PVR Inox Share Price Declines Despite Q3 Profit, Revenue Growth

PVR Inox Ltd. saw its share price decline 2.72% on Thursday, following the release of its third-quarter earnings. Despite showing growth in several key financial metrics, the market reacted negatively to the results.

For the third quarter, PVR Inox reported a net profit of Rs 35.9 crore, an increase from Rs 12.8 crore in the same period last year. The company’s revenue rose by 11.1% year-on-year to Rs 1,717 crore, up from Rs 1,546 crore. Ebitda also saw an increase of 11.7%, reaching Rs 528 crore, compared to Rs 472 crore in the previous year. The Ebitda margin slightly improved to 30.7% from 30.6%.

Despite these positive figures, the market’s response was tepid, leading to a 2.72% drop in PVR Inox’s share price.

PVR Inox Ltd. is a leading player in the Indian entertainment industry, known for its extensive network of multiplex cinemas. Formed through the merger of PVR Cinemas and INOX Leisure, the company has established a strong presence across major cities in India.

PVR Inox offers a premium movie-watching experience, including advanced sound and projection systems, luxurious seating, and a wide range of food and beverage options.

Shares of PVR Inox fell as much as 2.72% to Rs 1,101 apiece. It pared losses to trade 1.71% lower at Rs 1,113 apiece, as of 2:16 p.m. This compares to a 0.52% decline in the NSE Nifty 50.

The stock has fallen over 20% in the last 12 months. Total traded volume so far in the day stood at 1.6 times its 30-day average. The relative strength index was at 44.

Out of 22 analysts tracking the company, 15 maintain a 'buy' rating, four recommend a 'hold' and three suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 55%.