By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Sign In
BusinessLogrBusinessLogr
Aa
  • Home Beauty
  • Stocks
  • Finance
  • Business
  • Company
  • Economy
  • Industry
  • Investing
  • Car News
  • Contact Us!
Reading: PVR delivers good show in Q2 but outlook remains uncertain
Share
BusinessLogrBusinessLogr
Aa
Search
  • Home Beauty
  • Stocks
  • Finance
  • Business
  • Company
  • Economy
  • Industry
  • Investing
  • Car News
  • Contact Us!
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
BusinessLogr > Industry > PVR delivers good show in Q2 but outlook remains uncertain
Industry

PVR delivers good show in Q2 but outlook remains uncertain

deep
Last updated: 2015/11/09 at 11:35 AM
deep Published November 9, 2015
Share
3 Min Read
SHARE
Investors would find some comfort as and when movies start performing well in the current quarter, traditionally considered the best. Photo: Hindustan Times

Investors would find some comfort as and when movies start performing well in the current quarter, traditionally considered the best. Photo: Hindustan Times

Shares of multiplex companies—PVR Ltd and Inox Leisure Ltd—have been market favourites, what with investors already sitting on 27-35% gains so far this fiscal year. Both companies celebrated a fabulous June quarter helped by successful performance of movies such as Tanu Weds Manu Returns, Fast & Furious 7, Piku, Avengers and so on. September quarter results were good too, though some may be disappointed that they didn’t turn out even better.

Nevertheless, PVR’s 19% year-on-year consolidated revenue growth to Rs.475 crore is hardly a reason to whine. Revenue growth was helped by strong box-office performance, and good growth from the food and beverage segment. Movies such as Bajrangi Bhaijaan, Baahubali-The Beginning, Welcome Back, Drishyam and Mission Impossible had a good run at the box office. Average ticket price (ATP) for comparable properties increased 4% to Rs.188. Rival Inox Leisure too saw 4% ATP growth to Rs.168. PVR’s and Inox Leisure’s footfalls increased by 14% and 18% to 17.3 million and 12.1 million, respectively. Occupancy rates were better too.

Click here for enlarge

As a result, PVR’s operating profit margin expanded 470 basis points compared with last year to 19% while that of Inox Leisure improved 213 basis points to 15.9%. A basis point is one-hundredth of a percentage point. Understandably, the measure remained sequentially lower. Robust other income helped market leader PVR report net profit of Rs.41 crore against Rs.20.5 crore for Inox Leisure, the second largest company in the sector.

In the days to come, expansion plans will support revenue growth. PVR intends to add 45-50 new screens for the rest of the year and currently operates 477 screens. Inox Leisure plans to add about 42 screens taking the total screens to 435 by year end.

Still, PVR’s shares closed 5% lower than its intra-day high on Tuesday when broader markets were flat. PVR and Inox Leisure trade at 24 times and 20 times, respectively, for next year’s estimated earnings. That’s not cheap.

Sure, going ahead, the content pipeline is strong with releases including Prem Ratan Dhan Payo, Tamasha and Bajirao Mastani lined up. However, the nature of the multiplex business is such that it’s very difficult to predict how successful movies will be.

Considering that September and October haven’t been particularly great, investors are treading on uncertain territory right now. Small wonder Inox Leisure shares have shed 15% since its September quarter results announcement on 23 October. Investors would find some comfort as and when movies start performing well in the current quarter, traditionally considered the best.

The writer does not own shares in the above-mentioned companies.

[“source -livemint”]

You Might Also Like

FedEx Office Expands Same Day Delivery to 1,800 American Cities

What is Visme and How Do I Use It for Business?

Link Building Lessons from the Real Estate Industry

Shamita Shetty: None of my best friends are from the film industry

Google Web Designer HTML5 Tool is Updated

TAGGED: in Q2 but outlook remains, PVR delivers good show, uncertain

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
[mc4wp_form]
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
deep November 9, 2015
Share this Article
Facebook Twitter Email Print
Share
Previous Article Adani Power: tough for investors to keep the faith
Next Article ABB India earnings underline fragile recovery, but new orders jump

Most Viewed Posts

  • 20 Fitness Franchises: Planet Fitness and Beyond
  • Choosing the Right Legal Structure For Your Business
  • bmo harris express loan payment
  • payday loans that work with chime bank
  • 50 Main Street Local Marketing Ideas for the Holidays

Most Viewed Posts

  • 20 Fitness Franchises: Planet Fitness and Beyond
  • Choosing the Right Legal Structure For Your Business
  • bmo harris express loan payment
  • payday loans that work with chime bank
  • 50 Main Street Local Marketing Ideas for the Holidays

Recent Posts

  • The Essence of Public Storage Units
  • Guide to Retirement Planning: Putting Money Into the Future

FOXIZ

© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

[mc4wp_form]
Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?