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PVR Inox, a leading cinema chain, faced a ₹130 crore loss in Q4 of 2024 due to underperforming Bollywood films and a slow recovery in cinema footfalls and ad revenue.
Despite a few successful movies, anticipated blockbusters like 'Fighter' fell short of expectations, impacting the company's financials.
However, PVR Inox plans to bounce back by enhancing profitability through initiatives like Movie Passport and Cinema Lovers Day, cutting costs, and aiming to become debt-free in the future.

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Highly anticipated films failed to meet audience expectations, contributing to PVR Inox's financial downturn

PVR Inox records ₹130cr loss in Q4 amid Bollywood's underperformance

By Mudit Dube

May 14, 2024

05:16 pm

What's the story

India's premier multiplex chain, PVR Inox, disclosed a net loss of ₹130 crore for the March quarter. This figure marks a significant decrease from the ₹333 crore loss reported during the same period last year. The company has slipped back into a loss-making position after two profitable quarters, primarily due to underwhelming box office returns from big-budget Bollywood films. Analysts had previously predicted PVR Inox's Q4 loss to be around ₹118 crore.

Yearly overview

PVR Inox's financial performance in FY 2024

The financial year 2024 started on a slow note for PVR Inox, with a net loss of ₹44.1 crore in Q1, primarily due to the underperformance of Hindi films and sluggish recovery in footfalls and cinema advertising revenue. The company rebounded in Q2 with successful movies like Jawan and Gadar 2. However, this momentum did not sustain into Q3 and Q4, leading to a 20% drop in net profit to ₹12.8 crore in Q3 due to fewer hits.

Box office disappointment

High expectations fall short for PVR Inox

Highly anticipated films like Hrithik Roshan and Deepika Padukone's Fighter failed to meet audience expectations, contributing to PVR Inox's financial downturn. The film, which was projected to earn ₹300 crore, only managed to generate ₹200 crore, falling short of its ₹250 crore budget. Despite these setbacks, PVR Inox reported a revenue increase from operations at ₹1,256.4 crore, up by 10% from ₹1,143.2 crore last year. However, this was lower than the third quarter's revenue of ₹1,545.9 crore.

Market performance

PVR Inox shares and future business strategy

On Tuesday, shares of PVR Inox traded at ₹1,299, down by 1.2% on the National Stock Exchange. Looking ahead, the company has outlined four key strategic priorities for business growth. These include enhancing profitability through initiatives like Movie Passport and Cinema Lovers Day, reducing costs by renegotiating rentals and closing underperforming cinemas, adopting a 'Capital Light' model to cut annual capital expenditure, and aiming to become net debt-free in the coming years.