Ladies and gentlemen, good day and welcome to PVR INOX Limited Q1 FY 2027 earnings conference call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. I now hand the conference over to Mr. Nirant Dhumal from ICICI Securities. Thank you, and over to you, Mr. Nirant. Good afternoon, everyone, and welcome to PVR INOX Limited Q1 FY 2027 post-results earnings call. The call will start with brief management remarks on the earnings performance, followed by a Q&A session. PVR INOX management will be represented by Mr. Ajay Bijli, Managing Director, Mr. Sanjeev Kumar, Executive Director, Mr. Gaurav Sharma, Chief Financial Officer, and other senior management personnel. Over to you, sir. Yeah. Thanks very much. Good evening, everyone. This is Ajay Bijli. I'd like to welcome you to today's call to discuss the results for the quarter ended June 30th, 2026. The earnings presentation and results were uploaded to our website and the stock exchanges yesterday. I hope you've had a chance to review them. Q1 FY 2027 was a strong start to the year. India's total box office collections grew 20% year-on-year this quarter, with broad-based growth across metros as well as Tier 2 and Tier 3 markets, across a wider set of successful and mid-scale films, and across languages. The strength we are seeing in India is also visible globally. North American box office is running 14% ahead of last year at $4.8 billion for the first half of 2026. Its second-best first-half performance since 2019, reaffirming that theatrical first remains the release model of choice for filmmakers everywhere. The quarter saw strong performances across languages. Hindi cinema held its ground with titles like "Bhooth Bangla," "Cocktail 2," and "Main Vaapas Aaunga," while it was regional and Hollywood content that drove the outperformance. Hollywood found success from non-franchise titles such as "Project Hail Mary," "Michael," and "Obsession." Regional cinema delivered multifold growth on the back of compelling local content such as "Raja Shivaji" in Marathi, "Drishyam 3" in Malayalam, and "Karuppu" in Tamil, amongst others. Our own performance mirrored this momentum. We welcomed 36.6 million guests during the quarter, up 8% year-on-year. Equally encouraging is that guests are spending more with us on every visit, with ATP touching at INR 273, which is up 8%, and SPH at INR 161, up 9%. When footfalls and per-guest spend rise together, it reflects the underlying strength of the cinema-going habit and of our premium offering. This translated into a strong financial performance during the quarter. On an Ind AS 116 adjusted basis, revenues grew 12% year-on-year to INR 1,642 crores, while EBITDA nearly doubled to INR 230 crores at a 14% margin. This margin expansion reflects the benefit of operating leverage and the cost discipline we have sustained for several years. PAT came in at INR 71 crores against a loss of INR 34 crores in Q1 last year. The standout achievement this quarter is on the balance sheet. Three years of sustained free cash flow generation and disciplined capital allocation have taken us to a net cash position of INR 80 crores as of June 30, 2026. This gives us a complete strategic flexibility. We can now fund our growth from our own cash inflows, continue on our capital-light path, and do so without the weight of leverage on our balance sheet. On the growth front, we remain on track to open around 100 screens over the course of the year through a combination of our lease and capitalize models. Looking ahead, the slate for the remainder of the fiscal gives us real confidence. Hindi cinema has some of its biggest titles lined up, "Ramayan: Part One," "King," and "Love & War," among others. Regional cinema continues to deliver exciting content with titles like "Jana Nayakan," "Toxic," and "Jailer 2." Hollywood brings major tentpoles including "Avengers: Doomsday," "Spider-Man: Brand New Day," and "Dune: Part Three," several of which will release in our premium large screen formats. The breadth of this lineup across languages, genres, and budgets is exactly the kind of slate that plays to the strength of our networks. Beyond the films, we continue to build PVR INOX into India's leading out-of-home entertainment destination. Recent live streamings of the IPL and the FIFA World Cup 2026 drew a fabulous response across our network, reaffirming that audiences want to experience marquee sporting moments together on the big screen. This sits alongside our alternate content programming, screening concerts, live events, and curated re-releases, along with premiumization of the in-cinema experience, and an expanding food and beverage ecosystem. The vision is to use our screens, locations, and audience trust to be present in more moments of people's leisure time, not just when a big film releases. We enter the rest of FY 2027 with the strongest balance sheet in our history, a diverse content slate ahead of us, a strong pipeline of new screen openings, and an industry whose growth is broader based than it has been in years. We are confident of building on this momentum. With that, I open the floor for any questions. Thank you. