PVR INOX Ltd — Q4 FY26

PVR INOX Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=X2yQDLWjx78 Published: 2 days ago

0:00 Ladies and gentlemen, good day and welcome to the PVR Inox Limited Q4 FI26 0:07 7 seconds earnings conference call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen 0:15 15 seconds only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the this 0:22 22 seconds conference call, please signal an operator by pressing star then zero on touchstone phone. Please note that this conference is being recorded. I now hand 0:31 31 seconds the conference over to Mr. Jaram Shetti from ICIC securities. Thank you and over to you sir. 0:38 38 seconds Good afternoon everyone. I welcome you all uh to PVROX uh quarter for FI26 earnings call. The call will start with 0:48 48 seconds brief management remarks on the earning performance followed by interactive Q&A session. Uh PVR IMOX management will be 0:56 56 seconds represented by Mr. Dr. Ajay Bijni, managing director, Mr. Fanji Kumar, executive director, 1:03 1 minute, 3 seconds uh Mr. Gorov Sharma, CSO and other uh senior management personnel. Over to you sir. 1:15 1 minute, 15 seconds Good evening everyone. This is Ay Vishi like to welcome you to discuss the audited results for the quarter and the year ending March 31st, 2026. 1:25 1 minute, 25 seconds The earnings presentation and results were uploaded to our website and the stock exchanges earlier today and I hope 1:32 1 minute, 32 seconds you've had a chance to review them. FI26 was a defining year for PBI Inox. We delivered our best ever financial 1:40 1 minute, 40 seconds performance, brought net debt to a negligible level and pivoted decisively to a capital light growth model even as 1:48 1 minute, 48 seconds the Indian box office reached an all-time high. Today, PV Anox is structurally stronger than at any point in our history. Within India's 1:57 1 minute, 57 seconds exhibition industry, PVROX stands apart as a well-loved consumer brand with unmatched market leadership and scale. 2:04 2 minutes, 4 seconds Today, we operate nearly 40% of the country's multiplex screens and capture 31% of India's box office with prime 2:11 2 minutes, 11 seconds locations, premium formats, and the trust audiences place in our brand. We are the preferred partner for India's leading mall developers and top food 2:20 2 minutes, 20 seconds producers and the and the industry we lead is itself on a strong long-term trajectory. India's box office has grown 2:29 2 minutes, 29 seconds at a 7 to 8% compounded growth rate over the last uh decade reflecting the sustained structural demand for movie 2:38 2 minutes, 38 seconds watching in cinemas. Theatrical first is now firmly the dominant release uh model as producers and OTD platforms alike 2:46 2 minutes, 46 seconds recognize that theatrical performance sets the quantitative and the qualitative benchmark for a film. 2:52 2 minutes, 52 seconds Against this backdrop, FI26 was the strongest year in the industry's history with collections rising 11% to 13,519 crores. 3:03 3 minutes, 3 seconds Uh the standout was a resurgence of original Hindi cinema with Bollywood collections growing 55% yearonear 3:11 3 minutes, 11 seconds delivering its best year ever. English cinema also delivered a strong year growing 54% on a robust slate of 3:18 3 minutes, 18 seconds Hollywood releases. Another big positive trend in FI26 was a solid comeback of midscale sales grossing between 100 to 3:26 3 minutes, 26 seconds 200 crores which saw its share rising from 12 to 20%. Growth is now broader, more resilient and less dependent on a 3:34 3 minutes, 34 seconds handful of mega blockbusters. Coming to our performance, Q4 FI26 recorded our highest ever fourth quarter collection 3:42 3 minutes, 42 seconds supported by titles like Gurand, The Revenge, Border 2, Project, Hailberry amongst others. We welcomed 31 million 3:49 3 minutes, 49 seconds guests in the quarter and 150 million across the year, which is a 10% growth over FI 25. ATP for the year stood at uh 3:59 3 minutes, 59 seconds 280 rupees which is up by 8% compared to previous at 147 compared uh up by 10%. 4:07 4 minutes, 7 seconds both record highs. In Q4 ATF, ATP touched 315 rupees and SP 165 rupees on 4:16 4 minutes, 16 seconds an India's 16 adjusted basis. FYI26 revenues was a record of uh uh 6,742 4:26 4 minutes, 26 seconds crores up 16% year-on-year. Aida the four exceptional items doubled to uh 968 crores 4:34 4 minutes, 34 seconds uh rupees 968 crores with margin expanding from 8.4% to 14.4%. 4:40 4 minutes, 40 seconds Reflecting both strong revenue growth and the cost discipline we have sustained for several years. FI26 also 4:46 4 minutes, 46 seconds recorded the highest ever pack at 386 crores against a loss of 152 crores in FI25. 4:56 4 minutes, 56 seconds For quarter four, a quarter four revenue grew 25% to 157,577 5:03 5 minutes, 3 seconds crores. I beta rose nearly sixfold to 169 crores and that was 178 crores uh 5:13 5 minutes, 13 seconds versus a loss of uh one about 10 crores 5:18 5 minutes, 18 seconds 106 crores. Part 4 Q4 26 and fiscal 2026 also included gains on the uh devestment 5:25 5 minutes, 25 seconds of uh 47 and BC to Marico. On growth our model has pivoted decisively to capital 5:32 5 minutes, 32 seconds light. Of the 93 new screens added in FI26 55% came under capital light formats with around 44% of additions in 5:41 5 minutes, 41 seconds underpreet South India. Screen exits dropped sharply to 18 from 72 last year as a post merger portfolio rationalization is largely behind us. 5:50 5 minutes, 50 seconds Our signed capital light pipeline now stands at 138 screens 52 under foco and 86 under asset light. Capex intensity is 6:00 6 minutes down 24% yearon-year basis. Robust operating performance, sustained cost discipline and reduced capital intensity 6:09 6 minutes, 9 seconds have driven consistent free cash flow generation over the past three years with FI26 6:15 6 minutes, 15 seconds free cash flow reaching an all-time high of 790 crores. This cash flow has been 6:24 6 minutes, 24 seconds deployed towards debt reduction thereby strengthening the balance sheet. And net debt now is nearly down 90% since the 6:31 6 minutes, 31 seconds merger to a negligible level of INR 161 crores as of 31 March 2026. Return on capital employed has improved to 10.2% 6:40 6 minutes, 40 seconds in FI26. A clear breakout and we will continue to work towards improving it further. Looking ahead, FI2 content 6:48 6 minutes, 48 seconds pipeline is broad and diverse across Hindi, English and regional cinema giving us strong confidence in the trajectory. On the Hindi front, 6:56 6 minutes, 56 seconds anticipated titles include Cocktail 2, The Mal 4, Welcome to the Jungle, Jungle, uh, Aara Fun 2, Raman, uh, 7:05 7 minutes, 5 seconds Ramayana Part One, King, Love and War, and with several other films also lined up. Regional cinema continues to offer exciting content lineup like Peggy, 7:13 7 minutes, 13 seconds Toxic, Jailer Tool, Spirit amongst others. Hollywood is lined up with Master of the Universe, Toy Story 5, The Odyssey, Spider-Man, 7:21 7 minutes, 21 seconds Grand New Day, Avengers, Doomsday, and many others. We enter FI27 with the strongest balance sheet in our history, an exciting and diverse content 7:30 7 minutes, 30 seconds state, a strong pipeline of new stream signings and an industry tailwind that is structurally stronger. We are confident the next chapter will compound 7:37 7 minutes, 37 seconds on what we delivered this year. With that, I open the floor for questions. Thank you. 7:43 7 minutes, 43 seconds Thank you very much. We will now begin the question answer session. Anyone who wishes to ask the question may press star N1 on the touchstone telephone. If 7:52 7 minutes, 52 seconds you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets for asking a question. Ladies 8:00 8 minutes and gentlemen, we will wait for a moment while the question assembles. 