PVR – Loss persists

Multiplex PVR has registered a consolidated net loss of ₹333 crore for the fourth quarter which ended in March 2023. This loss has widened as compared to a net loss of ₹10 crore in the corresponding quarter the previous fiscal.

The company had recorded a profit of ₹16 crore in the preceding December quarter.

The revenue from operations has grown to ₹1143 crore for the March quarter from ₹536 crore on a Year-on-Year basis. 

The operating profit (EBITDA) for the March quarter was computed at ₹285 crore.

The company reported that “Over the course of FY23, our company has witnessed a robust recovery despite the underperformance and volatility of Hindi movies and significantly low releases from Hollywood in the previous year. The exhibition business has witnessed strong growth, driven by the exceptional performance of regional cinema, an increase in ticket prices, and a substantial increase in consumption/spending of F&B by our patrons. While there has been some volatility at the box office over the past few months, we are confident that this trend will settle down over the next two to three quarters” through a BSE filing.

Around 3 crore movie patrons have shown up at PVR Inox cinemas during the March quarter with the average ticket price at ₹239. The Average Food and Beverage spent per patron was computed at ₹119.

During the last fiscal year, PVR & INOX have initiated168 new screens in 30 cinemas. The company aims to open 150-175 additional screens in FY24.

Currently, PVR screen portfolio (including 38 management screens) was calculated at 1,689 screens across 361 cinemas in 115 cities in India and Sri Lanka.

Ajay Bijli, Managing Director, PVR INOX Ltd said that “The year gone by marks the 1st full year of uninhibited operations for the exhibition industry. There was considerable volatility in box office quarter on quarter. We believe that the 2 major factors that marred the industry in FY’23 – underperformance of Hindi films and a smaller number of Hollywood releases, will both ease out in FY’24. The recently culminated merger with INOX will act as a key milestone for the company and the Indian film industry as a whole. The integration process is proceeding smoothly, and we are confident of achieving operational synergies of ₹225 crores over the next 12-24 months”.

The company has made a proposal to raise of funds through issuance of Non-Convertible Debentures for a sum which does not exceed ₹100 crore through one or more tranches which is based a private placement basis and approval of the members.

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