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Abneesh Roy from Nuvama. Please go ahead. Yeah. Thank you and congrats. This is Abneesh Roy from Nuvama. Two questions. Hi, Abneesh. Hi. Two questions. Great revival across all the genres and all the languages. I wanted to understand how concerned are you on no INR 500 crore plus movie in the first two quarters. Is that a good thing that it is well diversity dispersed, and is that happening because now the overall calendar is something better planned? That was an issue earlier. If you could tell us on specific of FIFA, how much was the revenue footfall? Is it a good overall development for us or is it just that it helps from a marketing angle, if there's a lean calendar, it helps? If you could elaborate on that. Yeah. The movies have become diversified, which is very good. I am really not that concerned with the fact that there's no INR 500 crore movie in the first quarter. Second quarter is still running. Only one month has gone, we still have a huge lineup of movies coming like "Badhaai Do," there is "Toxic" coming. You never know where these movies will go. The good thing is that mid-scale movies are doing well and as long as we get our numbers, that's very important and we had "Bhooth Bangla," we had some tailwind of "Jurassic World Rebirth" as well. We had "Main Vaapas Aaunga," which is a mid-scale movie. Hollywood has done incredibly well with "Michael" and "Obsession," which is a small movie Project Hail Mary. In my opening remarks, as I said, these are not franchises. These are brand-new stories, "Obsession" in particular was a small film and it did incredibly well. Of course, regional films, "Raja Shivaji," "Teddy," "Drishyam 3," "Karuppu" in Tamil, all these movies have played out very well. I think for us it's important that the movie should perform. They don't all have to be blockbusters. As I've mentioned earlier also, for us, a blockbuster is not according to the budget, but according to its performance, and the performance has been phenomenal. They're still early days. We still have lots of months left before this fiscal ends. We also have "Ramayana" coming, the first part. We also have "King" coming. We also have "Love & War" coming. A lot of big movies are coming, it's looking good. On FIFA, definitely it's not just a marketing spiel at all and it wasn't filling up any lean period because it came while big films were already playing, yet we got 64,000 people only for the World Cup final. What is absolutely phenomenal about this is that, A, of course, the average ticket price was also reasonable. I think it was close to INR 380 or INR 400. My colleagues on the call can correct that. Also, there was a good SPH plus this happened at 12:30 A.M. 12:30 A.M. up to whatever, 2:00 o'clock, 3:00 o'clock, whichever time the match went. It's really not just a lean period; it's a closed period. Yet people came in. It added to our bottom line. As I said in my opening remarks, I think we are looking at PVR INOX's circuit not just to be movies, of course movies are our mainstay, but also to be a destination for all sorts of out-of-home activities for people to step out for. I think that's a slight pivoting that we're doing by having lots and lots of things, and I think we've paved the way now for sporting events, for musical events, for stand-up comedy shows, and it's quite exciting. Sure. Thanks. My second and last question will be on the balance sheet and way forward. Of course, landmark quarter with net cash levels and clearly balance sheet has never been this stronger in the last many years. I wanted to understand any more asset monetization left either in terms of real estate, et cetera. Second, in terms of asset-light model given now your balance sheet is net cash positive; to better participate in the box office revival, would you like to tweak towards lesser low light asset model given balance sheet issue is resolved? Third, obviously last four, five years stock return has been fairly disappointing. Any medium long-term signal to investors on boosting the investor confidence? Well, that's quite a few questions. Let me just first talk about the asset-light model. We've reached our growth and we've been able to de-leverage the balance sheet only because of the asset-light and FoCO model, and I think that we will continue to do because with the grace of God, we've got a brand now, and sweating of the brand is the ultimate testament to the quality of the brand, which is liked by developers. I think FoCO model and asset-light model definitely does not impede our growth. Our growth, as I said, we are still going to be doing 100 screens. However, whichever pockets where we need to deploy capital, we will be deploying capital. Asset light and FOCO model will not come in on the way of growing by 100, 120 screens a year. Wherever there is a need to deploy capital, we'll definitely do, but we don't have to leverage and borrow for that. That's one thing that I've addressed. What else did you ask me about? Capital allocation. Capital allocation priorities remain focused on driving sustainable growth and the whole focus is on how do we improve our ROCE and ROE and whatever is best to create long-term shareholder value