PVR INOX becomes profitable again, Q2 revenue jumps 191% YoY
PVR INOX, India's largest multiplex chain, has announced a consolidated net profit of Rs. 166.3 crore for the July-September quarter, a major improvement from the previous quarter's net loss of Rs. 81.6 crore. This follows the all-stock merger between PVR Cinemas and INOX. Revenue from operations during Q2 increased by 191% to Rs. 2,000 crore against Rs. 686 crore in the same quarter of 2022. The company also opened 37 new screens in seven cinemas between July and September quarter.
Blockbuster performances boost profitability
The strong Q2 results were fueled by the blockbuster success of Hindi films Jawan and Gadar 2, which raked in over Rs. 750 crore and Rs. 620 crore, respectively. PVR INOX saw a 109% surge in ticket sales, an 89% rise in food and beverage sales, and a 41% increase in ad sales compared to proforma figures from the same period last year. Additionally, the company reduced its net debt by Rs. 327.6 crore between April and September.
Integration process progressing seamlessly
The multiplex chain is making steady progress in merger synergies and aims to achieve positive free cash flow by the end of the financial year in March 2024. PVR INOX reported that the integration process has been smooth, resulting in significant operational efficiencies. The firm's Q2 margin reached 22.1%, surpassing analysts' expectations of 20.3%.
Optimistic about upcoming content line-up
PVR INOX is excited about its upcoming content line-up across various languages, including Hindi releases like Tiger 3, Animal, Sam Bahadur, Yodha, and Dunki. Hollywood fans can look forward to movies such as Killers of the Flower Moon, The Marvels, Taylor Swift's The Eras Tour Movie, Napoleon, Wonka, and Aquaman and The Lost Kingdom.
PVR INOX shares struggle post earnings announcement
Despite the encouraging Q2 results, PVR INOX shares dipped by as much as 2.1% to Rs. 1,735.10 apiece on NSE after the earnings announcement. The company notes that the quarterly and half-yearly results are not directly comparable with previous periods due to the merger.
