INOX Leisure Ltd (INOXLEISUR) Q4 FY22 Earnings Concall Transcript

INOX Leisure Ltd  (NSE:INOXLEISUR) Q4 FY22 Earnings Concall dated May. 03, 2022

Corporate Participants:

Alok Tandon — Chief Executive Officer

Kailash B. Gupta — Chief Financial Officer

Analysts:

Sanjesh Jain — ICICI Securities — Analyst

Abneesh Roy — Edelweiss Alternative Research — Analyst

Arun Prasath — Spark Capital — Analyst

Jinesh Joshi — Prabhudas Lilladher Pvt Ltd. — Analyst

Kapil Jagasia — Edelweiss Financial Services — Analyst

Pathanjali Srinivasan — Mirabilis Investment Trust — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to INOX Leisure Limited Q4 and Full-Year FY ’22 Earnings Conference Call, hosted by ICICI Securities. [Operator Instructions] I now hand the conference over to Mr Sanjesh Jain,from ICICI Securities. Thank you, and over to you, sir.

Sanjesh Jain — ICICI Securities — Analyst

Thank you. Good afternoon, everyone. Thank you for joining on INOX Leisure Limited Q4 and full year FY ’22 results conference call. We are joined on this call with INOX Leisure Limited represented by Mr. Alok Tandon, CEO; Mr. Kailash Gupta, CFO. I would like to invite Mr. Alok Tandon to initiate the proceeding with his opening remark, post which we will have a Q&A session. Alok sir, can start now?

Alok Tandon — Chief Executive Officer

Yeah. Thank you, Sanjesh, thanks a lot. And good evening everyone. I’m Alok Tandon and with me is my colleague, Mr. Kailash Gupta and we invite all the part — and we thank all the participants to be who are on this call listening to this presentation. Well, our Board has approved the quarterly results for Q4 FY ’22 as well as the full year of FY ’22, and the same has been uploaded on the website of the stock exchanges and the company’s website. Well, we all know the last six to eight quarters have proved that difficulties and adversities can come in any form, and we all know what we all went through, and challenge new preparedness and fundamentals as a strong corporate. The pandemic took its toll on the entire world and none of us was spared. What the pandemic could not do was, as I said earlier, was to shake our resilience and drive to stick to our vision, and stay true to our business philosophies. Our meticulous efforts, combined with our will to survive and succeed and our team’s determination to keep entertaining, the country has helped us in staging a remarkable turnaround.

Q4, and in particular the month of March, saw a lot of lifetime records being broken and for team INOX, setting new benchmarks in customer operations and other business metrics. Movies like Valimai, Bheemla Nayak, Gangubai Kathiawadi, The Kashmir Files, Radhey Shyam and RRR brought crowds to cinemas in boats and helped us rewrite history. The phenomenal end to the year has provided us a marvelous launch pad to step into FY ’23 with a strong belief in our country’s passion for cinema.

I will begin the presentation now and talk about a few key highlights. In FY ’22, we have the highest ever yearly ATP of INR217. In FY ’22, we have the highest ever yearly SPS of INR91. We have a strong liquidity position, and as of 30 April 2022, we had more than INR260 crores in cash and cash equivalents. INOX has added 32 screens in FY ’22, which is the highest in the industry. We grossed the highest monthly GBOC and F&B revenues in the month of March, so that’s March 2022, which I’m talking about. We are the national chain — or the only national chain which is net debt free. We also launched India’s first cinema wallet called INOX INSTApay.

If I look at the Q4 numbers, in Q4 FY ’22 the revenue was INR325 crore as compared to INR119 crore in Q4 FY ’21. EBITDA was at INR21 crore rupees as compared to a negative INR60 crores in Q4 FY ’21. PAT is at negative INR12 crores as compared to negative INR74 crores in Q4 FY ’21. For FY ’22, revenue is at INR706 crores as compared to only INR148 crore in FY ’21. EBITDA is at a negative INR87 crores as compared to a negative INR204 crore in FY ’21. PAT is at a negative INR164 crores as compared to a negative INR257 crores in FY ’21.

Well, if I talk about a few metrics, in Q4 FY ’22, the footfalls are at 110 lakhs as compared to only 34 lakhs in Q4 FY ’21. In Q4 ’22, occupancy is at 24% as compared to 10% in Q4 ’21. ATP is at INR218 as compared to INR172 in the corresponding quarter. SPH is at INR86 as compared to INR78 in Q4 FY ’21. Talking about the full year, which is FY ’22, the footfalls are at 230 lakhs as compared to 38 lakhs in FY ’21. In FY ’22, occupancy is at 19% as compared to only 8% in FY ’21/ ATP is at INR217 as compared to INR170 rupees in FY ’21, and SPH is at INR91 compared to INR77 in FY ’21.