is what we'll be doing. Very appropriate capital allocation to improve these matrices is the most important focus of the company at the moment. Have I missed out on anything else? Any further real estate monetization possible or everything is done? No. Not as yet. Okay. That's all from my side. Thanks a lot. Thank you. The next question is from the line of Harit Kapoor from Investec. Please go ahead. Greetings. This is Harit from Investec. Just two key questions from my end. One was, on ATP, SPH, the growth has been consistently strong, Q1 as well, despite really strong, like a INR 500 crores film as the earlier participant was mentioning. Just wanted to understand, is there an element of price increase, like-to-like price increase here, or is it largely driven by mix because Hollywood has also done well, et cetera, on ATP? Also, on F&B, is it more higher conversion led or higher basket size led, or there's also an element of price increase here? Gautam, would you like to answer this, please? Gautam? Yeah. Am I audible? Yeah. Please. I thought you're the best person to address this. Yeah. Yes. On the SPH side, we've grown by about 9%, and it's largely split between value and volume. Both have grown. We have a series of promotions run to increase the strike rate at our cinemas, along with the fact that we've taken a price hike for a few items. I would say the split would be more in the region of about 70/30, 70% on value and 30% on volume. That's the way the SPH stacks up. What was your first question, please? Similar question on ATP. ATP growth. Yeah. Even on ATP, as you know, we have dynamic pricing, and we manage to now keep a very close eye on the sentiment of how the movie is performing. We have a lot of help from a lot of AI systems where we are able to prompt a certain kind of pricing that we need to follow once the films open up. Bases all of that, and it's not as if that consumers who wish to watch a film at lower pricing are not getting an opportunity. Whether it's a Tuesday, whether it's the morning shows, whether it's the front seat, all of that is getting hugely discounted so that we can get, garner in more footfalls from one end of the bucket, which is technically time-rich, cash poor. On the same end, on a weekend, we tend to capitalize on big movies, fresh movies, and see if we can take up the pricing up on a dynamic manner, and at the same point in time, ensure that the maximum footfalls sort of get to our cinemas. Just to add to that, we also had movies like "Project Hail Mary," "Michael." These movies are all IMAX films. Almost 20% of our circuit is premium screens like IMAX, 4DX, ICE, and ScreenX, and lots of recliners, and Insignia, Director's Cut Luxe. This also, that premium customer, when he comes and he wants to see the movie without compromises, obviously that also takes the ATP up. Got it. The second question was on advertising. What's your prognosis? It's been about five quarters odd that we've seen, or for five or six quarters, we've seen very good growth overall. Footfalls have continued to do well. Last year was overall a good year for us. This year has started off well. As you mentioned, the pipeline also looks good. What's your prognosis on ad revival? Do you think brands need to see a little bit more proof of concept to drive this up in line with what your growth is? Do you believe that there are too many other avenues like platforms, et cetera, where they are needing to spend and hence this will take a little bit more time? Just some thoughts on that would help. Thank you. First and foremost, you need to understand that when we came into play post-COVID, this was one end which literally came down to a zero. Then we had to start all over again. No other media in the country had that kind of revival. In fact, if you look at the revival, the revival of Cinema and PVR INOX revenues from zero to INR 500 crores has been all in last four years. It's not only grown steadily for us, it's also amongst all other media categories, we have technically grown the fastest over the last four years. We are galloping. Yes, it would take another maybe a year before we get to the post-COVID and go ahead of that. Having said that, media sales largely come on wake of big blockbuster films because advertisers tend to buy anticipated films. Movies like Dhurandhar, one and two, and this year specifically, talking about King, Avengers, Cocktail, this Odyssey has garnered some great numbers and there is some big titles which are lined up for Q3 and Q4, where we expect huge amount of advertising to flow in. We are also making some fundamental changes within our offering, where we are getting more conversation with clients around eyeballs rather than film. This is a change that is augmented in the market and would take a few more quarters before media planners and buyers start to understand that vocabulary of media buying within cinema. By and large, I can tell you that cinema advertising, the way it's jumped back, has got its mojo, and we are very certain that very soon this would be outperforming other parameters of the categories. Thank you. Yeah. That's all from me. Thank you very much. Wish you all the