PVR Inox Q2 Results Preview: PVR Inox profit after tax (PAT) and revenue from operations are likely to see a substantial rise in the second quarter as the multiplex chain may bank on increased footfall on a quarterly basis and eight movies crossing the Rs 100-crore barrier, as per Zee Business research estimates. 

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Analysts expect the company to turn from a loss in the first quarter of the current financial year to a profit in the second quarter.

Research predicts the firm to report a sharp rise in its consolidated PAT, to Rs 155 crore in the quarter under review from the loss of Rs 82 crore in the previous quarter.

The company is also expected to witness a rise of 45.2 per cent in its consolidated revenue from operations, rising to Rs 1,895 crore in Q2FY24 from Rs 1,305 crore in Q1FY24.

The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), an effective method to measure the profitability of a company, is also expected to jump to Rs 385 crore from Rs 353 crore quarter on quarter (QoQ).

The operating margins of the company are expected to be 20.3 per cent for the quarter under review.

The research team has given consolidated QoQ earning estimates for the company because of PVR and Inox's merger in the fourth quarter of the previous financial year. 

What makes PVR Inox's case strong for Q2 earnings? 

The research estimates a bright second quarter for PVR Inox since footfall on a quarterly basis has increased by 38 per cent to a record 4.7 crore.

The other factor that can work in favour of the multiplex chain is that as many as eight movies in the second quarter joined the 100-crore club.

The company saw crowds rushing to the multiplexes to watch blockbusters such as Shah Rukh Khan starrer Jawan, Gadar 2, Rocky and Rani Ki Prem Kahani, Oppenheimer, Barbie, and Rajnikanth starrer Jailer.

The higher occupancy in the second quarter is also expected to trigger a rise of 20 per cent in advertising income. Along with that, operating leverage will also benefit from better occupancy.

Zee Business research estimates for PVR Inox 

PVR Inox (conso) (qoq) (pre-Ind AS)                        
      Q2FY24        Q1FY24     %QOQ  
Rev      1895  CR VS   1305  CR,  UP 45.2%  
EBITDA  385   CR VS   353   CR, UP  9.1%  
Margin  20.3%        VS   27.0%               
PAT       155   CR VS   -82   CR  Loss      
Note: YoY not comparable due to effective merger in Q4FY23