8:08 8 minutes, 8 seconds We have first question from the line of Agnas Roy from NUMA. Please go ahead. 8:15 8 minutes, 15 seconds Thank you uh and congrats on fantastic debt reduction. So that will be my first question. Uh so in terms of uh debt 8:23 8 minutes, 23 seconds obviously now it is negligible. So what will be your expectation given uh uh light asset uh uh strategy going ahead 8:32 8 minutes, 32 seconds in uh next year FI27 also. So what kind of screen addition you expect? what kind of own screen versus uh the low effect 8:40 8 minutes, 40 seconds uh model and uh what would be the plan once you have uh netcash uh would you like to start dividend also? 8:51 8 minutes, 51 seconds Well, firstly the pipeline uh about 120 odd screens visibility we have to open uh we have that we'll be opening next 8:59 8 minutes, 59 seconds year u and the percentage of screens opening uh in foco and asset light model 9:06 9 minutes, 6 seconds will uh was 55% this year it'll continue to to be between 55 to 60% and u so that 9:14 9 minutes, 14 seconds is uh your first question and uh secondly uh you know with the kind of uh lineup up and that we're looking at I 9:23 9 minutes, 23 seconds think uh we will continue to have healthy cash flows and uh definitely we want to get into a situation uh where we 9:31 9 minutes, 31 seconds are cash positive and uh and of course then the board will meet and decide uh what should be done with the approvals 9:39 9 minutes, 39 seconds we haven't uh given it much thought at the moment uh gor would you like to add something to it 9:48 9 minutes, 48 seconds so I think you've covered all the key points and nothing incremental. Okay. 9:54 9 minutes, 54 seconds Sure. Uh my second question is slightly on the macro side. Uh so two parts to that. Uh one of course uh prime minister 10:02 10 minutes, 2 seconds has said yesterday not to buy too much gold generally next one year and not to travel outside also. Now obviously 10:10 10 minutes, 10 seconds diesel and petrol price hike is just a uh event which will happen very quickly. 10:16 10 minutes, 16 seconds Now would you expect some kind of a consumption impact on multiplex doing also given urban uh uh disposal income 10:25 10 minutes, 25 seconds can get impacted and slightly related question one of the key south Indian state now has a chief minister who is a 10:32 10 minutes, 32 seconds obviously one of the biggest hero so any uh possible positive news either in that state or any of the other state any uh 10:41 10 minutes, 41 seconds positive regulatory you expect in the medium long term not asking immediate because these can't be predicted. 10:49 10 minutes, 49 seconds Yeah, I mean first uh firstly I must tell you that obviously it's not very uh you know it's a macroeconomic scenario 10:56 10 minutes, 56 seconds uh is something that the PM has spoken about and asked to say take such an austere measures uh that's uh that's all 11:04 11 minutes, 4 seconds due to the West Asia crisis and uh obviously that that doesn't sound that good overall but having said that uh you 11:12 11 minutes, 12 seconds know uh we uh history has shown uh that cinema uh being still a very small 11:18 11 minutes, 18 seconds ticket size. If you look at not TVR is ATP is 280 and overall if you look at India India is maybe the average ticket 11:27 11 minutes, 27 seconds price is somewhere between 150 maybe if you look at all the single screen multiplexes which are there it's still a 11:34 11 minutes, 34 seconds very and average transaction size is 2 to 2.5 when people go and watch a movie typically history has shown uh that I 11:43 11 minutes, 43 seconds don't want to use the word recession but I'm just saying in challenging times uh cinema going actually benefits. Uh 11:51 11 minutes, 51 seconds people do go out uh and then they eliminate all other discretionary spends of traveling and you know uh other things that they do uh leisure 12:00 12 minutes activities but cinema uh generally bounces back and people do like to entertain themselves in cinemas. So I'm 12:07 12 minutes, 7 seconds not saying that it's is good what is happening as an impact of Indonesia crisis but we do not directly see that there will be any impact to our own 12:16 12 minutes, 16 seconds business uh due to this and on Tamil Nadu or any of the other 12:22 12 minutes, 22 seconds state anything positive you expect given government it is too early just I think only today 12:30 12 minutes, 30 seconds is become the CM there is no uh I don't think that is probably on number one unless agenda just now. So we we don't 12:38 12 minutes, 38 seconds know of any regulatory uh you know positive or what kind of news is going to come out of termin. 12:45 12 minutes, 45 seconds Uh last quick question if I see your revenue streams advertising seems to have been the slowest growth. Uh obviously now there will be margin 12:54 12 minutes, 54 seconds pressure for all corporate advertisers and even uh non-corporate advertisers in Q1 and possibly Q2. So what is the 13:02 13 minutes, 2 seconds outlook on that? And uh when I analyze IPL uh in cities where IPL has been held 13:09 13 minutes, 9 seconds and cities where non uh there's no IPL actual match have you seen uh box office performance different because say in 13:18 13 minutes, 18 seconds Bombay uh there is a IPL match uh obviously a customer has a choice uh but in a city like Patna where there's no 13:26 13 minutes, 26 seconds IPL match or say any other city like that are you seeing uh box office growth in Q Q4 before where IPL has been there a bit faster than in such cities. 