best. Thanks. Thank you. The next question is from the line of Umang Mehta from Kotak Securities. Please go ahead. Hi. Thank you and congratulations on a good quarter. My first question was on screens. This quarter we have seen slightly higher closures. Your guidance of 90 to 100 on a full year basis, is it on a gross basis or a net basis? Similarly, again, the mix of asset light seems to be higher than last quarter. Would your CapEx guidance of INR 4 billion for FY 2027 be revised downwards now? That is the first question. Hi, Umang. Gaurav Sharma. On the screens. Yeah We are on track to add about 90 to 100 gross screens. While in the first quarter we did not open any new screens because many of our screens which had completed fit-out were awaiting regulatory license, due to delay of the license receipt, we are expecting a bunched-up opening in quarter 2 and quarter 3. Based on the visibility of screens which are under fit-out, we believe that by end of this fiscal, in this financial year, 90 to 100 is pretty much possible. On the closures, the screens we have closed in the first quarter were all loss-making screens and they had been more than 18 to 20 years old. Bulk of our closures for this financial year have already been done in quarter 1. There will be very few closures for the rest of the year. On a net basis, I think we will be around nearly 80 net screens additions during the financial year 2027. Thank you. On the second question on your CapEx, I think we believe that with a very strong response from the market on capital light and FOCO, I think our CapEx will be slightly lower than the earlier expected number of INR 400 crores for the year. We feel that it will be in the range of around INR 350 crores. We are also prioritizing renovation of a few of our high-value properties. Renovation CapEx share will be slightly higher this year. Overall, it will be in the ballpark of INR 350 crores for the year. Understood. Very helpful. The second question was for Mr. Bijli. I think on the interview yesterday, you mentioned about 6,000 new screens over next five years. Are we seeing a ramp-up beyond FY 2027, say, 2028 onwards? Should we expect an acceleration in screen addition? Yeah. Sorry, I had got disconnected and I'm back now. I said that because we are looking at, I don't know whether Gaurav has already covered that. We're looking at the Tier 2, Tier 3 markets now. Population where anything more than 150,000 people are there, of course, there are other criteria that we've got as well to make sure that the demographic is correct, and they have the spending power to come to our cinemas. I think there are so many cities still, in our view, almost 300 cities in Tier 2 and Tier 3 markets which are still under-serviced. I think we'll be opening our first one very shortly in Muzaffarpur, I think that's the reason why I mentioned that. I think that once we penetrate to these towns and every nook and cranny and bring the PVR INOX experience over there, I think growth will further accelerate. There again, the response that we're getting from the local developers over there is also of a FOCO and CapEx light model, asset light model. Which again, will not be a strain on our capital intensity, but the growth will be, I think, fast-tracked from, it's already there, but it's going to get faster from next year onwards even more. Got it, sir. That's very helpful. Thank you so much, all the best. Thank you. The next question is from the line of Vivekanand S. from Ambit Capital. Please go ahead. Yeah. Hi. Thanks for the opportunity. Since the time of the merger, your screen count has increased by around 100, and most of the new screens have come in south. Right? Your concentration to southern markets has gone up to maybe 34%. Yet, when I look at the footfalls or walk-ins over, let's say, any rolling 12-month period, it's remained practically in the INR 14 crore to INR 15 crore range. I want your take on why the footfalls have remained stable while the screen SKU has increased towards markets with structurally higher occupancy. That is my first question. The second one is, thanks for the color on capital allocation. Just trying to understand if you will be putting in any more money into areas like branded food courts, because you still have a JV with Devyani. Are you going to commit any extra CapEx there? Also, any other areas that you're eyeing, which you mentioned in your opening comments, that you want to be the preferred destination for outdoor events. Is there any CapEx that is earmarked for those areas? Thank you. Your first question was about since the merger; how many screens have we added? I think at the time of merger, Gaurav, please correct me, I think we were about 1,450 or something, roughly. We've added about 300 odd screens. Net addition of screens. Yes. We were about 1,650 screens, and we are at about 1,790 screens today. Yeah. On a net basis, we have added about 150, close to about 120 screens over the course of last four years. Your question is that if you look at pre-COVID, of course, if that's what you're asking, that we were getting about, I think together, about 160 million people to our cinemas, roughly. If you look at the last, the trajectory is in the right direction. 