PVR Ltd. clocked its first profit in two years as higher disposable income increased consumer spending on food and beverages, according to Chief Financial Officer, Nitin Sood.
"When someone takes the decision to go out for the big screen experience, they're going all out. They're spending a lot more," Sood told BQ Prime's Niraj Shah.
That phenomena helped the multiplex chain operator to register an average ticket price and spend-per-head at its highest levels of Rs 250 and Rs 134, respectively, during the April-June period.
This was achieved despite occupancy rates lower than the pre-pandemic levels at 33.6% against 37.3% in Q1 FY20. The rise in consumers spending has also partially offset an advertising income that is 32% lower than the pre-pandemic level.
"We're almost at 90% of the pre-pandemic level in terms of theatrical admissions recovery," Sood said. "This has recovered despite strong growth in ticket pricing."
The making of pan-India movies is going to benefit occupancy rates, Sood said. "Producers and directors have realised their market isn't just north India or west India, it's the entire country. Films will be mounted on a bigger scale."
With disposable incomes in the country going up, Sood said the business will do exceedingly well in the next 12-month time.
"We have stock exchange approvals," Sood said about its merger with INOX Leisure Ltd. "We're in the process of filing the scheme with the NCLT, which should happen in the next couple of weeks. That typically takes 5-6 months."
Hopefully by Q4, the merger will be complete, he said.
Watch the full conversation here:
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