We believe in the unmatched allure of the big screen and the shared
experience of watching movies in a theatre.
Dear Stakeholders,
I am pleased to present to you the Annual Report for FY 2023-24.
Cineline has remained committed to delivering unparalleled cinematic experiences under our
distinguished brand, Movie MAX. This past year has been characterised by a renewed wave of
optimism and heightened operational excellence, propelling us to quickly achieve one of
the film exhibition industry's most impressive EBITDA margins.
We believe in the unmatched allure of the big screen and the shared
experience of watching movies in a theatre. Our focus lies in curating an immersive
environment that celebrates storytelling and creates unforgettable memories for our
patrons. This past year, new hit movies boosted our performance. Though theatre occupancy
has not reached prepandemic levels, our revenue increased due to higher ticket pricing and
our new Food & Beverage (F&B) offerings.
Recognising the growing demand for regional movies, we have diversified
our content. The industry has rebooted with increased interest in diverse films,
presenting us with new opportunities to cater to a broader audience. Our expansion into
the food & beverage industry, with cloud and physical kitchens within our cinema
complexes, aims to enhance the culinary experience for our patrons.
Looking ahead, we remain optimistic about the future of the movie
exhibition industry and our ability to adapt to changing market dynamics. Our goal is to
provide movie enthusiasts with an exceptional viewing experience that blends comfort and
innovative technology.
Macro Economy View
The Indian economy is witnessing remarkable growth at a trajectory of
8.2%, driven by strong capital expenditure, robust domestic demand, and a revival in
global demand. Amid this landscape, the Indian media and entertainment industry is
uniquely positioned to capitalise on the vast and diverse consumer base eager for content
and technological advancements.
The film industry has experienced a resurgence, growing by 14% to reach
Rs. 197 Billion in 2023. This growth was driven by the release of 1,796 films, leading to
an all-time high in theatrical revenues ofRs. 120 Billion, and a 4% increase in the number
of screens. Indian films have also gained a strong foothold in the global market, with 339
films released overseas in 2023.
Financial Overview during the Year
Our consolidated revenue for FY 2023-24 stood at Rs. 25,416 Lakhs, up
from Rs. 14,405.07 Lakhs in FY 2022- 23, marking an impressive growth of 76.44%. Our
EBITDA increased from Rs. 2,785 Lakhs to Rs. 6,847 Lakhs, with Profit before Tax (PBT)
improving from Rs. (2,794) Lakhs to Rs. (375) Lakhs.
This progress can be attributed to our asset-light and debt-light
model. We successfully sold an asset worth Rs. 81 Crores and used the proceeds to reduce
debt, supplemented by an infusion ofRs. 45.2 Crores from the promoters and Rs. 15 Crores
from an investor in the equity share capital of the Company. The Board of Directors also
approved the sale of our shareholding in R&H Spaces Private Limited, at an enterprise
value of not less than Rs. 270 Crores, positioning Cineline as a net debt-free Company.
Our adoption of a low capital expenditure model and strategic
enhancement of average ticket prices have played pivotal roles in improving our revenue
and profitability. The monetisation of assets, including the sale of a mall, has further
strengthened our financial position.
New Developments
Cineline experienced significant growth and remarkable milestones this
year. A highlight was the opening of our MovieMAX Multiplex at Amanora Mall in Pune,
featuring eight auditoriums with a total seating capacity of 1,865, 2K projection
technology, and immersive sound systems. This has expanded our footprint in Maharashtra to
52 screens.
Our expansion strategy includes 15 additional operational screens
across India and new properties in Gurugram, Haryana, and Zirakpur, Punjab. By acquiring
fully fitted, plug- and-play screens and renovating existing ones, we have reduced costs
and enhanced the consumer experience. With a current total of 76 screens operational
across 14 cities, we are committed to delivering unparalleled cinematic journeys.
We have infused Rs. 45.2 Crores into the business, reflecting our
growth prospects and financial stability. Additionally, we are enhancing the food &
beverage experience by incorporating cloud and physical kitchens within our cinema
complexes and launching various food & beverage brands to ensure a comprehensive and
delightful outing for our patrons.
The Bigger Picture
India's cinema market remains under-screened compared to global
standards, presenting substantial opportunities for growth and expansion. Cineline aims to
bring high-quality cinematic experiences to under-resourced regions by targeting smaller
towns and budget segments. Our approach focusses on providing affordable yet premium
movie-going experiences, aligning with our goal of democratising access to quality
entertainment.
Closing Note
Cineline stands at the cusp of a transformative era in the
entertainment industry. Our strategic initiatives, including expansion of our screen
count, investing in the food & beverage sector, and targeting under-screened markets,
position us to capitalise on the immense opportunities within the Indian cinema market.
We are dedicated to creating unforgettable experiences for our patrons
while driving sustainable growth and profitability. On behalf of the entire Cineline team,
I extend my gratitude to our valued stakeholders for their continued support and trust.
Together, we will continue to redefine the boundaries of cinema entertainment, creating
cherished memories for generations to come. Thank you.
Regards,
| Mr. Rasesh B. Kanakia |
| Chairman |
| Cineline India Limited |