Multiplex chain operator PVR INOX reported a consolidated net profit of Rs 166.3 crore for the July-September period on Thursday, as against a net loss of Rs 81.6 crore for the previous three months. That marked the first set of quarterly numbers after an all-stock deal between PVR and INOX to merge their operations and create the country's largest multiplex chain. The merger took effect on February 6, 2023.

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PVR INOX shares continued to struggle below the flatline after the earnings announcement, declining as much as 2.1 per cent to Rs 1,736.2 apiece on BSE. 

The company, which opened 37 new screens in seven cinemas during the three-month period, said the quarterly and half-yearly results were not comparable with earlier periods.

The firm's revenue for the second quarter of the current financial year increased 53.3 per cent on a sequential basis to Rs 1,999.9 crore, according to a regulatory filing.

According to Zee Business research, the company was estimated to report a quarterly net profit of Rs 155 crore and revenue of Rs 1,895 crore. 

"This quarter’s results underscore the immense potential of the Indian cinema industry, reflecting the unsatiated appetite of Indian consumers to watch films across languages on the big screen," said Ajay Bijli, Managing Director, PVR INOX.

The company said its margin for the quarter under review stood at 22.1 per cent, better than analysts' expectations. Zee Business analysts had pegged PVR INOX's quarterly margin at 20.3 per cent.

PVR INOX said that the quarter was its best in terms of revenue, EBITDA and PAT. 

PVR INOX said it made significant progress in terms of merger synergies and was on track to be free cash flow positive for the financial year ending March 2024.

The company said it had been diligently working to realise the full potential of the strategic union. "We are pleased to report that the integration process has been progressing seamlessly, yielding substantial operational efficiencies," it said.

The company registered a jump of 109 per cent in ticket sales, 89 per cent in food and beverage sales, and 41 per cent in ad sales compared with proforma figures from the year-ago period.  

It reduced its net debt by Rs 327.6 crore in the April-September period, according to an investor presentation. 

Blockbuster performances of 'Jawan' and 'Gadar 2' aid PVR INOX profitability 

The biggest highlight of the quarter was the record breaking performance of the Hindi box office, with 'Jawan' and 'Gadar 2' amassing more than Rs 750 crore and Rs 620 crore, respectively, PVR INOX said.

The road ahead

The company remained "highly optimistic" about the content lineup across various languages in the coming months, including Hindi releases like 'Tiger 3', 'Animal', 'Sam Bahadur', 'Yodha' and 'Dunki'.

"Hollywood enthusiasts can look forward to 'Killers of the Flower Moon,' 'The Marvels,' 'Taylor Swift's The Eras Tour Movie,' 'Napoleon,' 'Wonka' and 'Aquaman and 'The Lost Kingdom', it said.

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