We are glad to announce that in Q4 FY ’22, we have progressively narrowed the gap in NBOC and F&B revenues with the pre-COVID levels, especially in March 2022, we have had the highest GBOC and F&B collection in our history. We have tried our best to keep our fixed costs under control. From March ’22 onwards, business resumes to normalcy, hence expenses have increased. All rent and CAM negotiations are closed and currently, we are paying rent and CAM as per the agreement. We can see from the numbers that on quarter-on-quarter basis, our employee benefit expense, including agency manpower has increased from INR41.9 crores in Q3 FY ’22 to INR47.2 crores in this quarter. This is because business assumed to normalcy from end of February 2022 onwards. Power and Fuel and Repair and Maintenance expenses have increased marginally from INR29.2 crores in Q3 FY ’22 to INR30 crores in this quarter. Our expense towards rent and CAM during Q3 FY ’22 was INR51.3 crores as compared to INR89 crores in Q4 FY ’22. This is because we have started paying rent as per the agreement in majority of our properties. Our other overheads have increased from INR21.7 crore rupees in Q3 FY ’22 to INR26.4 crores in Q4 FY ’22.

In terms of shareholding structure, as on 29th April 2022, FIIs owned about 15.37% of the company, the DIIs owned 24.8%, Promoter and Promoter Group hold 44.04% and the Public and others own 15.71% of the company. The share price as on 29 April 2022 was INR502.25, which gives us a company a market capitalization of INR6,144 crores. As mentioned earlier, we have opened eight properties with approximately 5,400 seats in the full financial year. In Q4 FY ’22, we opened eight screens, three screens in Selvam Square, Vellore, and five screens in S-Mall, Tumakuru. Additionally, we have opened another six screens in AIPL, Gurgaon. on 14 April 2022, which is in this financial year. At present, we are operational in 18 states and 1 union territory, present in 72 cities with 161 properties, 681 screens, and we have approximately 1.53 lakh seats. Based on the agreements already signed, I would like to share that we have signed up to the extent of nearly 117 properties, 240 screens with — sorry 840 screens with 1.53 lakh seats. And once this entire pipeline is fully implemented, we will have 293 properties with 1,592 screens, and 3.2 lakh seats.

In Q4 FY ’22, we had six blockbuster films, namely of Valamai, Bheemla Nayak, Gangubai Kathiawadi, The Kashmir Files, Radhey Shyam and RRR. And we’re delighted to inform you that we have a healthy lineup of movies already waiting to be released. We all know what fantastic numbers KGF Chapter II has done, and it’s only growing. We had great footfalls for Acharya, and we have a good booking for Doctor Strange: In the Multiverse of Madness. We are having high hopes with Jayeshbhai Jordaar, Bhool Bhulaiyaa 2, Top Gun 2: Maverick, Prithviraj and Jurassic World Dominion, just to name a few.

As far as capex is concerned, in FY ’23 we have planned to open 77 screens, and all of the upcoming screens would be funded through internal accruals. I would also like to reiterate that our liquidity position is very strong, and as on 30 April 2022, we have more than INR380 crores including undrawn limit of INR120 crores with us. Alternatively, as I always say, INOX owns six cinema properties and a head office, and as per the market valuation, if required, we can raise close to INR400 crore, by doing a sale leaseback of these properties. As on 30 April 2022, our gross debt was only INR85 crore.

That was a brief about the quarter, which has gone by, and now we can open up for any questions and answers that you have.

Questions and Answers:

Operator

Thank you. [Operator Instructions] The first question is from the line of Abneesh Roy from Edelweiss. Please go ahead.

Abneesh Roy — Edelweiss Alternative Research — Analyst

Yeah, thanks. My first question is on the advertising revenue. Earlier you had said that this stream will be the last to recover after the box office and F&B recovers, and already we are seeing consistently being broken in the box office. So in terms of advertising revenue, how are things versus pre-COVID in terms of mix of the sectors in terms of advertising? And what are the advertisers seeing in terms of say, cost per thousand, or the yield per screen et cetera versus pre-COVID? And there is a lot of pressure in terms of gross margin on most sectors in terms of advertising, so that is a challenge. So if I mix all this versus the first two points, when do you see full normalcy coming back in the advertising revenue if Wave 4 is there?

