Inox Leisure share price fell over 7% in trade today after the multiplex operator reported net loss of Rs 82.15 crore for quarter ended March. The firm said Q4 it incurred loss due to the film exhibition business which was impacted because of COVID-19 pandemic and subsequent lockdown.
In March quarter of 2018-19, the firm reported net profit of Rs 48.08 crore. Inox Leisure share price fell up to 7.67% to Rs 261.3 against previous close of Rs 283 on BSE. At 1:12 pm, the share lost 6.31% to Rs 265.15. The stock opened with a loss of 5.65% at Rs 267 today. The share trades higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages
Inox Leisure share has lost 30.47% since the beginning of this year and fallen 24% during last one year. However, in one month, the share has gained 30%.
Revenue from operations fell 22.39 percent to Rs 371.58 crore during Q4 against Rs 478.84 crore in the corresponding quarter a year ago. "The COVID-19 pandemic and the resultant lockdown declared by the government in March 2020 has impacted the entire entertainment industry and consequently the business activities of the Group are also adversely affected," the company said.
"The advent of COVID-19 has left a serious mark on our fourth quarter performance and will remain a cause of concern in the subsequent months as well," said Inox Group Director Siddharth Jain.
On future impact of the pandemic on business, Inox said , "While the company strongly believes that the normalcy in business operations will gradually be restored during the financial year ending March 31, 2021, the impact on future revenue streams could come from:
- Prolonged lock-down situation resulting in company's inability to start multiplexes
- Inability of the company to operate at optimal capacity on account of government imposed social distancing norms for multiplexes in future
- Retail customers being more prone to immediate impact on account of pandemic postponing their discretionary spend due to change in priorities