PVR Inox, an Indian cinema powerhouse, reported a net profit of Rs 166.3 crore in Q2FY24, marking a significant rebound from the Rs 81.6 crore net loss in Q1FY24. The company's revenue for the quarter was Rs 1,999.9 crore, up from Rs 1,304.9 crore in Q1, and its EBITDA also saw an increase to Rs 706.8 core from Rs 497 crore. PVR Inox's margins broadened to 35.3% from the previous quarter's 26.5%, according to a report released on Thursday, October 19, 2023.
The company inaugurated 37 new screens across seven properties and has plans to launch between 150-160 new screens in FY24, funded by internal accruals. Currently, its screen portfolio consists of 1,702 screens in 358 cinemas located in 115 cities in India and Sri Lanka.
This quarter was the best for PVR Inox so far, recording the highest footfalls of 4.84 crore. The average ticket price escalated by 25% to Rs 276 and spending per head surged by 15% to Rs 136. With the company's impressive gross profit margins, noted by InvestingPro Tips, these increases are likely to further enhance their financial performance.
On the same day, PVR Inox announced a record Q3 2021 net profit of ₹207 crore, contrasting with a ₹78 crore net loss in Q3 2020. The merger between PVR and Inox, effective from February 6, was factored into these pro forma results. Revenue surged to ₹2,020 crores, propelled by blockbuster movies and mid-scale films like Rocky Aur Rani Kii Prem Kahani, OMG 2, and Dream Girl 2.
The company operates over 1,700 screens and saw its EBITDA margin expand to 22% from 1.5%, with EBITDA rising to ₹447 crore. Box-office collections reached a record ₹1,336 crore this quarter, fueled by Hindi blockbusters like Shah Rukh Khan's Jawan and Sunny Deol's Gadar 2, along with Rajinikanth's Jailer. Regional and Hollywood films added ₹316 crore and ₹293 crore respectively to the gross collection, with total admissions hitting 48.4 million.
CFO Nitin Sood expressed confidence in the cinema sector's recovery. Ormax Media noted that September releases alone grossed ₹1,353 crore. Despite the company's impressive performance, InvestingPro Tips highlights that the company's revenue growth has been slowing down recently and it is trading at a high EBITDA valuation multiple. Nonetheless, PVR Inox remains a prominent player in the Entertainment industry, and analysts predict the company will be profitable this year. For more insights like these, check out InvestingPro's package of tips here, which offers numerous additional tips for various companies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.