Alok Tandon — Chief Executive Officer

Well, Abneesh, let me tell you, I hope there is no Wave 4, number one. So we don’t want our cinema operations to be shut again. But let me tell you that slowly advertisers have started coming back. March has been a decent month for us. I can’t say very good but decent. We have some great movies and people wanted to advertise for those movies. And if you see that we have done INR13 crores in the quarter, and let me tell you, substantial of it came from the month of March because January things are just picking up. February things were just heating up because a few movies have started coming. But then March was a blockbuster quarter for us. Even the advertisers wanted to wait and watch and they didn’t want to advertise from the first movie itself. But looking at the footfalls of March and let me tell you April, and things have only improved. I think that advertisers will be back to us sooner than later. Earlier in one of the call, we have said that it could be a matter of three to four quarters but now I’m confident that in about two quarters time, we should be back to normal, where we were prior to the pandemic.

Abneesh Roy — Edelweiss Alternative Research — Analyst

Right. Currently, if I see two sectors which are doing extremely well are hotels and multiplexes. Coming to multiplexes, what we gather is because of very good content pipeline, because of movies is not releasing in the earlier years, you have a very steady stream of movies available, and second, people are still not going for overseas vacation and even in domestic. People are a bit hesitant, they’re not going for very distant domestic vacations also. So one year down the line, when none of these factors — two factors will be there, do you see pre-COVID consumption behavior coming back in terms of occupancy? Or you see that this is more of a structural shift because now South Indian movies are being consumed by North India, so more steady supply more content is available so things may have improved a bit, it will normalize but it will not fully go back to the pre-COVID occupancy levels, for example?

Alok Tandon — Chief Executive Officer

So I think, Abneesh, the content pipeline, as you rightly said, is great. And if I look at all the movies which have released in Q4, we have done extremely well. And I just named about 6 of 7 of them. Going forward, whether it is the Beast of — in Tamil, whether it is KGF Chapter II, whether it’s a Sher Shivraj in Marathi, whether it’s [Indecipherable]. So we have got some good traction, which clearly goes to prove that people come out to see good content, That’s one, and that’s always been the case. And this I think will continue. So this is not because of backlog of the movies, it’s because people are now coming up different genres and different ways of storytelling.

The other advantage, which you rightly said, is that most of the movies are now dubbed in other Indian languages. So hence, what happens is that the audience naturally multiplies. You are able to show a movie across the length and breadth of the country in the language of the choice of the patrons. So that’s another advantage, or I would say tectonic shift, which has taken place in the industry. And then you mentioned about that overseas travel and domestic travel is not taking place. Here, Abneesh, I would really like to beg to differ because I know that all flights are going full whether domestic flights all international flights and the prices are a wire of the airlines. So which goes to prove that people are still going out as well as — now there is no comparison, I can’t say that those people are coming to watch movies, but yes, because of the good content and good pipeline, people are coming to watch movies on a giant screen. We all know that we were tired of sitting at home. We all know that we want to breathe differently, and that’s exactly what today’s cinema goer is doing.

Abneesh Roy — Edelweiss Alternative Research — Analyst

Sure. And last quick question, any update on the merger? Dpecifically on the CCI, I understand on paper you don’t require. But any further insights you have that absolutely this is a done deal from a CCI? Any issue you envisage?

Alok Tandon — Chief Executive Officer

No, nothing at all, nothing has come to us, Abneesh. And where the other status confirmed that we have already submitted the papers to the stock exchanges. And we’ll take it forward once we get a reply from them.

Abneesh Roy — Edelweiss Alternative Research — Analyst

And timelines as of now, no change to what you had mentioned earlier, right? In terms of…

Alok Tandon — Chief Executive Officer

There is no change to that at all.

Abneesh Roy — Edelweiss Alternative Research — Analyst

Okay. Thank you, sir. That’s all from me. Thanks a lot.

Operator

Thank you. The next question is from the line of Arun Prasath from Spark Capital. Please go ahead.

Arun Prasath — Spark Capital — Analyst

Thank you. Thanks for the opportunity. Alok, my question is on similar lines from the first participant. The question is, we’ve had a very similar quarter compared to October, November was a lesser months in the December quarter. December was very good. Again this quarter, Jan, and February which again lackluster due to the lack of content, again March was good. So very similar patterns, very similar strong movie in the last month. But why — and very similar fall, so why if there should be a drop in the revenue on a per screen basis again? Secondly, why there should be an ATP also should be sequentially going down? Apart from seasonality, is there anything that we are missing or any other phenomenon is explaining this drop on a sequential basis?

