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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
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] Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjesh Jain from ICICI Securities. Thank you, and over to you, sir.
Thanks, Lindsay. 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 Management represented by Mr. Alok Tandon, CEO; Mr. Kailash Gupta, CFO.
I would like to invite Mr. Alok Tandon to initiate the proceedings with his opening remarks. Post which, we will have a Q&A session. Alok, sir, can we start now?
Yes. Thank you, Sanjesh. Thanks a lot, and good evening, everyone. I am Alok Tandon, and with me is my colleague, Mr. Kailash Gupta, and we invite all the -- and we thank all the participants today 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. While we all know the last 6 to 8 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 fundamental 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 also, was to shake our resilience and drive to stick to our vision and stay true to our business philosophies. Our medical 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 saw team INOX setting new benchmarks in customer operations and other business metrics. Movies like Valimai, Bheemla Nayak, Gangubai Kathiawadi, The Kashmir Files, Radhe Shyam and RRR brought crowds to cinemas in hoards and helped us rewrite history. The phenomenal end to the year has provided us a marvelous launchpad 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 had the highest ever yearly ATP of INR 217. In FY '22, we have the highest ever yearly SPH of INR 91. We have strong liquidity position. And as of 30th April 2022, we had more than INR 260 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 INR 325 crores as compared to INR 119 crores in Q4 FY '21. EBITDA at INR 21 crores as compared to a negative INR 60 crores in Q4 FY '21. PAT is at negative INR 12 crores as compared to negative INR 74 crores in Q4 FY '21.
For FY '22, revenue is at INR 706 crores as compared to only INR 148 crore in FY '21. EBITDA is at a negative INR 87 crores as compared to a negative INR 204 crores in FY '21. PAT is at a negative INR 164 crores as compared to a negative INR 257 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 INR 218 as compared to INR 172 in the corresponding quarter. SPH is at INR 86 as compared to INR 78 in Q4 FY '21.
Talking about the full year, which is FY '22, the footfalls are at 230 lakhs as compared to INR 38 lakhs in FY '21. In FY '22, occupancy is at 19% as compared to only 8% in FY '21. ATP is at INR 217 as compared to INR 170 in FY '21. And SPH is at INR 91 compared to INR 77 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 assumed to normalcy. Hence, expenses have increased. All rents 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 a quarter-on-quarter basis, our employee benefit expense including agency manpower has increased from INR 41.9 crores in Q3 FY '22 to INR 47.2 crores in this quarter. This is because business assumed to normalcy from end of February 2022 onwards.
Power & fuel and repair and maintenance expenses have increased marginally from INR 29.2 crores in Q3 FY '22 to INR 30 crores in this quarter. Our expense towards rent and CAM during Q3 FY '22 was INR 51.3 crores as compared to INR 89 crores in Q4 FY '22. This is because we have started paying rent as per agreement in majority of our properties. Our other overheads have increased from INR 21.7 crores in Q3 FY '22 to INR 26.4 crores in Q4 FY '22.
In terms of shareholding structure, as on 29 April 2022, FIIs owned about 15.37% of the company, the DIIs owned 24.88%, Promoter & Promoter Group owned 44.04%, and the public and others own 15.71% of the company. The share price as on 29th April 2022 was INR 502.25, which gives us a company, a market capitalization of INR 6,144 crores.
As mentioned earlier, we have opened 8 properties, 32 screens with approximately 5,400 seats in the full financial year. In Q4 FY '22, we opened 8 screens, 3 screens in Selvam Square, Vellore and 5 screens in S Mall Tumakuru. Additionally, we have opened another 6 screens in AIPL Gurugram on 14th of April 2022, which is in this financial year.
At credit, 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 have 6 blockbuster films, namely Valimai, Bheemla Nayak, Gangubai Kathiawadi, The Kashmir Files, Radhe Shyam and RRR. And we are delighted to inform you that we have a healthy lineup of movies already waiting to be released. We all know what fantastic numbers K.G.F: Chapter 2 has done, and it's only growing. We had great footfalls for Aacharya, and we have a good block-booking -- and 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 for our CapEx is concerned, in FY '23, we had 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 of 30th of April 2022, we have more than INR 380 crores, including undrawn limit of INR 150 crores with us. Alternatively, as I always say, INOX owns 6 cinema properties and a head office. And as for the market valuation, if required, we can raise close to INR 400 crores by doing a sale leaseback of these properties. As on 30th April 2022, our gross debt was only INR 85 crores.
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.
[Operator Instructions] The first question is from the line of Abneesh Roy from Edelweiss.
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 records 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 saying in terms of, say, cost per 1,000 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 2 points, when do you see full normalcy coming back in the advertising revenue, if no wave 4 is there?
