PVR INOX’s Ajay Bijli gets only minimum pay of Rs 6.34 cr for FY23 on firm’s losses

India’s largest chain of multiplexes PVR INOX’s Managing Director Ajay Bijli received only a minimum pay of Rs 6.34 crore for FY2022-23 – his lowest in the past five financial years – as the firm reported a loss despite revenues nearly returning to the pre-pandemic levels with the Indian box office seeing almost a 100 per cent recovery in the calendar year 2022 after the pandemic.  

According to its annual report for FY2022-23, Bijli, then the Chairman & Managing Director of PVR, received a fixed pay of Rs 6.34 crore and no variable pay for FY23. This remuneration was per the earlier approved contract from April 1, 2022, to February 5, 2023 – the date on which the PVR and INOX merger became effective.  

The sum is the minimum remuneration to be paid to the director. As per the Companies Act, when a company is into loss or has inadequate profits, it may pay the minimum remuneration, subject to the approval of the shareholders of the company. 

Noting that the company was able to effectively manage the Covid-19 pandemic to a great extent with strong financial resistance under the stewardship of Mr. Ajay Bijli and Mr. Sanjeev Kumar, the report said: “Although the Financial year 2022-23 was a recovery year for the business with revenue nearly returning to the pre-pandemic levels, however, the profitability was affected due to lower footfalls and higher fixed costs. Additionally, exceptional costs pertaining to merger related expenses, asset write-offs in cinemas slated for closure, and deferred tax write-off led to the Company reporting losses for FY 2022-23.”  

PVR INOX Limited posted a total revenue of Rs 3819 crore for the year ended March 2023, while net loss stood at Rs 242.9 crore. This includes nine-month numbers for PVR, while the quarter fourth is combined with INOX. 

In the previous four financial years from FY2018-19 to FY2021-22, Bijli received a pay of Rs 16.26 crore, Rs 13.66 crore, Rs 6.42 crore and Rs 6.42 crore, respectively, the annual report showed.  

Similarly, Sanjeev Kumar, who was then Joint Managing Director of PVR, received Rs 4.38 crore as remuneration for FY2022-23 (from April 1,2022 to February 5, 2023). For the previous four financial years from FY2018-19 to FY2021-22, Kumar received Rs 10.63 crore, Rs 9.84 crore, Rs 4.43 crore and Rs 4.43 crore, respectively.  

The report further explained that although the Indian box office collection in FY23 recovered to almost the same levels as the pre-pandemic period, this recovery was largely driven by increase in ticket prices. Admissions when compared to the pre-pandemic period were lower for the overall exhibition industry by ~13%. (Source: Ormax media).  

“While the revenue for the company also recovered to almost the pre-pandemic levels, the profitability was impacted on account of lower footfalls and higher fixed costs. While the company negotiated Rental and CAM waivers during the pandemic from the majority of landlords and developers, once all restrictions were lifted, the company went back to paying the contracted rent and CAM which primarily caused the increase in fixed costs,” it said.