Alok Tandon — Chief Executive Officer

No, Arun, I don’t think we’re missing anything. But you’re right that December was great. Though, see — remember, we just started opening up in October, November, and hence, people were slow to announce the release of movies. And then we hit another roadblock where a few cities and a few states again were shut down, and slowly, we started reopening again this January and partially in February. So again, all the movies lined up towards mid February and beyond. So that’s the only reason why December did well and March has done exceedingly well. Where ticket prices are concerned, SPH is concerned, I always say that we price ourselves as per the cost structure of the property and the paying propensity of the people over there. So, there is no shift in that. It’s only that these three — these two quarters, Q3 and Q4 have been very well because the content has been good and people wanted to see and enjoy those movies on the large screen.

Arun Prasath — Spark Capital — Analyst

So it is — what I can understand is this — basically Q3 is s seasonally strong quarter and hence its the numbers, both in terms of ATP and ad revenue and [Indecipherable] is better as compared to Q4? Is it what you’re trying to say?

Alok Tandon — Chief Executive Officer

Sorry, could you repeat that please?

Arun Prasath — Spark Capital — Analyst

I’m saying, Q3 is a seasonally, probably, seasonally strong quarter and in terms of spending pattern both from advertisers side and also of course the consumer side. So other than that, I don’t see any — I’m not able to understand why, given the same similar content release pipeline, why the Q4 should be lower as compared to Q3.

Alok Tandon — Chief Executive Officer

Well, Q3 — Q4, if you look at various other aspects, if you look at the advertising part we did approximately in Q3 I remember right, advertising was INR21 crores — INR20 crores. Well, let me tell you, because things have started opening up and then again we were made to shut down in — after December and January. So again the advertisers pulled back. It’s not that it’s the cinemas are not commanding in footfalls and revenues. It is that people just pulled back, and after we started releasing movies again beyond mid of February, people started advertising again. And that’s why we say that Q4 was lower than Q3, but not because of quality of content. It was because states had allowed cinemas to operate in bits and pieces with 50% capacity utilization, 75% capacity utilization. So hence, advertisers took time to come back.

Arun Prasath — Spark Capital — Analyst

But that would also mean…

Kailash B. Gupta — Chief Financial Officer

Arun, this is Kailash, just want to add further to what Alok is saying. You need to remember that the November and December was a festive season, that had added a lot of inventory — or utilization of inventory in the advertisement especially. And during the festive season, of course the off-take or — on account of F&B and ticket prices also added up, which has been, not the case in Jan, Feb, March, especially because the Jan-Feb was completely off and March was working. So — and plus the movie — if you recollect, the movie Spider Man was released in Q3 and that has added a lot of advantage. And I would say English content normally priced in more actually because it was in the — especially in the premium screens. And add upi the 3D charges also. So these are a couple of regions the Q3 was better in terms of ATP in SPH because of the festive season, also added up the advertisement, which was not the case in Q4.

Arun Prasath — Spark Capital — Analyst

Understood. So that means in the first two months of this quarter, your rent payment is also — whether it is full or it is — it was a negotiated amount?

Alok Tandon — Chief Executive Officer

It was partly negotiated, Arun. But in March it was full.

Arun Prasath — Spark Capital — Analyst

So the Mach run rate should continue going forward?

Alok Tandon — Chief Executive Officer

Yes. The March run rate.

Arun Prasath — Spark Capital — Analyst

Sure. Sure. Fine. Now, my second question is on, I think you have added one management property in this quarter, Vellore property. Just wondered — just curious, usually when do you add management properties? Is it a — it’s a decision based on availability of the real estate? How do you decide on that?

Alok Tandon — Chief Executive Officer

Well, when we feel that the property is good and we would like to take it, but the owner feels that he might as well run it, the P&L should be his, we don’t shy away then from taking a management property. So today, if I’m not mistaken, we have about nine properties in our kitty as management properties. These are properties, which we feel will do good but the owner feels that the entire P&L should be his, and we should give the guidance and the expertise to run the property.

Arun Prasath — Spark Capital — Analyst

Okay. So here, there is a — how it is operated? And what is the terms or revenue share? Anything you can share further on that?

Alok Tandon — Chief Executive Officer

Arun, I won’t be able to tell the revenue share, but it varies from property to property.

Arun Prasath — Spark Capital — Analyst

But it is attributed to…

Alok Tandon — Chief Executive Officer

Let me tell you, it’s beneficial for us also. That’s why we go ahead and sign the deal.

Arun Prasath — Spark Capital — Analyst

All right. Thank you very much. That’s it. Thanks.

Operator

Thank you. The next question is from the line of Jinesh Joshi from Prabhudas Lilladher Private Limited. Please go ahead.

