PVR Inox hits 52-week low; down 4% as Q4 net loss widens to Rs 333 cr

The management believes that the two major factors that marred the industry in FY23 - underperformance of Hindi films and less number of Hollywood releases, will both ease out in FY24.

Shares of PVR Inox hit a 52-week low of Rs 1,408.50, as they dipped 4 per cent on the BSE in Tuesday’s intra-day trade after the company reported widening of its consolidated net loss to Rs 333 crore for the March quarter (Q4FY23). The multiplex firm had  reported a net loss of Rs 105 crore in the year ago period.

PVR-Inox reported the first quarterly results after the merger. The company has only provided merged company financials.

In Q4FY23, company’s consolidated reported revenue came in at Rs 1,143 crore, up 34 per cent year-on-year (YoY) and down 21 per cent quarter-on-quarter (QoQ) on proforma basis. Reported earnings before interest, taxes, depreciation and amortization (ebitda) stood at 24.5 per cent, against 24.6 per cent in a year ago quarter.

The management said there was considerable volatility in box office quarter on quarter. They believe that the 2 major factors that marred the industry in FY23 - underperformance of Hindi films and less number of Hollywood releases, will both ease out in FY24.

ICICI Securities expects multiplexes to face a challenge till there is consistency in content performance. Near term monitorable, thus, is big ticket content performance recovery, which has seen inconsistencies post Covid. For the medium to long term, key trigger will be synergy benefits (management has guided for EBITDA synergy benefit of Rs 225 crore over 12-24 months), the brokerage firm said in a note.

From the competition perspective, the merged entity has no real competitor and should hence see further strengthening of its position at the cost of single-screen theatres and smaller chains. The recovery in footfalls would remain a crucial determinant of the performance of the combined entity. Synergies should also gradually flow through, to the merged entity.

While filmmakers are attempting to reconcile with the changing preferences of audiences, their acceptance remains key for PVR-Inox to report higher footfalls. That said, we continue to believe that multiplexes remain one of the most preferred options for ‘out of home’ entertainment avenues, analysts at Emkay Global Financial Services had said in sector update.