PVR Inox Reports Profit In Q2 On Successful Releases

The multiplex chain, PVR Inox, announced a profit of Rs 207.3 crore for the second quarter of fiscal 2024, marking a significant recovery from the Rs 81.6 crore loss in the previous quarter. The resurgence can be attributed to the tremendous success of several movies, including 'Jawan,' 'Jailer,' and 'Gadar 2'.

The company faced a challenging June quarter due to lacklustre performance in Hindi films, a slow recovery in attendance, and reduced cinema advertising revenue. However, the multiplex company turned profitable in Q2 following successful movies at the box office outperforming analyst expectations. During the second quarter, PVR Inox reported a total revenue of Rs 2,019.60 crore, a significant increase from the Rs 1,329.80 crore in Q1FY24.

One of the standout highlights of the quarter was the record-breaking performance of Hindi films. 'Jawan,' featuring Shah Rukh Khan, and 'Gadar 2,' starring Sunny Deol, ranked among the highest-grossing Hindi movies of all time, each grossing over Rs 750 crore and Rs 620 crore, respectively. Mid-budget films such as 'Rocky aur Rani ki Prem Kahani,' 'Oh My God 2,' and 'Dream Girl 2' also performed solidly, with earnings surpassing Rs 150 crore, and 'Fukrey 3,' released towards the end of the quarter, also crossed the Rs 100 crore mark.

In Hollywood, 'Oppenheimer' and 'Mission Impossible: Dead Reckoning Part 1' set an impressive tone, earning over Rs 150 crore and Rs 130 crore in India. 'Barbie' and 'Nun 2' also fared well, each crossing the Rs 50 crore mark. On the regional front, 'Jailer' (Tamil), featuring Rajinikanth, stood out with an impressive box office collection of over Rs 390 crore. Other regional successes, like 'Baipan Bhari Deva' (Marathi) and 'Carry on Jatta 3' (Punjabi), also secured substantial earnings, reaching over Rs 90 crore and Rs 44 crore, respectively.

Looking ahead, PVR Inox is optimistic about its content lineup, which spans various languages, including highly-anticipated Hindi releases like 'Tiger 3,' 'Animal,' 'Sam Bahadur,' 'Yodha,' and 'Dunki'. Hollywood enthusiasts can anticipate films like 'Killers of the Flower Moon,' 'The Marvels,' Taylor Swift's 'The Eras Tour Movie,' 'Napoleon,' 'Wonka,' and 'Aquaman and the Lost Kingdom'. Additionally, regional cinema offers compelling releases such as 'Leo,' 'Tiger Nageswara Rao,' 'Captain Miller,' 'Salaar,' among others.

In terms of key performance indicators, PVR Inox reported its highest-ever footfalls, average ticket price (ATP), and spend per head (SPH) at 4.84 crore, Rs 275, and Rs 136, respectively. This is a significant improvement compared to the June quarter when footfalls were 3.39 crore, ATP was Rs 246, and SPH was Rs 130, all-surpassing analyst expectations.

However, one area where the company struggled was advertising revenue, with Q2 revenue at Rs 117.6 crore, up 31.6% from the previous quarter's Rs 89.3 crore.

Brokerage firm, Prabhudas Lilladher gave a buy rating on the stock with a 12-month target price of Rs 1,862 per share stating that this is the best-ever quarter for the company. The stock was trading with cuts of nearly 1% at Rs 1,756.70 per share as of 2:40 pm.