Jinesh Joshi — Prabhudas Lilladher Pvt Ltd. — Analyst

Yeah, thanks for the opportunity. Sir, had this question on INSTApay wallet that we launched recently. Can you explain how do we make money out of it?

Alok Tandon — Chief Executive Officer

Well, INSTApay was launched on 30th or 31st of March. It is the stickiness factor which you want to have with our guests, that it’s a wallet, we say, they’ll keep on recharging and they keep on getting points, which can be redeemed at INOX. So apart from making money, it is, I would say, primarily to get guests come to our cinemas for them to earn points on — when they load their wallet to be used either the box office or at the F&B counter. And every time they load monies, there some extra points added to their entire wallet, which can be redeemed again for more tickets and more F&B items. So it is a marketing tool we have to ensure that people come to us and keep on seeing movies with us and spending more on the F&B items.

Jinesh Joshi — Prabhudas Lilladher Pvt Ltd. — Analyst

So basically this is just one kind of a loyalty program, correct?

Alok Tandon — Chief Executive Officer

Well, it’s different than loyalty. Loyalty is where we have a lot of data about the customer, where we ensure that people come and watch a movie of the choice, they come and eat what they want. We publicize that whatever activities we are doing. We have special shows for our loyalty members. We have a premier, we invite our loyalty, customers, but in this case, it’s a closed loop wallet where they keep on adding and it’s a more value for them to have more items purchased from us and more tickets. There’s value for money.

Jinesh Joshi — Prabhudas Lilladher Pvt Ltd. — Analyst

Okay. sir. And secondly if I look at our movie exhibition cost, it was approximately 45.6% in this quarter. So is it fair to assume that we are back to pre-COVID terms as far as distributor share is concerned?

Alok Tandon — Chief Executive Officer

Yes, Yes. Yes, you’re right, Arun — Jinesh, sorry. More or less, we are back to normal.

Jinesh Joshi — Prabhudas Lilladher Pvt Ltd. — Analyst

One last question. In this financial year, we have recorded highest ever ATP and SPH, obviously, backed by some blockbuster content. Now going ahead, obviously in FY ’23 considering there is no fourth wave, we will have some movies which may not be priced at the level at which they were in FY ’22. So, do you believe that from these levels, we are going to see a rise in ATP and SPH in FY ’23?

Alok Tandon — Chief Executive Officer

So Jinesh, we always say that ATP is at the rate of inflation and SPH, we always look at anything between 8% to 10% increase. So I think that this will only go up, and we all know it’s a very cyclic thing. It’s dependent on the movie, it’s dependent how popular it is, it’s dependent on the newness, it depends on the cost structure of the property in the [Indecipherable] propensity which I said earlier. So there’s lot of factors for us to ensure and which make us given the rationale behind a ticket price. So that’s something which we keep on doing, but I’m hopeful it will only go north from here.

Jinesh Joshi — Prabhudas Lilladher Pvt Ltd. — Analyst

Okay, sir. Thank you so much.

Operator

Thank you. The next question is from the line of Sanjesh Jain from ICICI Securities. Please go ahead.

Sanjesh Jain — ICICI Securities — Analyst

Good afternoon, sir. Thanks for taking the question. First on the screening of movie per day. In this quarter, close to 3.3, is what I can work out the number.

Alok Tandon — Chief Executive Officer

Right.

Sanjesh Jain — ICICI Securities — Analyst

And historically, we were at 4.5 to 4.7. Are we hitting that number now as we got into April and all the COVID restriction are behind?

Alok Tandon — Chief Executive Officer

Yes, yes. So all that is behind. So the night curfews have been removed. We can shut down the Rover. Property is starting late in the morning. That is no longer there. So now in April, we are back to what we were pre-COVID for number of shows per day per screen.

Sanjesh Jain — ICICI Securities — Analyst

So that inventory of 65-70 million seats, which we were having earlier, we are hitting that run rate now as we speak in the April?

Alok Tandon — Chief Executive Officer

You’re right, Sanjesh.

Sanjesh Jain — ICICI Securities — Analyst

Got it, got it. And second one is on the number of movies. Now, how are we seeing the pipeline? One is big budget movies and one is total number of movies. How is it look like for say, FY ’23. Are we going back to that 900 to 1,000 movie releases, assuming there is no fresh wave of COVID and it’s completely normal? Do we have that kind of inventory right now, the visibility to show 900 to 1,000 movies a year?

Alok Tandon — Chief Executive Officer

Yes, we have, we have. And let me tell you that this Friday only — this coming Friday, we’ll be having about 20 unique titles. So that’s the content flow which we have. So apart from the mega blockbusters, we have a great pipeline. And I think the patriots spoiled for choice that which movie to watch during the weekend.