Well, let me tell you, I hope there's no wave 4, number one. So we don't want our cinema operation 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 who wanted to advertise for those movies.
And if you see that we have done INR 13 crores in the quarter. And let me tell you, substantial of it came from the month of March. Because January things were 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 that we are in April and things have only improved, I think that advertisers will be back to us sooner than later. Earlier, in one of our calls, we have said that it could be a matter of 3 to 4 quarters. But now I'm confident that in about 2 quarters' time, we should be back to normal where we were prior to the pandemic.
Right. Currently, if I see 2 sectors which are doing extremely well are hotels and multiplexes. Coming to multiplexes, what we gathered is because of very good content pipeline, because of movies 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 1 year down the line, when none of these factors -- 2 factors will be there, do you see pre-COVID consumption behavior coming back, say, 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?
So I think that means the content pipeline, as you rightly said, is great. And if I look at all the movies which have released in Q4, have done extremely well. And I just named out about 6 or 7 of them.
Going forward, whether it is the Beast of -- in Tamil, whether it's K.G.F: Chapter 2, whether it's Shersha Shivaraj ((sic)) [ Sher Shivaraj ] in Marathi, whether it's Runway 34. 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 movies. It's because people have now come off with 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 did you mentioned about that overseas travel and domestic travel is not taking place? Here, Abneesh, I would really like to defer because I know that all flights are going full whether domestic flights or international flights, the rates and the prices are haywire for the airline. So which goes to prove that people are still going out as well as -- now there's 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 cinemagoer is doing.
Sure. And last quick question. Any update on the merger, specifically 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 and such?
No, nothing has all -- nothing has come to us until now, Abneesh. And where the other status are concerned, that we have already submitted papers to the stock exchanges, and we'll take it forward once we get a reply from them.
And time lines as of now, no change to what you had mentioned earlier, right?
There's no change to that at all.
The next question is from the line of Arun Prasath from Spark Capital.
Look, my question is on similar lines on the first participant. The question is you had a very similar quarter compared to Q3. That is October and November was a lackluster months in the December quarter. December was very good. Again, this quarter, Jan and February is again lackluster due to the lack of content and again, March is good. So maybe similar patterns -- very similar patterns, very similar kind of a strong movie in the last month, but why -- and very similar pitfalls. So why there should be a drop in the ad 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 which is explaining this on a sequential basis?
No, I don't think we are 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 for 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 3 -- these 2 quarters, Q3 and Q4 have done very well because the content has been good and people wanted to see and enjoy those movies on the large screen.
So it is -- what I can understand is this basically Q3 is a seasonally strong quarter. And hence, it's the numbers both in terms of ATP and the ad revenue and F&B revenues better as compared to pre-COVID? Is it what you're trying to say?
Sorry, could you repeat that, please?
I'm saying Q3 is a seasonally -- probably seasonally strong quarter in terms of spending pattern both from advertisers' side and also 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.
Well, Q3 -- Q4, if you look at various other aspects, if you look at the advertising part, we did approximately in Q3, if I remember right, advertising was INR 21 crores -- INR 20 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 if the cinemas were 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% of capacity utilization, 75% capacity utilization. So hence advertisers took time to come back.
That would also mean...
Arun, this is Kailash. I just want to add further to what Alok is saying. We need to remember that the November and December were the festive season. And that had a lot of inventory -- utilization of inventory in the advertisement, especially. And during the festive season, of course, the offtake on account of F&B and ticket prices also added up which has been not the case in Jan, Feb, March, especially [Foreign Language] the Jan Feb was completely off and March was working.
So -- and probably, the movie, if you recall -- recollect, the movie Spiderman was released in Q3. And that has added a lot of advantages. Also English content normally priced as -- in more actually because it was only in the -- especially in the premium space and at the price is 3D charges also. So these are a couple of reasons that the Q3 was better in terms of ATP and SPH. And because of the festive season also added up the advertisement, which was not the case in Q4.
Understood. So that means in the first 2 months of this quarter, your rent payment is also, whether it is full or it is -- it was negotiated amount?
Well, it was partly negotiated, Arun. But in March, it was full.
So the March run rate should continue going forward?
Yes, the March run rate.
Okay. My second question is on -- I think you added 1 management property in this quarter, Vellore property. Just wondered -- just curious, usually, when do you add management property? Is it a decision based on availability of the real estate? Or how do you decide on that?
Well, when we feel that the property is good, and we would like to take it, but the owner says 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 9 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 him the guidance and the expertise to run the property.
Okay. So here -- your registry now it is operated on what is the terms for revenue share? Anything you can share further on that?