150 million people that we got in the last fiscal is the highest number of admissions we've ever got in terms of our basically post-COVID. It's all inching up. Every year, it's going up because there were very identifiable reasons why suddenly those kinds of numbers that were coming pre-COVID are not coming, and primarily because of the fact that less number of movies were coming, then there was a Hollywood strike that happened in the middle. There were highly identifiable reasons why that kind of Plus, some movies were going directly to OTT. That's all come back now. The windows were four weeks, now they've come back to eight weeks. The consumer has finally, he was always there, but now he's realized that the only best experience to watch a movie is theatrical, not just for big tentpole movies, but also for smaller movies, which we've already seen last year with "Sayara" and all, and now with "Main Vaapas Aaunga" and "Obsession." Even the film fraternity has now decided that first they will come to the cinemas only, and only TV shows are coming to OTT. All these factors played a role in the per-screen occupancies coming down as compared to. Now, all that is behind us now, and we are seeing that the kind of movies which are getting made, the number of INR 100 crore-INR 200 crore bracket of films, INR 200 crore-INR 500 crore bracket movies, INR 500-plus crore bracket movies. Nobody has seen these kinds of numbers pre-COVID. Given all that, I think it's a matter of time that we reach those occupancy levels. However, at the same time, what we've done is that since we are very focused on getting the margins that we were getting pre-COVID, we've really had a very strong control on our costs. Line by line, whether it's utilities, whether it's manpower, whether it's rental, any other, whatever costs are there, even COGS. If you look at our COGS on food and beverage, that's come down. We are saying that even at lesser occupancy levels, even at, say, 27%-28%, we should be able to achieve the margins that we were achieving earlier. The focus is both on the denominator being reduced and the numerator increasing, which is the reason why you see a lot of promotions that Gautam has already mentioned of getting more people in. The trajectory is right. We haven't arrived there, but we are in the right direction and right momentum. That, I hope, answers your first question. The second one is, definitely, we believe we've got 15 million sq ft of space that we are under lease in our cinemas. We believe that we can sweat the asset by beyond just showing movies, and which is the reason why we are showing all these things. Plus, the food court JV is going strong. Devyani is a great partner. Again, we've opened three, but we'll be opening many more are in the pipeline. That again, basically repositions our company as not just a cinema, but also offering something, a pre-ticketed food and beverage offering. We're looking at evaluating other out-of-home entertainment options that either can be done within our cinemas by repurposing certain cinemas or taking maybe some additional space. Which also then become very attractive for the youths, which goes out to the malls and wants to be entertained out of home. There is a conscious effort to have movies definitely as our mainstay but also pivot a little bit into more out-of-home entertainment formats that can stand the test of time. Yeah. Sure, Ajay, thank you. Very helpful. Just two small follow-ups. On the first answer you gave, I'm just trying to understand better in terms of regional occupancy trends, because you've broken up the screen count across five key geographies. Since your business has skewed more to the south, my understanding was that the south audience typically tends to have higher occupancy because love for movies is a lot more in the South, or perhaps craze, a lot more in the South than the rest of the country. Is that still the case? If you could just touch upon, let's say, occupancy trends across the cuts that you make regional as well as the city tier distribution. I think that'll be very helpful. The second follow-up is, as far as those initiatives you gave, is there a budget you have in mind of capital expenditure that you need to undertake in fiscal 2027 and 2028 to make these goals translate into revenues? Thank you. Yeah. India is such a diversified country, which is the reason why the market, we don't go anywhere beyond the Indian market, barring that one cinema that we've got in Sri Lanka. The way PVR has made sure that our screen spread is all across the country, is that we are not depending on one language at any given time. 600 of our screens are already in the South, then we have a fair distribution in West and North and Central and East. This is the beauty of the way our circuit is placed and spread across the country, also the way the content pipeline comes out. Definitely South, the movie-going culture is stronger. That's not the only reason we are growing there. We are also growing there because still the single screen penetration is the highest in the South. Therefore, all over the rest of the country, single