The transaction has resulted in a debt reduction of Rs 120 crore at the subsidiary level. Additionally, the company plans to use Rs 108 crore from the sale proceeds to fully repay its remaining debt, making Cineline India a net debt-free entity. The surplus funds will be directed toward the expansion of MovieMax, the company's fast-growing cinema chain.
Since relaunching MovieMax in 2022, Cineline India has expanded to 77 operational screens, with another 82 screens in the pipeline. Over the past two years, the company has successfully monetized non-core real estate assets worth Rs 351 crore, including the sale of Hyatt Centric Goa for Rs 270 crore, Eternity Mall in Nagpur for Rs 60 crore, and two commercial properties in Mumbai for approximately Rs 21 crore. The proceeds from these transactions have been strategically utilized to repay debt and drive business growth.
Looking ahead, Cineline India has outlined a focused strategy to accelerate the expansion of its film exhibition business while maintaining financial discipline. With debt repayment freeing up Rs 22 crore annually, the company expects to generate steady free cash flow, which will be reinvested in new screen additions. Cineline also plans to adopt a capital-light growth model by partnering with developers for joint investments in new cinema infrastructure. Additionally, the company will expand its footprint using a revenue-sharing model, reducing fixed rental obligations and increasing financial flexibility.
Ashish Kanakia, CEO of Cineline India, stated: "We have successfully completed the sale of our hotel asset for an enterprise valuation of INR 270 Crores, allowing us to fully concentrate on expanding our core film exhibition business. This move will accelerate growth and help expand our market presence through addition of new screens. With debt to be fully repaid, we would strengthen our financial position and generate consistent free cash flow, which will be reinvested to drive business growth. By leveraging innovative strategies such as expanding screens through a Low Revenue Share or profit-sharing model with developer-funded capex, we are well-positioned to capitalize on the anticipated box office revival, unlocking significant upside potential."
Cineline India runs MovieMax Cinemas, a rapidly expanding chain of cinemas, which has made a comeback in 2022. The company has in their portfolio of 77 operational screens across 21
properties in 6 states and another 82 screes tied up.
On a consolidated basis, net profit of Cineline India soared 176.69% to Rs 4.51 crore while net sales rose 21.28% to Rs 63.31 crore in Q3 December 2024 over Q3 December 2023.