Inox Leisure Limited announced its Q3FY16 result on Thursday: failed to meet market expectations

Inox Leisure Limited (INOX) is second largest multiplex operator with presence across India. INOX, along with Satyam Cineplexes Limited, is now present in 57 cities with 105 multiplexes, 413 screens and a total seating capacity of 107,576 seats across India. During the quarter INOX has added 20 screens at 4 properties with a total seat capacity of about 4,824 seats at the end of December 2015.

INOX posted a 13.6% YoY increase in net revenues during the quarter due to addition in screens. The Gross Box Office Collection (GBOC) was up by 14% at Rs.230.69 crore. The top 5 movies aggregated a GBOC of Rs. 109.9 crore (INR 133.8 crore in 2QFY16) or 48% of the GBOC during the quarter and footfalls of 5.6 mn (43% of aggregate footfalls during the quarter). Revenues from food & beverage and advertising saw an increase of 18% YoY at Rs.65.51 crore. Growth in other operating revenues was relatively softer at 11% YoY at Rs.16.02 crore. The quarterly occupancy rate was flat at 28% compared to last year and footfalls saw increase of 11%YoY. Even on comparable properties basis footfalls was up only by 4% YoY. The Average Ticket Price (ATP) was up by 2% YoY at Rs.179 and on a comparable property basis up by 3% YoY at Rs.180. The EBITDA stands at Rs.52.83 crore; whereas EBITDA margins almost remained flat at 15.5% on gross revenue & 17.8% on net revenue during the quarter (15.4% & 17.6% in 3QFY15) despite the increase in entertainment tax (+16.5% YoY); Net profit has increased by 9% YoY at Rs.15.6 crore;  and PAT margin was lower as compared to last year i.e. 4.6% in Q3FY16 vs 4.8% Q3FY15.

On 9M FY16, INOX posted 30.9% YoY increase in net revenue. GBOC was up by 33% at Rs. 713.94 crores. Revenues from food & beverage and advertising saw an increase of 36% YoY at Rs.208.64 crore; and other operating revenues increased by 13% YoY at Rs.51.58 crore. The occupancy rate was slightly up 31% vs 27% last year in 9MFY16 vs 9MFY15; and footfalls saw an increase of 29%YoY. Even on comparable properties basis footfalls was up by 15% YoY. The ATP was up by 3% YoY at Rs.171 and on a comparable property basis up by 3% YoY at Rs.169. The EBITDA stands at Rs.174.86 crore whereas EBITDA margins saw good jump to 16.7% on gross revenue; & 19.3% on net revenue during the quarter (14% & 16% in 9MFY15) despite the increase in entertainment tax (40% YoY); Net profit has increased by 154.6% YoY at Rs.61.37 crore; and PAT margin was up as compared to last year i.e. 5.9% in 9MFY16 vs 3% 9MFY15.

The share price of INOX declined by 2.1 per cent on bourses in early trades; and is trading at Rs.207.2 on an intraday basis.