screens became lesser and shopping centers and malls came up where PVR INOX put its multiplexes. Now similar opportunities are now coming in South because, as I said, single screen penetration was much more over there. That's a reason why you'd see a skew towards South. It's more due to where the opportunities are available. Otherwise, there's nothing wrong with even the other regions, where if an opportunity comes like we just opened in Delhi, in Elegante Mall, and it's doing phenomenally well. Similarly, we've got a couple of projects with DLF. One in Gurgaon, one we open in Midtown and Moti Nagar, which is doing very well. There's no necessary that it has to be south, but yes, definitely it's a prime market, an under-screen market from multiplex point of view. We have a skew there. That is one part. Even to elaborate a little bit more, developers like Lulu, Prestige, many of their malls, Brigade, we're going to be opening one in a mall in a development called Utopia over there very shortly. Hyderabad has got lots of opportunities. Wherever good opportunities come, we open our cinemas there. As far as capital allocation for these activities is concerned, definitely we have a capital budget. I don't know offhand how much it is. Gaurav, you can tell me. Obviously, we can't run the company without budgeting for any CapEx that we do. Gaurav, can you help me out then? Vivek, I think the overall number of INR 350 crores for the year includes everything, including our investments in the food court joint venture plus the other initiatives. In overall scheme of things, the investments in food court is much lower because it's a less CapEx-intensive business in terms of the assets involved there. Therefore, in overall scheme of things, it's not a very material investment amount. Sorry to interrupt, sir. Your voice is not clear. Can you hear me, Vivek? Yes, sir, you're clear now. Yeah, I was just saying that our overall- Can you repeat the last sentence? Yes. I was just saying that our overall investment in food court business is part of our CapEx outlay for the year of INR 350 crores. Not a very material number from overall scheme of things at a company level. Sure. Thank you, Gaurav, and thanks, Ajay, for the elaborate explanation. All the very best. Thank you. Thank you. The next question is from the line of Kavish Parekh from 360 ONE Capital. Please go ahead. Hi, team. Congratulations on a great set of numbers. A question on the balance sheet front. Thank you. Commendable show on the debt reduction. Free cash flow generation last fiscal was about INR 570 crore, excluding the sale of 4700. What is the target or aspiration you're working with for this fiscal for FCF, considering almost 80% of the screens this year are coming up on the capitalized models? What would be the intended use of the cash? Of course, INR 350 crore-INR 400 crore, INR 350 crore CapEx. Would the company, on top of that, hold on to the cash on the books? Are there any thoughts on rewarding shareholders via buyback? Part of this question was answered earlier but wanted some more color on what parameters or thoughts will be looked into to sort of make a decision on this. Gaurav would like to answer that, please. Gaurav, you're not audible. Kavish, I'll take this question. In the last few years, we have worked hard to bring down the debt levels, we are now sitting at a debt-free balance sheet. I think cash is a very strategic asset for us; we are prioritizing allocating capital towards growth. Also, we want to make sure that any investments with the scale and size of the business that we run today should be value accretive, should be improving our return on capital, return on equity. We are evaluating all options, including growth as well as allocating this capital, which is best for the long-term shareholder value creation. From our perspective, on shareholder returns through the right sort of instruments, we'll share any material updates as and when the board decides when it's appropriate to give more insights on that. Sure. Any target or aspiration that you are working with for the full year in terms of FCF? No, there is no target. The target is to improve return on capital and the business. The immediate target for us is to come back to the pre-COVID levels of ROC that we used to operate at. That's the only target that we are carrying right now. Of course, revenue growth and margin expansion continues to be the focus. ROC expansion is something that we are pretty clear on, and we want to drive that up. Noted. Could you also share some color on unit economics of properties which are operating on either of the two capital-light models, say, properties which have been operating for the last, say, three or four quarters now, some cases? Normally a property takes about 12-18 months to mature. The properties which are opened in FY 2024 and in FY 2025, they saw their full run of operations in FY 2026. Both the vintages of 2024 and 2025 are operating at very healthy margins. I would say better than the company-level margins. We have been very careful in terms of selecting the right locations and also doing the right rental deals. With operating leverage and