PVR Inox Q4 Earnings: Net Profit Slips QoQ After Bollywood Films Disappoint

PVR Inox, India’s leading multiplex chain, announced on May 14 that its net loss for the March quarter decreased to Rs 130 crore from Rs 333 crore in the same period last year. However, the company returned to a loss position after two quarters due to the disappointing performance of high-budget Bollywood films at the box office.

The fiscal year 2024 began sluggishly for PVR Inox, recording a net loss of Rs 44.1 crore in the first quarter due to the below-par performance of Hindi films. Slow recovery in foot traffic and a decline in cinema advertising revenue also impacted its financials.

The tables turned in the second quarter as PVR Inox reported a successful period with hits like Shah Rukh Khan’s “Jawan” and Sunny Deol’s “Gadar 2”. However, this momentum waned, leading to a lackluster third quarter where net profit dropped by 20 percent to Rs 12.8 crore due to fewer successful releases and a decrease in box office revenue. This trend persisted into the March quarter, with major releases like “Fighter” failing to meet expectations, earning only Rs 200 crore against a budget of Rs 250 crore.

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Revenue from operations increased by 10 percent to Rs 1,256.4 crore compared to the previous year but fell short of the third quarter’s Rs 1,545.9 crore. Analysts predicted a 22 percent quarter-on-quarter decline in revenue due to poor film performance.

The average ticket price in PVR Inox dropped to Rs 233 in the fourth quarter of FY24 from Rs 239 a year ago, though it was Rs 271 in Q3.

PVR Inox shares traded at Rs 1,299, marking a 1.2 percent decrease on the National Stock Exchange by 14:55 PM on May 14.

The company outlined four strategic priorities to guide its growth strategy from medium to long term. These include enhancing profitability through initiatives like Movie Passport and screening alternate content, reducing costs through renegotiating rentals and organizational restructuring, adopting a ‘Capital Light’ model to decrease capital expenditure, and aiming to become net debt-free in the coming years through measures like real estate asset monetization.

Ajay Bijli, Managing Director of PVR Inox Ltd., emphasised that these strategic priorities aim to redefine growth strategy, focus on cost reduction, and enhance profitability and cash flow.

Source: moneycontrol

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