13:37 13 minutes, 37 seconds No, I I I didn't I think IPL is is completely has no impact on cinema going at all. We have seen no correlation. So 13:45 13 minutes, 45 seconds many movies have got released in the last uh few weeks ever since IPL has started whether in the city where it is they're being played or in any case the 13:53 13 minutes, 53 seconds city in which it is being played you know there's only so much capacity that that that city can take in its stadium and all these cities are pretty 14:01 14 minutes, 1 second populated and I think both of these things are very different forms of entertainment those who want to watch cricket they watch cricket those who want to go and watch a movie they watch 14:10 14 minutes, 10 seconds a movie so I don't think one eats into the other at all we haven't seen any evidence of that and as far as advertising is concerned uh uh I will uh 14:19 14 minutes, 19 seconds let Gotham Datar our CEO answer you uh address that question for you about uh 14:26 14 minutes, 26 seconds the the impact of uh uh any challenging times on advertising would like to answer that yeah yeah uh so thank you so much uh 14:35 14 minutes, 35 seconds first and foremost I would want to also add on IPL we are also screening quarterfinals semi-finals and the finals 14:42 14 minutes, 42 seconds in our cinemas uh and completely validated what uh Mr. Biji said that there is absolutely zero impact. In 14:50 14 minutes, 50 seconds fact, it plays um pretty uh well for us and there's been absolutely zero impact 14:57 14 minutes, 57 seconds on advertising. Uh just to while these numbers are a bit subdued uh most of our 15:04 15 minutes, 4 seconds uh uh growth this year also came in from a lot of sleeper hits which became really really big at the box office 15:11 15 minutes, 11 seconds which was great news. And there were about two or three big blockbuster films like Janagayan and Toxic which 15:19 15 minutes, 19 seconds technically moved. If those two films would have got released because they were a Pongal release and then uh early 15:27 15 minutes, 27 seconds Jan release uh that would have actually uh helped us to register at least the 7 15:34 15 minutes, 34 seconds 8% growth on advertising. So largely we are on track. uh it's just that some of the big blockbusters moving has kind of 15:42 15 minutes, 42 seconds impacted and and whenever a movie moves there is a bit of a vacuum that gets created and because of which this 15:50 15 minutes, 50 seconds happened but having said that this year seems to be a very balanced uh year both in terms of Bollywood Hollywood as well 15:58 15 minutes, 58 seconds as regional and while uh the the primary growth in advertising the way we are 16:05 16 minutes, 5 seconds seeing will come uh in H2 uh simply because of the mega titles getting released uh in in October, November, 16:14 16 minutes, 14 seconds December period. Uh but we are well poised this year to uh to be on a uh on 16:21 16 minutes, 21 seconds on a on our projected growth path as we have shown over the last so many years and there would be no deviation there. 16:31 16 minutes, 31 seconds Sure. Thank you. That's all from my side. 16:35 16 minutes, 35 seconds Thank you. We have next question from the line of Uang Meta from COC Securities. Please go ahead. 16:42 16 minutes, 42 seconds Hi. Uh thanks for the opportunity and congrats on a strong year. Uh my first question is on uh the pipeline. So uh 16:50 16 minutes, 50 seconds currently based on uh whatever uh uh in the pipeline, what's the conviction uh in terms of uh footfall growth or 16:58 16 minutes, 58 seconds occupancies for F27? U any any uh guess you can have that for us? 17:05 17 minutes, 5 seconds You're talking about the pipelines of this full year. Yes. 27. 17:11 17 minutes, 11 seconds Yeah. I mean I can start from this quarter itself. You've got uh you know you got this path of war coming and then 17:19 17 minutes, 19 seconds you've got uh uh you know uh later on so many films. Odyssey is there. Reminder is a big one. Uh this three uh is 17:28 17 minutes, 28 seconds coming. You've got the Mal. You got welcome to the jungle. You got cocktail 2. uh there's a you know a movie called Shan Mirael which is coming then later 17:36 17 minutes, 36 seconds on big movies like uh Odyssey uh in Hollywood films you've got u uh this 17:42 17 minutes, 42 seconds time Star Wars uh Toy Story you got Evil Dead Odyssey is a very big one Spider-Man is coming a Dune 3 is coming 17:50 17 minutes, 50 seconds Avengers which is always very big in India Jumanji uh a lot of regional movies I mean Toxic is bound to come this year uh there was a gentleman who 17:59 17 minutes, 59 seconds was asking the question about uh the chief minister of newly appointed chief minister of uh uh you know Tamil Nadu his movies in fact 18:08 18 minutes, 8 seconds uh Jana Nan is coming uh and that's got a very good traction is coming uh Gabru 18:16 18 minutes, 16 seconds of uh uh what do you call funny girl is coming so so plenty of movies I can rattle off the entire lineup but I think this should be enough 18:24 18 minutes, 24 seconds uh we're okay with it and so in this on this like given this backdrop are you confident that occupancy levels is uh will keep inching 18:33 18 minutes, 33 seconds up. Can we you know uh maybe pencil in mode 27 uh plus uh for F27 or how are you thinking internally? 18:43 18 minutes, 43 seconds I mean as a as it the trend is only that it goes up and uh I've been talking to a lot of people about the macro picture of 18:50 18 minutes, 50 seconds uh India 1500 films get released every year. So you know movie by movie if one movie does well one doesn't do well 18:58 18 minutes, 58 seconds doesn't matter to us that much but on overall basis I think there's a caggr growth of 8% in the Indian box office uh 19:06 19 minutes, 6 seconds our occupancies are increasing the number of films which are the bracket of 100 to 200 cr movies is only increasing every year the bracket of 500 plus 19:15 19 minutes, 15 seconds movies is only been increasing postcoid so obviously all these factors more and more uh uh investment is being made by the film fraternity into movies for the 19:24 19 minutes, 24 seconds big screen. If you look at uh uh OTT versus uh exhibition uh you know there 19:30 19 minutes, 30 seconds was a there was a EY uh uh report uh which uh which basically was just got 19:37 19 minutes, 37 seconds released wherein uh calendar year 2022 movies first came to the theaters and 19:44 19 minutes, 44 seconds 105 came to uh OTT. This year 470 have come to theatrical and only 30 have gone 19:51 19 minutes, 51 seconds to OTT. uh so theater first model is a very clear model for all the uh you know 19:59 19 minutes, 59 seconds uh producers so I think there is no reason for us to not be optimistic that uh occupancies from now on are only going to improve. 20:08 20 minutes, 8 seconds Sure sir thanks for that. The second question was on one of your growth vectors uh which was mentioned about year two and uh uh below cities. So any 20:18 20 minutes, 18 seconds uh update you can share on the smart screens uh pilots which are you are kind of learning? 20:24 20 minutes, 24 seconds Yeah, I think by July 15th uh uh couple of pilots will open. Um I think uh we're calling them pilots but we're very 20:31 20 minutes, 31 seconds confident because these are in good cities. Uh good deals have been signed by the developers. Demographic studies have been done. So by July 15th or mid 20:40 20 minutes, 40 seconds July at least two of them will open and we're hoping to open close to 28 to 30 screens under this model 20:48 20 minutes, 48 seconds in S27 or over the next year open. 20:56 20 minutes, 56 seconds Got it. And uh just two bookkeeping questions uh for Goro. So uh one is the KEX outlook. I mean if you can share a a 21:03 21 minutes, 3 seconds ballpark range for next year and what was the management fee income in F26 from the focus screens. 