Hindi
Mounting expenses dent bottom line of Inox and Cinemax
MUMBAI: The profitability of multiplexes is being clobbered by rising expenditure as content cost is on the upswing and there is pressure to scale up screens.
Indiantelevision.com looks at two multiplexes to elucidate this reality. Both Inox and Cinemax have announced their fiscal results and the common thread that we find is a dent in the bottom line.
While Inox Leisure Ltd. has seen a gradual rise in annual revenues, profit margins have gradually eroded. Although expenses have increased in all sectors of the business, the chief contributors include film distributors‘ share (at Rs 530 million); property rent and conduction fees (at Rs 264.3 million) and entertainment tax (at Rs 284 million). The corresponding expenditure in these areas last year stood at Rs 449.6 million, Rs 187.7 million and Rs 215.7 million respectively. Inox has also increased its screen tally from 84 to 91 for the year.
The problem area is also on the revenue side, which has slowed down substantially in FY‘09.
A look at the financial figures of Inox reflects the actual picture of a multiplex that is beginning to feel the pinch of a slowdown. The table below shows the numbers from FY‘06 to FY‘09.
| INOX financial figures (in Rs millions) | ||||||||||||||||||||
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The graph below indicates how rising expenditure has eaten into the profits of the company.
Inox is not the only multiplex plagued by rising costs. Cinemax reflects a similar story, though its revenue is also on the upside.
As can be seen from the table and graph below, there is a stark difference in expenditure incurred in FY‘08 and FY‘09. Profit margins have really been compressed.
| Cinemax financial figures (in Rs millions) | ||||||||||||||||
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Ambitious expansion plans by Cinemax may be one of the reasons for the steep rise in expenditure. The number of screens increased from 52 in the last fiscal year to 74 this year, which means an addition of 22 screens in the last year.
Profitably of Cinemax has headed south. The graph below shows how expenditure in the year ending 31 March 2009 towers above the corresponding values of the previous year. Although this has been accompanied by an increase in revenues, profits have taken a hit. Other than the first quarter, the profits in FY‘09 have been lower than their counterparts the previous year across all quarters.
It remains to be seen how the new revenue share deal with the film producers and distributors is going to affect these two multiplexes. That, however, is not going to prove a hurdle for Inox‘s and Cinemax‘s growth plans. Cinemax, for instance, is planning to pump in between Rs 800 million and Rs 1 billion to roll out 50 screens in the current fiscal.
Hindi
New labour codes reshape rules for India’s media & entertainment sector
EY masterclass highlights unified framework, wage redefinition and expanded coverage.
MUMBAI: The new labour codes just rewrote the rulebook for India’s media and entertainment industry because when four old laws become four big codes, even the fine print needs a director’s cut. At the FICCI-EY Media & Entertainment Industry Report launch, EY partners Nirali Goradia and Lakshmi Ranganathan delivered a detailed masterclass on how the labour codes implemented in November 2025 are fundamentally changing the sector. The four consolidated codes Code on Wages, Code on Social Security, Industrial Relations Code, and Occupational Safety, Health and Working Conditions Code have replaced a fragmented set of central and state regulations that existed for decades.
The speakers explained that the new framework brings consistency across all types of establishments and workers. Previously, cine-workers, journalists and other media professionals were governed by separate, narrow laws. Now, definitions have been broadened: “audio-visual worker” now covers everyone involved in film, television, OTT, broadcasting and digital content creation, while “working journalist” extends to digital news platforms.
Key changes include:
- A uniform definition of wages, with at least 50% of total remuneration needing to qualify as wages for calculations like provident fund and gratuity.
- Expanded social security coverage for gig workers, platform workers and project-based freelancers.
- Unified working conditions, safety norms and leave entitlements.
- Simplified compliance through digital filings and a more principle-based approach.
Nirali Goradia emphasised that the codes aim to bring gig workers, freelancers and project-based talent under the social security net, though the exact contribution mechanism for platform workers is still being finalised. She noted that the intent is clear: no worker should be left out of basic protections such as provident fund, ESI, gratuity and safety standards simply because of the nature of their engagement.
Lakshmi Ranganathan highlighted that establishments in the sector must now carefully map their workforce—permanent employees, fixed-term contracts, freelancers and gig workers because different categories attract different obligations. She pointed out that gratuity vesting for journalists remains at three years, but the broader wage definition will impact calculations across the board. Organisations that previously computed contributions on basic salary (often 35-40%) will now need to move to at least 50% of total wages, potentially increasing costs by around 10% on a recurring basis. This change applies retrospectively for gratuity valuation as well, creating immediate balance-sheet implications for many companies.
The panel also discussed how the Occupational Safety, Health and Working Conditions Code has expanded the definition of “manufacturing process” to include digital printing and related activities. This brings more workers under safety and working-condition norms that were previously limited. Additionally, the codes introduce a clearer framework for fixed-term employment contracts, offering organisations flexibility while ensuring such workers receive benefits similar to permanent employees, including gratuity after one year.
One area still evolving is the treatment of platform and gig workers. The Social Security Code recognises this new category, but the exact funding mechanism and contribution structure are awaited. Industry experts expect a dedicated fund where platforms and employers will contribute, from which benefits can be extended to gig workers. Until the schemes are notified, organisations are advised to review their existing contractor and freelancer agreements to assess potential future obligations.
Both partners stressed the need for proactive steps. Companies should:
- Reclassify their workforce based on the new definitions of “employee” and “worker”.
- Review compensation structures to align with the 50 per cent wage threshold.
- Update contracts, especially for project-based and gig engagements.
- Reassess gratuity liabilities and payroll processes.
- Ensure compliance with expanded safety and working-condition requirements.
The speakers noted that while the codes bring much-needed unification and broader coverage, they also demand careful interpretation. The shift from highly prescriptive rules to a more principle-based regime means organisations must build internal frameworks to apply the codes consistently. This is particularly relevant for the media and entertainment sector, where project-based work, freelancers, short-term contracts and gig-style engagements are common.
In an industry that thrives on creativity and agility, the new labour codes are forcing a rewrite of the fine print. What was once a patchwork of rules is now a unified playbook and for media houses, the real plot twist will be how quickly they adapt to keep talent happy, costs manageable and stories flowing. The next few months, as states finalise their rules and schemes are notified, will be critical in determining exactly how this new framework reshapes hiring, compensation and workforce management across the sector.
