Television company

UFO Moviez expects business to return to pre-pandemic level: Sanjay Gaikwad

Mumbai: As long as there are no new pandemic-induced restrictions that affect business operations, UFO Moviez Founder and Managing Director Sanjau Gaikwad is optimistic that the business will soon get back to the level pre-pandemic.

Addressing shareholders in the annual report, he said that during the year, as a proactive measure amid the second wave, the company raised equity capital to the tune of Rs 96.82 crore. This was primarily done to deal with any unforeseen events due to any new Covid-induced restrictions and to help the core business meet its immediate capital needs as soon as films begin to be released post-pandemic. The fundraising, he says, has given the company a solid financial footing. “We will use these funds prudently for business expansion and any short-term capital needs until our core business returns to normality.”

He noted that the severity of the Covid-19 pandemic and resulting restrictions also continued to affect business in FY22. This, he explained, was due to the absence of big budget releases in the first seven months of FY22, which was led by the closure of cinemas in most states due to the second wave of Covid.

“The release of big budget films only started on November 21 and continued thereafter. However, the generalization of the third wave of Covid-19 at the very beginning of January 22 and the subsequent restrictions resulted in an additional two-month impact on commercial operations, as films did not start to be released again until the end of February 22. Following the two lockdowns due to the second and third waves of Covid-19, the overall recovery in activity remained subdued in FY22. However, thanks to a steady stream of outflows in recent months and with the strong support of moviegoers, box office receipts have rapidly rebounded while advertising receipts are gradually improving. This is expected to continue in FY23, with no further pandemic-induced restrictions.

The general meeting of the company will take place on August 23, 2022.