21:12 21 minutes, 12 seconds So next year I mean financial year 27 we expect around 375 to 400 crores of overall capex which will be spent across 21:21 21 minutes, 21 seconds new projects as well as renovation of some of our uh high you know high value cinemas and uh our management income has 21:29 21 minutes, 29 seconds seen a sharp increase even though uh at an absolute level it is about close to 10 crores for financial year 26 but on a 21:37 21 minutes, 37 seconds run rate level it is uh at about 13 to 14 crores for Adam and it's growing. 21:44 21 minutes, 44 seconds Got it. Thank much all the best. Thank you. Thank you. 21:52 21 minutes, 52 seconds We have next question from the line of Ari Kapoor from Invest. Please go ahead. 22:00 22 minutes Hi, good evening. Uh so the first session was just to get your sense on the uh uh capitalite uh you know model. 22:08 22 minutes, 8 seconds uh if you could just help us understand that you know what is the number that we currently have already in this model uh 22:15 22 minutes, 15 seconds and uh incrementally uh you know what's the kind of uh within the 126 pipeline what what that number looks like uh 22:24 22 minutes, 24 seconds going forward that's the first question and the second one was uh on the rental side so you know I've seen that there is 22:32 22 minutes, 32 seconds some reduction as the rent as a percentage of sales starting to kind of come down as maybe capital uh you know life model kicking in as 22:40 22 minutes, 40 seconds well as some operating leverage that you're getting on revenue. Uh just wanted to understand that over a two three-year period you know once this 22:47 22 minutes, 47 seconds capitalite uh piece picks up as well you know what what kind of you know basis point savings one can think of in this 22:55 22 minutes, 55 seconds line item which is your largest opex plan item. Thanks uh would you like to answer this? 23:02 23 minutes, 2 seconds Sure. Sure. So Harit I think we've given that data as part of our investor presentation as well in current you know in financial year 26 overall we have 23:11 23 minutes, 11 seconds added about 50 uh one screen under capital light model of which 29 were uh 23:18 23 minutes, 18 seconds asset light where developer contribution was and uh 22 screens were under focal model 23:26 23 minutes, 26 seconds where you know it was completely franchisee owned and company operated. 23:30 23 minutes, 30 seconds uh overall I think going forward uh we have about 138 screens which are signed under capital light of which 52 are 23:39 23 minutes, 39 seconds under FOC model and about 86 are under asset light. So that's one. Second, in terms of going forward, our rental uh 23:48 23 minutes, 48 seconds cost of course in capitaliz model and franchising model is going to be lower as compared to cinemas where we invest 23:56 23 minutes, 56 seconds uh you know our entire capex and uh you know that appears in our P&L at this stage. uh you know it's hard for us to 24:04 24 minutes, 4 seconds give a guidance on what exact percentage drop that will happen in terms of percentage of revenue but uh overall the 24:11 24 minutes, 11 seconds trend will be uh on asset light will be on the lower side and and just a follow up is that this 24:19 24 minutes, 19 seconds 138 number uh that you mentioned uh that gets executed over what period of time? 24:25 24 minutes, 25 seconds This will get executed over next 18 months. Okay. Okay. next week. 24:34 24 minutes, 34 seconds Great. I'll come back soon. Thank you. 24:38 24 minutes, 38 seconds Thank you. We have next question from the line of Arun Prashant from Amendas Park. Please go ahead. 24:47 24 minutes, 47 seconds Uh good evening uh everyone. Thank you for the opportunity. My first question is on this satellite model. uh I I 24:55 24 minutes, 55 seconds understand uh the trade model exists in uh diversifying the risk of content uh 25:03 25 minutes, 3 seconds but what I'm trying to understand is now that we have a very neat balance sheet uh our constraint on balance sheet is 25:10 25 minutes, 10 seconds not there and uh unless and until we we we go for a very large number of screens 25:19 25 minutes, 19 seconds um how is the lake model helping us because I the I'm seeing is that your your screens count is increasing but 25:28 25 minutes, 28 seconds your capital deployed capex deployed is decreasing which will be at this point of time because we have 25:36 25 minutes, 36 seconds enough resources so can I just throw a light of what is our objective of doing a satellite port going forward if we 25:44 25 minutes, 44 seconds have enough resources if you if you are generating enough operating cash flows and we don't have any restrictions because of the balance sheet uh debt constraints 25:52 25 minutes, 52 seconds oh asset model and the focal model is straight away your ROC is improved dramatically. So I think uh uh beyond a 26:00 26 minutes point uh uh you know if you look at our entire circuit I mean we this we just started about three years ago uh I mean of course we had some properties under 26:09 26 minutes, 9 seconds management uh earlier on uh but I think because the brand is now recognized and 26:15 26 minutes, 15 seconds uh everywhere I think sweating the brand is something that uh you know is something it's a very natural 26:22 26 minutes, 22 seconds progression and uh uh for any brand to do. So in the hospitality sector, retail sector and even in the uh you know some 26:31 26 minutes, 31 seconds of the restaurants sector this is something which is very common. uh so so you have a healthy balance of growing with your own capex as well and at the 26:40 26 minutes, 40 seconds same time uh uh you know wherever the opportunity lies to improve your uh ROCE 26:47 26 minutes, 47 seconds uh you you are you should be uh you know looking at this model as well and uh I think uh even even if you have cash 26:55 26 minutes, 55 seconds flows it doesn't matter they have to be deployed uh on on our own expenditure number one number two screen expansion 27:02 27 minutes, 2 seconds of 120 to 150 screens in a uh is quite healthy because we still want to have unit level economics working both for us 27:10 27 minutes, 10 seconds and uh uh the developers who are spending the money. Uh so we we always PBR Inox has been very careful about our 27:19 27 minutes, 19 seconds screen expansion strategy not for the heck of it uh we should just put screens everywhere. Wherever the demographics are correct, market dynamics are correct 27:28 27 minutes, 28 seconds where we get a good deal is where we want to grow. So unit level economics have to make sense and given the pace of 27:35 27 minutes, 35 seconds uh shopping centers and malls and opportunities in the smaller towns I think uh growing by 100 odd screens every year is still pretty healthy. 27:45 27 minutes, 45 seconds Gorov you'd like to add something more. Uh no nothing incrementally. 