Multiplex industry, in simple terms, constitutes companies line PVR nd Inox that are running the chain of cinema halls. Before Covid-19 hit the world, these multiplexes were buzzing with crowds of cinema lovers and profits. But the shares of PVR and Inox were in losses for the last 7 quarters. It was for the first time in 2020-21 that both these companies were in losses. But now these companies are moving towards profit.
Here are nine points that will give you a detailed insight into the industry.
1. The losses incurred by PVR were Rs 74 crore and the losses suffered by INOX were Rs 82 crore, in the fourth quarter of the financial year 2020. At the same time, in the fourth quarter of the financial year 2021, PVR’s losses reached Rs 289 crore and INOX’s reached Rs 94 crores. The total loss of PVR had reached Rs 1194 crore and the total loss of INOX had reached Rs 632 crore, from the fourth quarter of the financial year 2020 to the second quarter of the financial year 2022, t.
2. Covid-19 had put a long pause on film-watching experiences in theatres. OTT took over the space and movies with big star casts like Bhuj and Bigbul were being released on OTT. In the midst of all this, the future of OTT vs theatres was discussed extensively. The debate gained momentum when the Marvel Cinematic Universe’s big-budget film Black Widow was released on Disney Hotstar.
3. Stock market experts predicted that whenever the theatres open, the shares of PVR, INOX will rise again. The market data suggests that although the shares of both the stocks fell, people still kept investing money in them.
Returns on shares
Duration PVR INOX
1 week 4% 5%
1 month 6% 8%
6 months 56% 63%
1 year 46% 67%
4. Market experts believed that going to the cinema hall and enjoying the cinema on the big screen is a different experience. OTT of course gives a more customised and intimate viewing but fails to give a big-screen experience. Most of the experts believed that as soon as the theaters open, the crowd will come to watch the cinema. And the same happened.
5. Ajay Bijli, chairman of PVR Cinemas, had repeatedly said in the media that as soon as the situation becomes normal, people will go back to multiplexes to watch movies on the big screen.
6. Suryavanshi was ready for almost a year. But due to Covid-19, it could not be released. The director of the film Rohit Shetty had also made up his mind to release the film only on the big screen. Keeping the Covid-19 protocol in place, the government finally decided to open cinema halls and Suryavanshi has managed to earn as expected.
8. Akshay Kumar, Ajay Devgan, and Ranveer Singh’s multistarrer film Suryavanshi has made a strong opening at the box office. On the very first weekend, the film collected Rs 80 crore. The business of Punjabi and South Indian films has gone beyond the pre-Covid stage, while Bollywood too seems to be gaining momentum.
8. Apart from Suryavanshi, Marvel’s Eternals has been released which seems to be earning a lot. Not only this, many big films are going to be released in the coming 6 months, from which the multiplex industry has a lot of expectations. Whether it is the second part of ‘Bunty Aur Babli’ or the film ’83’ on cricket. It is believed that these films will do well.
9. Some experts believe that Corona has given a long advantage to the multiplex industry. Single screen theaters are almost closed now and in such a situation the multiplex industry can get the benefit.
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