Sanjesh Jain — ICICI Securities — Analyst

Okay. Okay. So we have enough pipeline in the visibility in terms of no — reaching that pre-COVID level of footfalls, right?

Alok Tandon — Chief Executive Officer

Absolutely right. The facility is there, content is there, on paper they are great movies. The advantage is that now various movies are dubbed in different Indian languages, so the market increases, so all those things are very positive.

Sanjesh Jain — ICICI Securities — Analyst

Thank you. Thanks. One question, probably a repetition from the earlier, but still not clear. Why our AP — ATP is down quarter-on-quarter? Now, I understand we had a Hollywood movie in a 3D, we also had a RRR which was in a 3D, probably doing much higher box office collection than the Spider Man one, and most of the movie — and the footfalls were again 11 million. And help us understand what was the occupancy for the Q3 in the premium end of the format versus what it was for this quarter. Probably that may help us understand the fall in the ATP and SPH.

Alok Tandon — Chief Executive Officer

So Sanjesh, here the thing is that Q3 was a very festive quarter. We had Dussehra, we had Diwali, we had Christmas, and hence we were able to price the tickets very high and that was the reason why Q3, and as Kailash said, with a few 3D movies also, we were able to command a higher ticket price. So whether it was Pushpa, Spider Man No way home, Suryavanshi, Annaatthe, 83, all did exceedingly well in Q3, there was a superior content. And also, there were lots of movies which could pull in the crowd. Where Q4 was concerned, we had blockbusters also. But then there were movies like Kashmir Files, Radhey Shyam and others which were not in 3D, maybe RRR was. But what I would say that pulled down the ATP in Q4, was that movies started coming only after mid February and some of the movies did very well down south. And in a few states down south, there is a price cap. And that came into play. So whether it was KGF II or RRR, where it was Andhra Pradesh or Tamil Nadu, we have some price caps. Vallami, I can think of doing very well in this quarter, Bheemla Nayak in Telugu doing very well in this quarter. Radhey Shyam, again a movie which was primarily in Telugu and Tamil doing well. But all of these movies had a price restriction and hence that’s the reason why the ATP of Q4 was lower than Q3.

Sanjesh Jain — ICICI Securities — Analyst

Got it, got it. On the south-based dubbed movie, it looks like there is a broader acceptance now on the dubbed movies even in the Hindi side. How are the ATPs for these movies? Are they equivalent to the Hindi movies or that’s still at a discount and there is a headroom to increase the ATPs for these movies in the Hindi belt?

Alok Tandon — Chief Executive Officer

Well, the ATP is as — see, again I always say that it’s got nothing to do with language. ATP has to do with the newness of the movie, with the demand of a picture and how will we think it will run at a certain price point. So for RRR and KGF, we had blockbuster pricing or what we would have had for a Hindi movie. I think they were higher than blockbuster also. So that’s the ticket price these movies commanded. So it’s got nothing to do with language, it’s only to do with the pull and the excitement or the buzz which is there on the movie, that we do our pricing on. And they were such great movies, RRR and KGF that people did not mind paying higher than our blockbuster pricing also.

Sanjesh Jain — ICICI Securities — Analyst

Just to add on to it, then how to look at ATP? Then that makes ATP primarily cyclical, right? It depends on the kind of movie which get released and how it is priced. Then how to look at ATP when we talked about inflation-led growth in the ATP? This is also significantly dependent on how the constant release has happened for that year, right?

Alok Tandon — Chief Executive Officer

Yes, absolutely. So see, it depends. There’ll be some blockbuster movies, there’ll be mega blockbuster movies, there’ll be regular movies. And ATP, I always say, increases — we will always increase it at the rate of inflation. I was talking about blockbuster rates earlier to your earlier question, where I’d named a few movies like RRR and KGF. Let me tell you, Kashmir Files did amazing footfalls, did great numbers, but there ticket price was an average ticket price, it was not a mega blockbuster pricing we did. So it all depends on the movie Sanjesh. But confidently I can say, and which we keep on seeing quarter-on-quarter and year-on-year, the ticket prices will rate at the rate of inflation. And there are some great Fridays, there are some very average Fridays and there are some bad Fridays. But that does not mean that our ticket prices will go down at the end of the year. I think they will only head north.

Sanjesh Jain — ICICI Securities — Analyst

Thanks, thanks. Just one clarification on that eight-week window on OTT. You said that the window which we shrunk for the four-week was supposed to end at March ’22. That’s — that stands there right? From April onwards all the releases will have the eight-week window for OTT releases, right?

