 21 properties in different stages of implementation, which it expects to operationalize by March 2009. This will help Inox take its total count to 33 properties across 21 cities, 130 screens and 37,000 seats by March 2009.

In September, Inox also entered into a definitive agreement for an all share swap deal with Calcutta Cinema Private Limited (CCPL) for acquiring CCPL and its brand of multiplexes – ‘89 Cinemas’ and merging the latter’s operations with Inox Leisure Limited. CCPL operates two properties as at present and has another seven properties under different stages of implementation.

Inox Leisure Ltd. director Deepak Asher said, “We have been able to maintain our industry leadership position in revenues and profitability, due to better footfalls and pricing at our existing multiplexes as well as the addition of new properties to our portfolio. We expect to maintain the momentum of growth going forward, with another seven properties expected to open by March 2007, in cities like Chennai, Mumbai, Bharuch, Vijaywada, Lucknow, Faridabad and Jaipur. We have also been helped with a good spate of releases, and expect this trend of a continuous flow of big budget and good quality content to continue.”

INOX has also entered into an alliance with the Pantaloon Group, which provides it with preferential access to all real estate developments that the Pantaloon Group is associated with, either for its own growth plans, or through real estate funds being managed by the Pantaloon Group. The properties acquired through this alliance will be in addition to the properties that Inox has locked in on its own, thus exponentially increasing its reach across India.

Financial Highlights

  • 58% YOY growth in revenues for H1 2006-07 at Rs 80.49 crores versus Rs 50.81 crores in H1 of the previous year.
  • 42% YOY growth in revenues for Q2 2006-07 at Rs. 39.96 crores versus Rs. 28.24 crores in the same quarter of the previous year.
  • 58% YOY growth in PAT for H1 2006-07 at Rs 15.33 crores versus Rs 9.72 crores in H1 of the previous year.
  • 23% YOY growth in PAT for Q2 2006-07 at Rs 6.96 crores versus Rs. 5.64 crores in the same quarter of the previous year.

Operational highlights

  • Properties under operation up from seven in Q2 2005 to 12 in Q2 2006.
  • Screens under operation up from 30 in Q2 2005to 44 in Q2 2006.
  • Footfalls up 45% from 1695053 in Q2 2005 to 2460441.

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