the cost efficiency, we have been able to drive healthy margins in the new properties that are coming out. Overall, I think the asset-light thing, which we've started in the last 12-18 months, will pan out their maturity for the first set of properties over the course of this financial year. We will share more insights on their performance by the time we'll finish the year. All right. Sure. Thanks for this, and all the very best. Thank you. Thank you. Thank you. The next question is from the line of Jinesh Joshi from PL Capital. Please go ahead. Thanks for the opportunity and congratulations on the balance sheet improvement. Sir, I have two, three small questions. One is with respect to the increase in the online ticketing penetration to about 69% in this quarter, which has led to a surge in the convenience fee income. If you can highlight the reasons behind this surge and whether this is sustainable. Secondly, also, if you can talk a bit about your new digital revenue stream that involves app and web monetization. Basically, how do you make money here? If you can perhaps elaborate a bit on this aspect. Kamal, would you like to answer this, please? Yeah. I will take the second one on web and app monetization. Sure. Yes. The increase in the online penetration, which was hovering at about 63%, 64%, going up to 68%, 69%, plus the increase in admits, plus the increase in average ticket price, all of these factors compounded have resulted in a steep year-on-year growth, as far as the convenience fee 29% growth is concerned. What was your second question? Can you repeat, please? Sir, the app and web monetization revenue stream. Sir, the first question remains unanswered. I would want to know what was the reason for increase in the penetration in this quarter? Well, our content mix often plays a big role, but in addition to that, the marketing programs which are run by PVR and INOX's own digital platforms, our colleagues at BookMyShow and District, our online aggregators. All of us are fairly aggressive when it comes to marketing programs, incentivizing customers to come back more often, giving them compelling reasons in case if they were thinking of buying at the box office, giving them compelling reasons to book it through the online channels and do it as quickly as possible. Those are the other factors which have contributed to this very strong growth in the online penetration. Your question on whether this is sustainable, absolutely. We make every endeavor to ensure that we continue to grow the online penetration. That said, we have to appreciate that we're already near 70% online penetration. There is definitely a factor of diminishing returns as far as the online penetration goes. The rate of growth will definitely slow from here on. With the growth in average ticket price, with the growth in admits, we expect that the overall online revenues from convenience fee will continue to grow for the company. Gautam, you want to take the other one? Yeah. On the web and app monetization. Am I audible? Hello? Yes. Okay. On web and app monetization, we have created certain assets by way of which we are able to offer our clients this unique opportunity to be on our web and app, and advertise their proposition. PVR INOX is now seeking ways to move from a traditional media bucket to a more digital-aligned media bucket. There are a lot of changes that we are doing overall. This is one of that many steps forward. Though overall, these are early days. We've just launched this a month back, and we believe the annualized revenues could be in the line of about INR 2-3 crores. Having said that, this is a start for brands and clients to start engaging with the brand on a digital platform. Hence, it's strategically very important. Got that. Sir, secondly, the ATP of our alternate programming that we have shared in the presentation is at about INR 409, which I think is materially higher than our movie ATP. Can you just talk what is the content cost over here, and how to think about margin? The content cost would vary from program to program. It is the deal that we have with the artist. Sometimes just the duration of the program, the stature of the artist would determine the kind of pricing that we can have. Each artist would come with his own negotiation, so to speak. Somewhere the cost could be as low as 35%, and in some it could be, say, 65%, 70% of the ticket. That's the gamut in which we will be sharing revenues on ATP for alternate program. Got it. First of all, last, a bookkeeping question from my side. Generally, our film hire cost tend to remain in the very steady state band. In this quarter, we have seen about 200 basis points decline on YoY basis on movie cost only. Is there any specific reason that you would want to call out for this decline? There are two things. Film hire costs are terms with producers in terms of sharing of box office revenue. There is no change. The reason you see a decline of film hire cost compared to last year's quarter one is because of the mix of movies and their third and fourth week of run. Like, "Dhurandhar", which was released on 19th of March, in the month of April got played in its third, fourth