27:53 27 minutes, 53 seconds uh one is just clarification the unit economics of the screen is not dictated by who funds the capex so 28:01 28 minutes, 1 second obviously roic at the property level uh is not going to change because of we putting an asset light or obviously at 28:10 28 minutes, 10 seconds our balance sheet it makes a difference but as long as that unit economics works in a particular catchment area and roic 28:16 28 minutes, 16 seconds is not going to be different because of what group uh So, so ideally if we have enough 28:24 28 minutes, 24 seconds balance unless until as I said the mall supply is so high and we can't be catering to all those screens by ourselves then assert like makes sense 28:33 28 minutes, 33 seconds to me just just a bit more in one sense of know we are doing this if you have enough uh balance sheet is what my 28:42 28 minutes, 42 seconds original question is I'll leave it to you to answer that please. So I think uh u you know the as Mr. 28:50 28 minutes, 50 seconds briefly explained earlier the strategy is not to use our own capex use our own capital to uh open every screen. I think 28:58 28 minutes, 58 seconds the idea of the merger that we did three years back was to create market leadership, a strong brand that we can leverage visav uh the new screen 29:06 29 minutes, 6 seconds editions. uh we are what we are saying is that our new screens will be a healthy mix of uh lease model where we 29:14 29 minutes, 14 seconds will put in our own capex especially in markets where there's high competitive intensity particularly in south India and in other markets in the country 29:22 29 minutes, 22 seconds where there is uh you know uh we have uh good market share and a very strong brand and the competitive intensity is 29:29 29 minutes, 29 seconds less we would like to partner with the developers with capital contribution and also you know do only franchise deals Uh 29:37 29 minutes, 37 seconds the whole idea is that we fund our growth through our own internal acruals rather than using capex uh and you know 29:43 29 minutes, 43 seconds borrow uh through debt and grow uh you know and make use of our balance sheet uh to fund the growth for future. It 29:52 29 minutes, 52 seconds also you know helps to improve the return metrices uh and that's quite visible uh when we uh look at the numbers that we've reported in financial year 26. 30:04 30 minutes, 4 seconds Okay. Uh so which means imply what it implies is if you are if you are going to steady state generate an operating cash flow of north of uh 700 800 crores 30:14 30 minutes, 14 seconds ideally uh we should put all this in to the deployment and uh and develop more screens that is a that is what we can 30:22 30 minutes, 22 seconds expect in a steady state basis. So because India is so entrepreneured market in terms of screen 30:29 30 minutes, 29 seconds also a question of supply you know you uh there has to be enough opportunities and unit economics should stack up uh 30:37 30 minutes, 37 seconds for that location for that mall uh for a multiplex to be operating. So it's a combination of multiple factors 30:47 30 minutes, 47 seconds and and you know see uh so basically uh screen expansion is not getting compromised because of asset light and 30:55 30 minutes, 55 seconds foco uh model screen expansion uh is is is completely robust and wherever there 31:02 31 minutes, 2 seconds is a good opportunity we're just utilizing our capital in such a manner that there is uh we are being prudent 31:08 31 minutes, 8 seconds about how to utilize our capital uh that's That's all we're doing. We're not compromised just because we're doing foco and and asset light. It is not 31:17 31 minutes, 17 seconds compromising on the screen growth strategy that continues to remain uh you know whatever opportunities which are coming our way. Uh and when we if we 31:26 31 minutes, 26 seconds evaluate it and it and the unit level economics work we basically are grabbing on to it. The what model we work it in is not going to compromise on the screen 31:35 31 minutes, 35 seconds growth the percentage growth we want to increase. 31:38 31 minutes, 38 seconds Understood. Uh thanks for that education on the Thank you. We have next question from 31:46 31 minutes, 46 seconds the line of Mr. Jign Josie from PL Capital. Please go ahead. 31:51 31 minutes, 51 seconds Uh yeah uh thanks for the opportunity and congrats on the uh balance sheet improvement. Uh just one observation on 31:59 31 minutes, 59 seconds the balance sheet side. I see that our ROU asset has come down from about uh 4,900 crores in FI25 32:08 32 minutes, 8 seconds uh to about 4,600 crores in SI26 but uh correspondingly we have added about uh 42 odd screws on uh in these bases and 32:17 32 minutes, 17 seconds about uh 29 on asset like basis which effectively means that uh there has to be some uh capitalization on the balance sheet with respect to uh these screens. 32:29 32 minutes, 29 seconds uh so just wanted to know why the roou uh figure has come down when we have had screen editions in 26. 32:38 32 minutes, 38 seconds So uh roou as you know roou assets depreciate over time and simply because 32:46 32 minutes, 46 seconds the depreciation over the last one year has been more than the uh gross additions in the roou on lease model 32:53 32 minutes, 53 seconds screens that's why there is a drop in roou assets uh because if you add if you add focus screens and asset light 33:01 33 minutes, 1 second screens the contribution of these screens on roou assets is uh much smaller than uh a fully leased uh sort of screen editions. 33:14 33 minutes, 14 seconds Do we also capitalize focus screens? My understanding is that uh under under that model the CD belongs to the developer and not us. 33:24 33 minutes, 24 seconds We don't capitalize focus. Sorry, you go ahead please. Yeah. 33:30 33 minutes, 30 seconds We don't capitalize focus screens on our books. Okay. 33:35 33 minutes, 35 seconds In the asset like model it belongs to the belongs to us and belongs to the company. In the asset like model where there is a developer contribution the 33:43 33 minutes, 43 seconds P&L is our right right. Uh and and uh secondly I just wanted some uh clarification on the 33:52 33 minutes, 52 seconds keex figure that you mentioned uh for FI27. uh if I heard you right uh you have given a figure of about uh 375 to 34:00 34 minutes 400 crores and we plan to open about 1207 uh whereby 55 to 60% will be on the so 34:08 34 minutes, 8 seconds and the asset light model where typically our commitment uh has to be uh very negligible uh so just wanted to 34:15 34 minutes, 15 seconds understand why this uh figure is high I understand we have renovations as well which you highlighted in the opening remarks but we can break this number 34:24 34 minutes, 24 seconds into new organic keeps and renovations it will be uh really helpful. 