PVR Inox Q2 Results: Multiplex Chain Swings To Profit ; Margins Expand

PVR Inox Ltd. swings to net profit in the second quarter of this financial year.

The company has posted a consolidated bottom-line of Rs 106 crore in the June-September period, as against loss of Rs 11.8 crore in the same quarter last year, according to its stock exchange notification on Friday.

Revenue increased by 12.4% year-on-year to Rs 1,823 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation rose 27.6% to Rs 1,622 crore. The Ebitda margin expanded to 33.6%.

• Net profit at Rs 106 crore versus loss of Rs 11.8 crore.

• Revenue rises 12.4% to Rs 1,823 crore versus Rs 1,622 crore.

• Ebitda rises 27.6% to Rs 612 crore versus Rs 479 crore.

• Margin expandes at 33.6% versus 29.5%.

The Indian box office grew 15% year-on-year in the first half, driven not by a few mega blockbusters but by a steady and diverse slate of films across languages and scales, the company said in an exchange filing. In the second quarter alone, 12 films crossed the Rs 100 crore mark, taking the first half total to 22 — the highest post-Covid — underscoring the depth and sustainability of box office performance.

In addition the company said that the recent reduction of GST from 12% to 5% on tickets priced at Rs 100 or below has been passed on entirely to customers, making cinema outings more affordable. For instance, Blockbuster Tuesdays, earlier at Rs 99, will now be available at Rs 92.

The company expects the upcoming second half to be strong due to high-quality content across languages.

Shares of PVR Inox closed 0.50% lower at Rs 1,092.60 apiece on the NSE, compared to a 0.49% advance in the benchmark Nifty. The stock has fallen 32.13% in the last 12 months and 16.27% on a year-to-date basis.

Out of 22 analysts tracking the company, 15 have a 'buy' rating on the stock, five recommend 'hold' and two suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 15.7%.