PVR INOX Faces Widening Losses Amid Election-Induced Film Delays

PVR INOX Ltd reported a Rs 179 crore net loss in the June quarter, widening from Rs 82 crore last year. The decline was attributed to film release postponements due to general elections. Revenues fell to Rs 1,190.7 crore, while expenses rose. The company anticipates better performance ahead.

PVR INOX Ltd has reported an increased consolidated net loss of Rs 179 crore for the June quarter, citing the deferral of film releases because of general elections. This represents a substantial rise from the Rs 82 crore net loss recorded in the same quarter of the previous fiscal year, according to a regulatory filing.

The company's consolidated revenue from operations stood at Rs 1,190.7 crore, down from Rs 1,304.9 crore in the year-ago period. Meanwhile, total expenses climbed to Rs 1,457.5 crore from Rs 1,437.7 crore in the corresponding period last year.

"The quarter began on a soft note, with April and May affected due to the general elections, which were the second longest in India's history at 44 days," PVR INOX stated in its earnings report. This led to a 13 per cent decrease in the number of film releases, compared to the same period last year. Only three films crossed the Rs 100 crore mark, down from seven in the previous year. Looking ahead, PVR INOX Managing Director Ajay Bijli said that the company expects improved performance in the remaining quarters, as Hollywood recovers from recent labor strikes.

(With inputs from agencies.)