Arun, I won't be able to tell the revenue share, but it varies from property to property.
But it is attributable to...
It's beneficial for us also that's why we go ahead and sign these deals.
The next question is from the line of Jinesh Joshi from Prabhudas Lilladher Private Limited.
Sir, I have this question on InstaPay wallet that we launched recently. Can you explain how do we make money out of?
Well, InstaPay was launched on 30th or 31st of March. It is a stickiness factor we want to have with our guests, that it's a wallet which they 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 the F&B counter. And every time they load monies, there are 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.
So basically, this is just one kind of a loyalty program, correct?
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 their choice, they come and eat what they want, we publicize that whatever activities we are doing we have special shows for our loyalty members. If 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 more value for them to have more items purchased from us and more tickets. There's value for money for this.
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?
Yes, yes. Yes, you are right, Arun -- or Jinesh, sorry. More or less, yes, we are back to normal.
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?
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, and the pay facility as I said earlier. So there are a lot of factors for us to ensure and which make us govern the rationale behind the ticket price. So that's something which we keep on doing, but hopefully it only go not from here.
The next question is from the line of Sanjesh Jain from ICICI Securities.
First, on the screening of movie per day in this quarter, close to 3.3 is what I can work out the number. And historically, we were at 4.5 to 4.7. So are we hitting that number now as we got into April and all the COVID restrictions are behind?
Yes, yes. So all that is behind. So the night curfews have been removed. We can shut down the rover. Property 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.
So that inventory of 65 million, 70 million seats, which we were having earlier, we are hitting that run right now as we speak in the print, right?
You're right, Sanjesh.
Got it. Got it. And second one is on the number of movies. Now how are we saving the pipeline? One is big budget movies and one is total number of movies. How does it look like for, say, FY '23? Are we going back to the 900, 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 assure 900 to 1,000 movies a year?
Yes, we have. We have. And let me tell you that this Friday only, this coming Friday, we'll be having about 20 unique cycles. So that's the content flow, which we have. So apart from the mega blockbusters, we have a great pipeline. And I think the patrons are spoilt for choice that which movie to watch during the weekend.
Okay. So we have enough pipeline and the visibility in terms of reaching that pre-COVID level of footfalls, right?
Absolutely right. So visibility 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.
One question, probably a repetition from the earlier, but still not clear, why our ATP is down quarter-on-quarter? I understand we had a Hollywood movie in 3D. We also had a [indiscernible] which was in a 3D probably doing much higher box office collection than the Spiderman one. And most of the movie and the footfalls were again 11 million. Can you 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?
So Sanjesh, the other 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, where we were able to command a higher ticket price. So whether it was Pushpa, Spiderman: No Way Home, Sooryavanshi, Annaatthe ,83, Runway already exceedingly well in Q3. There was a superior content. And also, there were lots of movies which could pull in the crowd.
When Q4 is concerned, we had blockbusters also. But then there were movies like Kashmir Files, Radhe Shyam and others which are not in 3D. Maybe RRR was. But what I would say that pulled down the ATP in Q4 was that movie 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 K.G.F. 2 or RRR, where it was Andhra Pradesh or Tamil Nadu we have some price caps. Valimai, Valimai I think of doing very well in this quarter. Bheemla Nayak in Telugu doing very well in this quarter. Radhe 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.
Got it, got. On the South-based dubbed movie, it looks like there is a broader acceptance now on the dubbed movies even in the Hindi belt. How are the ATPs for these movies, are they equivalent to the Hindi movies they're still at a discount, and there is a headroom to increase the ATPs for these movies in the Hindi belt?
Well, the ATP is a -- see, again, I always say that it's what nothing to do with language. ATP has to do with the newness of the movie, with the demand of the picture and how well we think it will run at a certain price point. So for RRR and K.G.F., we had the blockbuster pricing of 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 full and the excitement or the buzz, which is there around the movie that we do our pricing on. And they were such great movies, RRR and K.G.F. that people did not mind paying higher than our blockbuster pricing also.
Just to add on to how to look at ATP, and that makes ATP a sight -- slightly cyclical, right? It depends on the kind of movie which gets released and how it is priced and how to look at ATP? And we talk about inflation led growth in the ATP. This is also significantly dependent on how the content release has happened for that year, right?
Yes, absolutely. So see, it depends. There will be some blockbuster movies, there'll be mega blockbuster movies, there'll be a regular movie. And ATP always increases, we will always increase it at the rate of inflation. I was talking about blockbuster rates earlier to your earlier question, where I named a few movies like RRR and K.G.F. Let me tell you, Kashmir Files did amazing footfall, did great numbers, but there's a ticket price for them, 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 saying quarter-on-quarter and year-on-year, that 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.