Alok Tandon — Chief Executive Officer

Well, may or may not because see we all know that — again, I’m saying January and February were wash outs. People could not release picture in January and February. So that’s been extended by a bit. But let me tell you, maybe in a month or two or beyond that all films will have an eight-week window.

Sanjesh Jain — ICICI Securities — Analyst

Okay. For the movies which got released in April, the peak window is still not applicable, right? It doesn’t [Speech Overlap] right?

Alok Tandon — Chief Executive Officer

It’s not. So that we have put — see again, remember one thing, when cinemas do well, we do well. And here, it’s not only exhibition, we are talking about the entire Indian film industry. We all have to grow together, Sanjesh, we all have to make money together. So, we said that, especially INOX, I know that we have deferred it. We said that we will discuss this in a month or two and then we will request our partners that it should then go back to the eight-week window.

Sanjesh Jain — ICICI Securities — Analyst

Okay. One question on the bookkeeping. Can you just help us understand what was our March total cost versus March of a normal year? So that will help us understand how much cost saving we had achieved with all the efficiency drive in the COVID which we have done.

Kailash B. Gupta — Chief Financial Officer

So Sanjesh, see March, fixed cost, which was — used to be INR80 crores per month pre COVID, we are close to now INR76 crore, INR77 crore in the month of March. But this will again go higher in the month of April onwards because now it is — all the cinemas are running with a full capacity. So electricity and manpower are going up and we are building it slowly and gradually, consciously, because all these things were not built in the month of March because — fortunately, because we had a bad example — I mean bad January and February, so we decided to gradually build it. And now we are reaching to the stage where all the manpower and electricity costs are coming to the full fledged the…

Sanjesh Jain — ICICI Securities — Analyst

So we will be hitting the same cost run rate of INR82 crores which we had [Speech Overlap]

Kailash B. Gupta — Chief Financial Officer

Yeah. So, I’ll tell you, we will be having the — if you ask me the fixed cost structure, the answer is yes, we will reach to the same cost number because the number of screens on the property has also gone up during the COVID.

Sanjesh Jain — ICICI Securities — Analyst

Correct. So we have maintained the cost while the screen count has gone up. To that extent there is a savings is what you are saying.

Alok Tandon — Chief Executive Officer

Absolutely.

Kailash B. Gupta — Chief Financial Officer

Of course, of course.

Sanjesh Jain — ICICI Securities — Analyst

Yeah, that’s it from my side. Thank you, and best of luck.

Alok Tandon — Chief Executive Officer

Thank you, Sanjesh.

Operator

Thank you. The next question comes from the line of Kapil Jagasia from Edelweiss Financial Services. Please go ahead.

Kapil Jagasia — Edelweiss Financial Services — Analyst

Thank you for taking my question, and congratulations for the very good quarter.

Operator

Sorry to interrupt, Mr. Jagasia, we are not able to hear you clearly.

Kapil Jagasia — Edelweiss Financial Services — Analyst

Now it is better?

Operator

Much better, thank you.

Kapil Jagasia — Edelweiss Financial Services — Analyst

Sir, my first question is like, most of the FMCG players that we are witnessing this quarter, probably even in the last quarter, they are cutting down on the media spend citing this commodity inflation. And most of the advertisers or multiplexesre are these FMCs loss. So, would your confidence of advertising revenues reviving in the next two quarters, isn’t that too optimistic, your take on this?

Alok Tandon — Chief Executive Officer

Kapil, I don’t think. Well, that’s why I said that January, February people did not and March they started coming back. April, they have. So looking at the trend, I think that in two quarters, we should be back to pre-COVID levels. FMCGs, automobiles, various other sectors who advertise with us, we have got the annual clients, we’ve got some regional clients also. So now — again, this is all assumption, but I’m very hopeful that after two quarters, we’ll be back to normal.

Kapil Jagasia — Edelweiss Financial Services — Analyst

Okay. Okay, thanks. And my next question is, earlier I believe, there used to be around 4% to 5% increase in footfalls on an annual basis. But now with this emergence of OTT and also some small budget movies being shifted over there or directly being released on OTT platforms, what should be the growth in footfalls going forward that we should be taking for our models?

