Inox Leisure at life time

about 3 months ago
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Inox Leisure hit a life time today morning at Rs.355.20 and it continues to remain very strongly in the green, around Rs.347 levels.

With the uncertainty of elections out of the way, the punters and investors are back to the investing board, looking out for midcap bets. And post the Q4FY19 earnings of Inox, this company currently seems to be on the radar.

The company posted a 48% (YoY) jump in revenue at Rs.479 crore though net profit fell 16% to Rs.48 crore.

Operating profit more than doubled, rose 131% to Rs.97 crore and the margins were up from 12.9% to 20.2%.

What has probably got the attentions is its various ‘highest’ records. In FY19, the company had the highest-ever new screen openings for the industry in a year at 17 properties with 85 screens. It also had the highest ad revenue growth in the industry for the eighth consecutive quarter. Inox is the first national chain in the industry to be totally net debt free and it had the industry's highest EBITDA to capital invested ratio at 22%. It had the highest-ever yearly footfalls of 6.25 crore, highest yearly ATP of Rs.197 and highest yearly SPH of Rs.74.

Looking ahead, the conference call transcripts published yesterday, the company said in the first two months of current fiscal, it has opened the Lucknow Gardens Galleria Mall with 4 screens and 803 seats and in Vadodara, the Taksh Galaxy, which has got 5 screens and 976 seats. Thus its current tally stands at 19 states, present in 67 cities with 141 properties, 583 screens and 137,365 seats, which are operational. It expects to open 16 properties and 71 more screens in this year.

The management has said, “We have a very strong visibility of pipeline beyond FY 2020 based on agreements already signed. We have properties tied up to the extent of about 830 screens, 120 properties and 150000 seats approximately. And once this pipeline is fully implemented, we will be about 277 properties, 1480-plus screens and about 3 lakhs seats strong. So that it is as far as the properties pipeline is concerned. As far as content is concerned, we expect some pretty good releases to happen over the next few months. In June, we have major releases like Bharat, which is a Salman Khan starrer. In July, we have Spider-Man, which will be released on 5th July. In August, there is Mission Mangal starring Akshay Kumar expected to be released on 15th August. And so what I see is that we have quite a strong content pipeline and the year looks to be quite exciting.”

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