Expanding on Capex :
Mathematically, I had already made this clear in my original post; I’m just explaining it more verbally, as a few people have asked in DMs.
- To open 900 screens, the capex requirement from the company’s side will be approximately ~200 crores. (Franchisee’s capex will be ~900crores)
- EBITDA from EPC for 900 screens should be around ~225 crore.
- Franchisee fees (non-refundable) for 900 screens will be approximately ~45 crore.
Hence, the funding required for capex is effectively zero, as it will be fully funded through internal accruals.
Where funds may be required is in working capital for the EPC vertical, which depends on the aggressiveness of capex expansion. Higher capex acceleration will require incremental funding, as investments need to be made in inventory (furniture and electronics) and in receivables from franchisees.
Based on current knowledge, subject to change.