Big film releases may be deferred due to coronavirus outbreak

As the coronavirus outbreak grips the nation and businesses alike, the Bollywood is also likely to feel the pinch.

The rising Covid-19 cases in India are likely to impact box office collections which may egg the directors and producers on to postpone the releases of their films.

According to a report by brokerage firm Elara Securities Pvt Ltd., as cited by the Livemint, the first quarter of FY21 may see movies being postponed if the situation gets worse.

Also Read: Coronavirus Live Updates: Total patients 28; Kerala reports fresh cases

This could lead to a decline of 12-14% in earnings before interest, tax, depreciation and amortisation for multiplex chains such as INOX Leisure Ltd and PVR Cinemas.

Big-ticket films slated for release in April include director Akshay Kumar- starrer Laxmmi Bomb, Kabir Khan's sports drama '83, Salman Khan's action drama Radhe-Your Most Wanted Bhai, Amitabh Bachchan and Ayushmann Khurrana-starrer Gulabo Sitabo, Kangana Ranaut-starrer Thalaivi and Yash Raj Film Bunty Aur Babli 2.

"Some of the large releases may also be postponed in case cinemas call for a closure in the coming months. We will monitor the number of new cases closely to ascertain the exact impact on footfall in cinemas," said Karan Taurani, research analyst with Elara.

Bollywood which is already reeling under one of its worst quarters witnessed a drop of 11% year-on-year (Y-o-Y) in January and February this year. Meanwhile, the multiplexes actually shutting operations would hinge upon the severity of the situation.

Also Read: Coronavirus update: Who can enter India, who cannot?

Also Read: Shubh Mangal Zyada Saavdhan Day 12: Ayushmann Khurrana's film fares well in second week