PVR Inox to find its comeback role in Q4, says CFO Gaurav Sharma
PVR Inox, India’s largest film exhibitor, is banking on the anticipated success of its lineup of multi-starrer movies, including Singham Again, Bhool Bhulaiyaa 3, and Pushpa 2: The Rule (the Allu Arjun starrer will be released in five languages), to restore profitability.
“Going forward, I think with the recovery in admissions and a very strong lineup of films in the festival season and fourth quarter, we expect footfall and occupancy to improve substantially, which will have a positive impact on profitability,” said Gaurav Sharma, chief financial officer of PVR Inox, in an interview with Business Standard.
The multiplex chain reported a consolidated net loss of Rs 11.8 crore for the quarter ended September, compared with a net profit of Rs 166.3 crore in the same quarter last year. The company’s net loss stood at Rs 179 crore in the April-June quarter.
The company’s consolidated revenue from operations dropped by around 19 per cent to Rs 1,622.1 crore, down from Rs 1,999.9 crore in the same quarter last year.
“Last week, we had Vicky Vidya Ka Woh Wala Video and Jigra performing well at the cinemas,” said Sanjeev Kumar, executive director of PVR Inox, during the earnings call.
The company expects a higher number of Hollywood movies to be released in the ongoing quarter and in 2025 compared to 2023, as last year’s Hollywood releases were disrupted due to the Writers Guild of America strike. The company also expects the return of blockbuster movies next year, according to executives in the earnings call with analysts.
Earlier, the company announced that movie re-releases would become a major part of its business model, which contributed roughly 6 per cent of the company’s second-quarter admissions.
“We are hopeful that the second half (H2) will be much stronger than the first half, and the free cash flow generated from the business in H2 will be used to further reduce the company’s debt levels. The near- to medium-term strategy is to substantially lower overall debt levels,” Sharma added.
The company reduced its net debt by Rs 140.9 crore in the last quarter, bringing its net debt to Rs 1,153.1 crore at the end of September.
The success of Stree 2, which emerged as the highest-grossing Hindi film, was significant to PVR Inox’s performance in the July-September quarter.
“Stree 2 earned about Rs 713 crore in gross box office collection across India, of which almost Rs 278 crore was attributed to PVR Inox. That’s a substantial share of roughly 39 per cent,” said Sharma.
PVR Inox Pictures was also the film distributor for Stree 2, contributing to a 78 per cent increase in revenue from the movie production and distribution segment, which reached Rs 108.5 crore.
Other films like Kalki 2898 AD and Deadpool & Wolverine also majorly contributed to overall revenues, Sharma added.
The company plans to add 110-120 screens this financial year (2024-25/FY25), having already added 71 screens to date. It also plans to shut down 30-35 underperforming screens in H2FY25, primarily located in underperforming malls, Sharma explained.
Currently, the company’s overall screen portfolio includes 1,747 screens in 356 cinemas across 111 cities in India and Sri Lanka, the company said in its results announcement.
First Published: Oct 15 2024 | 10:20 PM IST