34:31 34 minutes, 31 seconds Yes, I think uh roughly around uh you know about 225 to 250 crores we will spend on uh new projects which will be 34:41 34 minutes, 41 seconds you know across uh payments which are due for uh projects which are under fit out as well as new handovers that we'll 34:48 34 minutes, 48 seconds take during the year and about 80 to 100 crores will be spent on renovation and the balance we will spend on maintenance 34:56 34 minutes, 56 seconds and IT Got that. Uh one last question from my 35:02 35 minutes, 2 seconds side. Uh on in FI26 we closed about uh 18 and I believe we have had some 35:10 35 minutes, 10 seconds closures in FI25 as well. Uh just wanted to get some sense. Uh have any of these 35:16 35 minutes, 16 seconds properties uh that uh we have vacated uh have they been occupied by any of the can you give some color on that? 35:27 35 minutes, 27 seconds uh some of you know some of the malls themselves are very decrepit and they did not have any uh potential uh at all 35:37 35 minutes, 37 seconds to be revived uh you know because you know PBR itself started in 97 started in 2000 so some of these wars and visas are 35:46 35 minutes, 46 seconds all you know 20 years I mean say 15 16 years uh in existence 20 years in existence so uh they've been replaced by 35:56 35 minutes, 56 seconds newer malls and newer multiplexes in the same demographic by us only. Uh so we've only moved to a better mall, better 36:04 36 minutes, 4 seconds destination and in certain cases the malls have been converted into other users and uh some some malls have closed 36:13 36 minutes, 13 seconds down in certain some operators uh have taken it but from our scheme of things uh uh it did not make sense for us to 36:20 36 minutes, 20 seconds grow uh continue on those on those properties. 36:25 36 minutes, 25 seconds Okay sir. Uh thank you. Thank you so much and all the best. 36:30 36 minutes, 30 seconds Thank you. A reminder to all the participants please ask please restrict yourself to two two per questions. 36:39 36 minutes, 39 seconds We have next question from the line of Samir Gupta from Captor. Please go ahead. 36:47 36 minutes, 47 seconds Uh hi sir and thanks for taking my question. Uh sir uh I had a broader industry question. Now uh uh this is 36:55 36 minutes, 55 seconds regarding industry footfalls and occupancy. What I understand is that FI26 has been a quite a normal year in 37:02 37 minutes, 2 seconds terms of say Hollywood coming back, OTT heat normalizing uh uh and we have seen that evidence in terms of direct OTT 37:10 37 minutes, 10 seconds releases and so on. Uh also overall consumption uh uh uh across the board has been picking up. When I look at our 37:18 37 minutes, 18 seconds occupancy level of 25.8% 8% uh this is very similar to 23 24 levels. So what 37:26 37 minutes, 26 seconds gives us the confidence that uh this is still not the new normal postco and there can still be improvement. I 37:33 37 minutes, 33 seconds understand content lineup but uh quite frankly if there are like 1500 2,000 releases in a year I mean 1500 will be 37:42 37 minutes, 42 seconds of good quality is the general consensus. 26.2 2 is what we close the year on. 37:50 37 minutes, 50 seconds Oh, okay sir. But still the question still remains. 37:54 37 minutes, 54 seconds Yeah. Yeah. Yeah. So I uh it's uh uh it's a you know so every year there are explainable reasons. This particular year I think February was not very good. 38:03 38 minutes, 3 seconds Diwali which is an aberration uh wasn't u uh normally you have big uh Diwali releases. So so that didn't happen. But 38:12 38 minutes, 12 seconds I think we're moving in the uh in the in the right direction of uh you know more and more movies coming on the big screen. Uh more and more people 38:21 38 minutes, 21 seconds preferring to watch it on the big screen than any other format. Um and uh so I I see no pessimism or skepticism to think 38:30 38 minutes, 30 seconds that this occupancy level will level come up. Secondly, we're not just we're looking at occupancy levels at at one uh level but we're also looking at our 38:39 38 minutes, 39 seconds costs uh so that even at say 27 28% occupancy we are able to get the same aida margins that we were getting 38:46 38 minutes, 46 seconds pre-COVID and of course if it if it does go to 31 32% occupancy then uh you are bound to get uh much better margins that 38:55 38 minutes, 55 seconds what even what we were getting pre-COVID because of our uh cost efficiency uh that we are achieving posture 39:05 39 minutes, 5 seconds And you know optimism is also coming from the lineup. Optimism is coming from the fact that more and more filmmakers are making film for the big screen. Uh 39:12 39 minutes, 12 seconds not just in India but uh India when I say Hindi regional and also Hollywood. 39:21 39 minutes, 21 seconds Got it sir. But uh is is there uh uh evidence now that the OTT heat is now behind and this is the new normal or 39:28 39 minutes, 28 seconds there is still uh some uh uh uh some some bit of story left there as in uh uh uh there is still a fatigue associated 39:37 39 minutes, 37 seconds with OTT that might come in future or that has largely played out. 39:42 39 minutes, 42 seconds It's played out. It was always a it was never a substitute. It only became a substitute during the co periods obviously when cinemas are shut. It was always something complimentary. 39:52 39 minutes, 52 seconds Home entertainment has always been complimentary. TV shows people watch at home. But when it comes to movies, the first uh platform where movies are 39:59 39 minutes, 59 seconds monetized and and seen has always been big screen. So I think this debate is quite hackneed and uh outdated now uh 40:07 40 minutes, 7 seconds and and there is enough evidence also uh uh about the degrowth uh of OTT and the 40:14 40 minutes, 14 seconds growth in uh people going out and watching movies on the big screen. 40:19 40 minutes, 19 seconds important. So, so fair assessment here is that uh uh pickup from here on is more driven by macro factors and uh uh 40:27 40 minutes, 27 seconds uh uh uh not specifically uh uh uh uh to PVROX or the the the cinema industry as 40:36 40 minutes, 36 seconds a whole but more to do with macro factors. Is that a correct interpretation? Oh, cinema very much due 40:43 40 minutes, 43 seconds to the because cinema is very much in the cultural fabric of our country you know cinema going so macro factors can 40:51 40 minutes, 51 seconds be anything but this is I'm specifically talking about the film industry and in the film industry all the stakeholders which are the filmmakers uh the OTD 41:00 41 minutes platforms the consumers the mall developers everybody is now making way for theatrical so I think the 41:07 41 minutes, 7 seconds fundamentals of business have always been strong That's the reason why you know the growth in box office numbers 41:13 41 minutes, 13 seconds are there. Uh this year the 13,395 whatever calendar year has been the 41:20 41 minutes, 20 seconds highest ever. And also PBR is it's not just a passive brand. It's a very active brand. We have uh got the best locations 41:29 41 minutes, 29 seconds in the country. We are proactively doing so many marketing activities to make sure uh people come to our cinemas. So 41:35 41 minutes, 35 seconds PBI does get a delta over any other operator any other cinema chain because of the way we position ourselves. So I 41:43 41 minutes, 43 seconds think uh uh it is not just macro it is lot of uh proactive effort that PJ cinemas PG anox makes and also because 41:52 41 minutes, 52 seconds of uh the way the exhibi the film industry is currently uh poised uh you know the fact that movies are doing so 41:59 41 minutes, 59 seconds well at the box office that fact is not lost out on any of the filmmakers because there is no cap to how much a movie can earn when it gets released on 42:07 42 minutes, 7 seconds the big big screen. Smaller movies like Sara, Mahhati, Mahhatar, Narima, Lajjo. 