Alok Tandon — Chief Executive Officer

So. Kapil, very difficult to say. You are right that OTT is there, and I’ve always said that it complements each other. They will be there. It’s not that we can wish away that OTT is not there, but it all depends on content. We have seen what happened with RRR and KGF II. These names were said six or seven times in this call. They have brought people back to the cinemas. People want to see full action movies on the cinema. We are seeing some great traction, great booking for Doctor Strange, which is coming this Friday. So these are movies which can’t be enjoyed in the confines of your house, however large television, you may have. So, cinema watching is not going anywhere. Footfalls will keep on increasing as they’ve increased over a period of time, and again, let me also tell you, which I talked about is, that [Indecipherable] our guests. So today, I know that if the Marvel movie or a Bond movie or any other movie, people like to watch it in two or three different formats. So, that’s why we got an IMAX with us, we have got an MX-40, we have got LED, we have got Insignia, you name a format, ScreenX where you see the movie on the side was also. So, it is nothing to just get in more footfall and to encourage our guests to come out and watch a movie with great projection and uncompressed sound and that will continue happening, Kapil, quarter-on-quarter and year-on-year.

Kapil Jagasia — Edelweiss Financial Services — Analyst

Thank you. Thank you for such an insightful answer. And, sir, one related question — kind of related question. So off late these regional movies are working quite well this quarter, we had seen in earlier also. And so, on the OTT platforms some of these Korean movies or rather Korean web series have done well. So, are you sensing some Korean movies which are really popular being offered in a multiplexes here is in future?

Alok Tandon — Chief Executive Officer

I don’t know, I’ll have to ask our programing team. But yes, when you talk Korean, it rings a bell that we showed — the fact that — the K-Pop, BTS on our screens. We’ve shown a few K-Pop, I would say, concerts, again on the screens and we have had a houseful shows. So, two weeks back, we showed something called 17, and 17 I think I was too old for that but all youngsters went and saw it and it was a houseful show we had. It was a K-Pop movie and — but where you’re talking about Korean films, let me get back to you after I speak with the programing team. But, yes, I remember there was a Korean movie which did very, very well ages back. Parasites. And we all loved watching it. So maybe there a few more of that genre and — so let me get back to you on this after we discuss with the programing team.

Kapil Jagasia — Edelweiss Financial Services — Analyst

Right, right. Thank you. Thank you for all the answers. Thank you so much. All the best.

Operator

Thank you. [Operator Instructions] The next question is from the line of Pathanjali Srinivasan from Mirabilis. Please go ahead.

Pathanjali Srinivasan — Mirabilis Investment Trust — Analyst

Sir, I’m just trying to understand about our distributors and our agreement with respect to the new movie, because I believe during this quarter, we had a very — big budget movie is getting released and how does it limit us with respect to giving more shows to a particular movie or reducing shows for a movie that is not doing well?

Alok Tandon — Chief Executive Officer

So Srinivas, let’s talk into this quarter. This is the job of our programing team where they discuss the terms with various producers and discuss the number of shows we will give them. So this has nothing to do with the Q4 which we’re talking about. That, I think the bread and butter of the programing team that how they negotiate and how many shows of a movie they give. So that’s a standard thing where they keep on doing quarter-on-quarter, year-on-year.

Pathanjali Srinivasan — Mirabilis Investment Trust — Analyst

No, so, I just wanted to understand what is our flexibility with respect to these agreements?

Alok Tandon — Chief Executive Officer

What’s the…?

Pathanjali Srinivasan — Mirabilis Investment Trust — Analyst

Flexibility with respect to these agreements.

Alok Tandon — Chief Executive Officer

No. So, that depends on — again, not one agreement is standard. And we have various agreements with various distributors, so they all vary week-on-week. It’s not that one thing fits all. So what the programing team ties with one distributor may not be the same thing with the other distributors. So there’s a lot of flexibility from both sides. There are some which are rigid, so it depends on which agreement are talking about. And I can talk about my chain but all decisions are taken together with the distributor and then we decide on the movie, that where it’s playing, what’s happening, number of shows all that.

Pathanjali Srinivasan — Mirabilis Investment Trust — Analyst

Okay. Sir, and with respect to the occupancy, I believe, March and April would have been much better compared to the previous month. Can you give us some rough numbers on what is the occupancy level for April?

Alok Tandon — Chief Executive Officer

Well, I can give you for April, because that’s the current quarter which is running, and I don’t want to just predict and give you a number which is not in public domain. But let me tell you that the footfalls are great and KGF Chapter II has done amazingly well. And we all know that what the gross box office collection this movie has garnered.

Pathanjali Srinivasan — Mirabilis Investment Trust — Analyst

Okay. Yeah, thanks.

Operator

Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to the management for their closing comments.

Alok Tandon — Chief Executive Officer

Well, thank you all for taking interest in our company, and be rest assured that with the pipelines that we have just talked about, I think that FY ’23 will be a great year for Indian cinema. Thanks a lot, and thank you.

Operator

[Operator Closing Remarks]