Just one clarification on the 8-week window on OTT. You've said that the window which we run for the 4 week, was supposed to end at March '22. That stands here, right? From April onwards, all the releases will have the 8-week window for OTT releases, right?
Well, may or may not because see, we all know that, again, I'm saying January and February were watchouts. 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 2 or beyond that, all films will have an 8-week window.
Okay. For the movies which got released in April, the 8-week windows still not applicable, right? It's just...
It's not. See, again, remember 1 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 discussed this in a month or 2, and then we will request our partners that it should then go back to the 8-week window.
Got it. 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.
So Sanjesh, the March fixed cost, which was used to be INR 82 crore per month pre-COVID, we are close to now INR 76 crores, INR 77 crores 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 the full capacity. So electricity and manpowers 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 -- I mean, January and February, 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 present.
So we will be hitting the same cost run rate of INR 82 crores?
Yes, so I'll tell you we will be having -- if you ask me the fixed cost structure, the answer is yes, we'll reach to the same cost number because the number of screens on the property has also gone up during COVID.
So we have maintained the cost or the screen count has gone up to that extent, there is a savings report?
Absolutely.
The next question is from the line of Kapil Jagasia from Edelweiss Financial Services.
Congratulations for the very good quarter.
Sorry to interrupt, Mr. Jagasia we are not able to hear you clearly.
Now it is better?
Much better.
Sir, my first question is like most of the FMCG players that we are witnessing this quarter are probably even in the last quarter. They are cutting down on the media spend, so inciting this commodity inflation. And like most of the advertisers on multiplexer are these FMCGs. So would you have confidence of advertising revenues reviving in the next 2 quarters? Isn't that too optimistic, your take on this?
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 2 quarters, we should be back to pre-COVID levels. FMCGs, automobile, 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 2 quarters we'll be back to normal.
Okay. Okay. 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, like what should be the growth in footfalls going forward that you should be taking for our models?
So, Kapil, very difficult to say. You're 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 not it depends on content. We have seen what happened with RRR and K.G.F. 2. These names I've said for the sixth or the 7 times 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 and 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 what I talked about is that we covering our guests. So today, I know that it's a Marvel movie or a Bond movie or any other movie, people like to watch it in 2 or 3 different formats.
So that's why we've got an IMAX with us. We have MX4D, we have got LED, we have got Insignia. You name a format, ScreenX, so you'll see the movie on the side walls also. So it is nothing to just get in more footfall. And we 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.
And one related question, kind of related question. So [ off-led ] regional movies are working quite well. This quarter, we had seen in earlier also. And so like on the OTT platform, 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 the multiplexes there in the future?
I don't know. I'll have to ask our programming team. But yes, we do talk about Korean rings a bell that we've shown the -- that K-pop, BTS on our screens. We've shown a few K-pop, I would say, concerts again on our screens, and we have had a houseful shows.
So 2 weeks back, we showed something called Seventeen. Seventeen, I think I was too old for that. But all youngsters went and saw it and it was a houseful shows we have. It was a K-pop movie. And -- but when you're talking about Korean films, let me get back to you after speaking with our programming team.
But yes, I remember there was a Korean movie which did very, very well ages back, Parasite. And we all loved watching it. So maybe there are a few more of that genre. And so let me get back to you on this after we discuss this with the programming team.
[Operator Instructions] The next question is from the line of Pathanjali Srinivasan from Mirabilis.
I'm just trying to understand about our distributors and our agreement with respect to the new movie because I believe during this quarter, like we had a very big budget movies 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's not doing that well?
So Srinivasan, it's not going to do this quarter. This is the job of a programming team, where they discuss the terms with various producers and they discuss the number of shows we will give them. So this has nothing to do with the Q4 which you're talking about, that's I think the bread and butter of the programming team at how they negotiate and how many shows of a movie they give. So that was kind of thing we they keep on doing quarter-on-quarter, year-on-year.
No. So I just want to understand what is our flexibility with respect to these agreements.
What is the?
Flexibility with the respect to these agreement.
No. So that depends on -- again, not 1 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 programming team ties up with 1 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 you're talking about. And I can talk about my chain that all decisions are taken together with the distributor, and then we decide on a movie and the way it's playing what's happening, number of shows, all that.
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?
Well, I can't 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 our public domain. But let me tell you that the footfalls are great and K.G.F: Chapter 2 has done amazingly well. And we all know that what the gross box or escalation this movie has garnered.
Ladies and gentlemen, that is the last question. I now hand the conference over to the management for the closing comments.
Well, thank you all for taking interest in our company and be rest assured that with the pipeline 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.
Ladies and gentlemen, on behalf of ICICI Securities, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.