42:13 42 minutes, 13 seconds All these movies were small to medium budget movies and look at the box office collections they have got. 42:21 42 minutes, 21 seconds Got it sir. That that's all from me. 42:23 42 minutes, 23 seconds Thanks again and all the best. Uh uh yeah thank you. 42:30 42 minutes, 30 seconds We have next question from the line of Barak Takar from Port Capital. Please go ahead. 42:37 42 minutes, 37 seconds Yeah. Hi sir. Uh thanks a lot for giving me opportunity and uh thanks a lot uh for a very good performance. Uh I would 42:44 42 minutes, 44 seconds like to ask that see uh fundamentally speaking our stock is completely undervalued and um 42:52 42 minutes, 52 seconds now of course as you rightly said uh the trend is changing. Um from last 6 months 42:58 42 minutes, 58 seconds we are seeing good footfalls. Uh so uh and you are generating so much of operating cash flow and your capex is 43:06 43 minutes, 6 seconds limited. So why would you not consider a buyback? Uh because if you remember 43:13 43 minutes, 13 seconds during COVID also we did a QIP at around uh about 1,300 rupees and still the stock fell below that even after uh such 43:21 43 minutes, 21 seconds successful movies. Uh so and you are saying that pipeline is also looking very robust. So why a buyback where 43:30 43 minutes, 30 seconds promoter will not participate is not an option as a capital allocation decision now that your net is just 160 crores. 43:39 43 minutes, 39 seconds Correct. 43:43 43 minutes, 43 seconds Sure. So uh Mr. Tucker I think you know we have been on the journey of deleveraging over the course of last two three years. As you've seen our net debt 43:51 43 minutes, 51 seconds levels have come down by almost 90% since the merger time and we are now negligible net debt. I think the first goal objective for the company is to 43:59 43 minutes, 59 seconds become a positive net cash which is looking very likely in the near future and uh I think once that is achieved at 44:07 44 minutes, 7 seconds the you know uh uh under the guidance and discussions with the board members and uh you know we will uh also uh 44:16 44 minutes, 16 seconds discuss the capital allocation priorities and objectives of the company uh post that at this stage yes it is 44:24 44 minutes, 24 seconds definitely one of the things which is there in the list but uh you know at this stage we don't have any incremental 44:31 44 minutes, 31 seconds guidance to offer okay sir it is my genuine request that uh once you add net cash I think because 44:40 44 minutes, 40 seconds the stock is completely undervalued uh based on the fundamentals and of course the stock has not rewarded shareholders 44:48 44 minutes, 48 seconds because of the reasons which were not in your hand but now that the tide is turning I would seriously recommend that uh We should go for a buyback. 44:59 44 minutes, 59 seconds Sure. Thank you so much. As I said, nothing is off the table. Thanks. Thanks. Thanks. 45:08 45 minutes, 8 seconds Thank you. 45:10 45 minutes, 10 seconds We have next question from the line of Kavesh Par from 361 Capital. Please go ahead. 45:17 45 minutes, 17 seconds Hi team, thanks for the opportunity and congratulations on a good set of numbers. Uh so your initial capital light uh capitaliz screens are now 45:25 45 minutes, 25 seconds almost 8 10 months old. Uh how would you assess the progress on this initiative so far across both the folk appetite models? What have been the key learnings 45:34 45 minutes, 34 seconds positive challenges or areas where further improvement is required and could you also quantify the margins you are generating on subscreens today? 45:44 45 minutes, 44 seconds Yeah, can you answer that? Yeah, if you have the I think uh we've had you know very strong response on both franchisee as 45:52 45 minutes, 52 seconds well as asset light models on the franchisee screens there has been a very strong uh response especially in tier 2 46:01 46 minutes, 1 second and tier three towns a lot of cinemas that we have opened in the recent past for example in Siliguri Gangtok Agra Lei 46:08 46 minutes, 8 seconds they have been all franchisee deals and uh the performance has been pretty strong uh the response from the uh local 46:16 46 minutes, 16 seconds partner that we have given the franchisee to has been uh satisfied and the uh you know overall growth in the 46:23 46 minutes, 23 seconds management fee on a rund basis has been upwards of 40 to 50%. uh even though on an absolute basis it is still a small 46:32 46 minutes, 32 seconds portion of our total topline because we have almost 17 50 to 1800 screens on the lease basis asset light which is where 46:40 46 minutes, 40 seconds we partner with the developer where developer contributes anywhere between 40 to 80% of the capex uh again there 46:47 46 minutes, 47 seconds are a few cinemas we have opened in the last one year under that model and we are yet to see one full year of 46:55 46 minutes, 55 seconds operations but so far I think the earliest one that we opened was uh last year uh sometime in the month of April 47:02 47 minutes, 2 seconds and May and which has completed one full year of uh operations and you know the performance has been pretty healthy. uh 47:10 47 minutes, 10 seconds ROC's are in line with what we had estimated at the time of feasibility of those cinemas. As we open more cinemas 47:17 47 minutes, 17 seconds and the asset light approach, we will also learn about how they are you know performing and uh overall uh you know 47:25 47 minutes, 25 seconds response from the uh developer partners there. 47:32 47 minutes, 32 seconds Got it. And on the expansion plan uh 75 screens added this year. Uh what is the plan for F27 in terms of growth additions? Uh will it be around 100 120? 47:43 47 minutes, 43 seconds Apologies if I missed this number earlier. 