week, where the film hire terms are lower than first and second week of launch. Also, because there was no mega blockbuster during the quarter, as a result, the bonus payouts were lower as compared to last year when "Raid 2" and "Simmba" were released. That's the reason why it's lower. Overall, on a full year basis, it will be in the range of 45%-45.5%. On F&B costs, I think we continue to focus on controlling our costs, reducing wastage, eliminating spillage using technology. Also the wider F&B offerings now at cinemas are also resulting in higher off-take of F&B food. As a result, our F&B costs has continued to come down year-on-year. Over the course of last two years, every year there has been a reduction in costs. We believe that during this year we will be lower than last year in terms of full year costs for the F&B sales. Got it, sir. Thank you so much, and all the best. Thank you. The next question is from the line of Parag Thakkar from Fort Capital. Please go ahead. Yeah. Am I audible? Hello? Yes. Yeah. First of all, I would like to congratulate the management team for paying back. Thank you. Capital Hello? Yes. For reducing the debt level from peak level of INR 1,450 crore to now net cash of INR 80 crore. Thank you. Excellent achievement, I think. As the other participants also asked, I would still request for a buyback, because I would feel that now that you have net cash and you are going to generate cash flow every quarter, I think it makes sense to do a buyback where it gives a clear signal to investors, and where promoters should not participate. Like recently in Bajaj Auto buyback, promoters did not participate. It gives you a very strong signal as an investor to us that promoters feel the intrinsic value of the stock is much higher. This is my request, sir. Yes. It's noted, as Gaurav answered earlier, that we are evaluating everything just now. The board will decide, and at an appropriate time, we will take a call what needs to be done. As I said, our focus continues to remain on expansion of our margins, improving our ROCE, and taking our occupancy levels up. Correct. Just your own internal assessment of this year's movie pipeline, how does it look? Of course, this quarter, for example, everybody was surprised to see your results. We can see that reaction in the stock price also. What is your assessment of FY 2027 movie pipeline and hence your occupancy? Occupancy is difficult to predict. All I can say is that every year there's always a very big film, couple of very big films that come, and this time it's "Ramayan." It's looking extremely big. Of course, it's going to play across all sorts of cinemas, and it's a story that everybody knows, and it's been executed very well by Prime Focus. "Toxic" is a very big movie which is coming. Also "King" is coming, which is Shah Rukh Khan's movie. Shah Rukh Khan has given three massive hits post-COVID. This also looks very promising. "Love and War" is coming with Vicky Kaushal and Vidya, and both have given more than INR 500 crore movies, Sanjay Leela Bhansali. Hollywood is looking very good. South pipeline is looking excellent, with "Dune 3," "Avengers" coming, "Spider-Man" coming next week. I think there is no issue with the lineup. It's as strong as what we had last year. Even now, this month, Odyssey is playing, which is doing well. Yeah, there's no dearth of films, both in terms of quantity and quality. And sir, in Hollywood, our market is what? Generally, if a Hollywood makes, for example, if Spider-Man makes INR 150 crore, INR 200 crore, what should be the share for PVR logically based on your assessment? Kamal, what is the share of Hollywood now when it comes to big movies and small? For the big films, firstly, on overall basis, it is as high as about 60%. For big films, it can be- 60%? Yes. For big films it can be around 50%, and for mid and smaller films it's as high as 80%. In a lot of films, it's 90%. When it comes to Hollywood films, we play a very critical role in the kind of business Hollywood films see in this country. At the same time, Hollywood films are very important for our overall mix of admissions. Correct. Sir, any plans to do something where we can earn some rental income or some annuity income? Well, we have already 15 million sq ft, out of which some of the areas that we feel are not needed by the cinema business, and excess space, those we are speaking to the developers to give it sub-lease, allowing us to sub-lease. That is one focus area that we've got. Other than that, there is no rental income as such because we're paying rent, but our rent decreases if we also are able to sub-lease some of our areas which are not needed by the cinema operations. Okay. Thanks a lot, sir. Thanks. Yeah. Thank you. Ladies and gentlemen, due to time constraint, we take that as the last question. I now hand the conference over to the management for closing comments. Thank you all for joining us this call. In case of any more questions, feel free to reach out to our investor relations department or write us directly, and wish you all the best. Thank you so much. Thank you. Thanks a lot. Thank you. Thanks. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.