47:46 47 minutes, 46 seconds Yeah, that's right. Expansion will be continuing to be over 100 screens. Um some will be through this model of FCO 47:54 47 minutes, 54 seconds and asset light. Some will be we will be spending our own money. uh there lot of focus on tier 2 tier three uh sort of 48:02 48 minutes, 2 seconds cities as well with our smart cinema initiative um which is uh uh I think the 48:09 48 minutes, 9 seconds first ones will open by mid July uh but so we're expanding in those smaller towns as well uh and of course big 48:17 48 minutes, 17 seconds cities continue to surprise us because the CBD keeps changing newer malls new shopping centers continue to come in uh you know cities like Bangalore, Bombay, 48:26 48 minutes, 26 seconds Hyderabad uh you Chander, Kolkata, uh Surat so and you know big developers 48:32 48 minutes, 32 seconds like uh Phoenix, Prestige, DLS uh Oro Reality u you know Nexus Malls they 48:40 48 minutes, 40 seconds continue to uh expand into various uh uh regions and various cities. So we are very much their preferred partner uh 48:49 48 minutes, 49 seconds with most of the in fact all of the top developers in the country today. Uh so they are continuing to have shopping centers and having spaces allocated for cinemas. 49:01 49 minutes, 1 second Sure. And on a cape basis on on on the capeex front what would be the average capeex per uh screen on the smart screen model the one that you plan to ramp up in tier two year three. 49:13 49 minutes, 13 seconds Bor would you give the comparison between normal screen and yeah roughly uh you know uh for smart 49:21 49 minutes, 21 seconds screens that we uh want to open up in tier 2 tier three locations uh the offering will be more affordable both in 49:29 49 minutes, 29 seconds terms of capex and you know more cost efficient in terms of operations. So we expect that our per screen capex for a 49:36 49 minutes, 36 seconds smart screen will be at least you know 30 to 40% lower than uh uh mainstream cinema uh in that same location. So 49:45 49 minutes, 45 seconds depending on where we open it'll be about 30 to 40% lower. 49:51 49 minutes, 51 seconds Got it. And uh last question on the net position uh of stellar net reduction over the full year. Uh from here on what is the thought process on broad debt? 49:59 49 minutes, 59 seconds You have a cash balance of about 6 billion gross debt of about 7 and a half. Uh do you plan to pay it gradually while holding on to cash or will there 50:06 50 minutes, 6 seconds be accelerated payments on the gross debt front? U of course as you mentioned dividends could be considered at some point in the future but uh what is the 50:14 50 minutes, 14 seconds intended use of cashier with respect to uh debt? 50:19 50 minutes, 19 seconds I think in the near term we will use it to further bring down our gross debt. 50:22 50 minutes, 22 seconds Our gross debt as of 31st March is around 760 crores and we intend to bring it down to about 500 cr levels and uh in 50:31 50 minutes, 31 seconds the last year we we've prepaid uh a lot of our term loans. We will continue to prepay some of the term loans and some 50:40 50 minutes, 40 seconds uh loans will uh you know with the flux of time will uh get uh you know will get 50:46 50 minutes, 46 seconds reduced. So we we want to bring it down to about 500 cr level levels uh at a gross uh level. 50:55 50 minutes, 55 seconds So then net debt coming down to zero is a possibility by say 1 HF27. 51:02 51 minutes, 2 seconds Yes. Well I would not like to comment on the exact timelines but in you know near term it's uh definitely on the horizon. 51:12 51 minutes, 12 seconds Sure. Thank you so much and all the best. Thank you. Thank you. We have next question from the line now. 51:19 51 minutes, 19 seconds Sora from Samisha Capital. Please go ahead. Hi. 51:23 51 minutes, 23 seconds Uh first of all, congratulations on the great set of numbers. Uh I wanted to understand some unit economics on the 51:30 51 minutes, 30 seconds new model. First of all, for say the focal model, we are not contributing on the KE side. So on the console basis, we 51:38 51 minutes, 38 seconds are not even adding the top line uh revenues in our top line. So what exactly do we combine the P&L the 51:45 51 minutes, 45 seconds management fee and is that on a fixed basis or what is the proportion and secondly same on the asset life 51:52 51 minutes, 52 seconds structure for say they are contributing 50% so do we add the entire into the RU 52:00 52 minutes asset and then what do we book in the P&L so wanted to understand on this part 52:07 52 minutes, 7 seconds sure so on the foco uh uh model we only book the management management fee. We don't uh consolidate the P&L of the 52:16 52 minutes, 16 seconds property. The P&L is retained by the landlord and the management fee you know varies between 10% to 14% of the top 52:24 52 minutes, 24 seconds line of the cinema. uh that's how we record the financials in our books on the asset light model where there is a 52:32 52 minutes, 32 seconds contribution coming from the landlord anywhere between 40% to 80% of the overall cinema capex depend you know 52:40 52 minutes, 40 seconds depending on how much the developer contributes we uh you know uh work out the arrangement of yield on his 52:48 52 minutes, 48 seconds investment uh so the you know the balanced capex which comes to our account which is you know let's say 40 52:56 52 minutes, 56 seconds 50% is something that we capitalize in our books and gets you know recorded as ROU assets and lease liabilities and you 53:03 53 minutes, 3 seconds know the entire P&L is consolidated the yield that we pay is in the form of rentals and appears as a rental expense in our P&L. 53:14 53 minutes, 14 seconds Uh okay perfect. Uh another thing just confirm if I'm right uh on the focus side if you're not uh adding incremental 53:23 53 minutes, 23 seconds payex and getting a fixed topline of their revenue. So this is the way we improve our right going forward right. 53:34 53 minutes, 34 seconds Sorry I missed your last part of the question. Can you repeat it? 53:38 53 minutes, 38 seconds If we are not contributing payex on the focus side and we are getting top line added to our revenue their share and so 53:46 53 minutes, 46 seconds this is the way our improves going forward right. 53:52 53 minutes, 52 seconds Yeah the uh management fee gets recorded in our P&L. So you know if uh uh you 53:59 53 minutes, 59 seconds know let's say this year for example we have added about close to 18 or 19 uh foco screens. So we just get management 54:07 54 minutes, 7 seconds fee in our P&L and incrementally whatever fo we add uh the revenues are recorded there is no cost to it. 54:16 54 minutes, 16 seconds Uh but we do operate so there is some employee cost in there by PDR on these things. No, no, no. So, as I explained earlier, the PNL is with the landlord. 54:28 54 minutes, 28 seconds Yeah. So, we incur no expense on the propos not not capex, not opex. 54:35 54 minutes, 35 seconds Oh, okay. Thank you. Thank you. 54:40 54 minutes, 40 seconds Ladies and gentlemen, this is this will be the last question. I would like to hand the conference over to management for closing comments. 54:52 54 minutes, 52 seconds Thank you all for joining this uh management uh earnings call for and fi 26 and if you have any further questions 55:00 55 minutes you may reach out to me or my colleagues in the investor relations department. 55:04 55 minutes, 4 seconds Thank you once again for joining this call. 55:08 55 minutes, 8 seconds Thanks thanks ladies and gentlemen on behalf of ICI securities that conclude this conference. Thank you for joining us and you may not disconnect lines. Thank you.