PVR Inox gains 3% on highest-ever weekend footfalls, box-office collection

The company welcomed around 3.36 million guests at its cinemas and earned gross box office revenue of around Rs 100 crore in the Aug 11 - 13 weekend.

Shares of PVR Inox hit a six-month high of Rs 1,687.10, on gaining 3 per cent in Monday’s intra-day trade after the company said it achieved the feat of highest-ever admissions and box office in a single day across its circuit on August 13, 2023. The largest and the most premium cinema exhibitor in India said it has entertained ~1.28 million guests and earned gross box office revenue of around Rs 39.5 crore.

Currently, PVR Inox quotes at its highest level since February 2023. In comparison, the S&P BSE Sensex was down 0.50 per cent at 65,017 at 10:15 AM.
 

The weekend of 11-13th Aug’23 was also the biggest weekend ever in company’s history. The company welcomed ~3.36 million guests at cinemas and earned gross box office revenue of ~ Rs 100 plus crore during the weekend.

These feats were achieved on the back of solid box office performances from the stellar content released last week including ‘Gadar 2’ (Hindi), ‘Jailer’ (Tamil) & ‘OMG2’ (Hindi) and continued success of content released in earlier weeks including ‘Rocky aur Rani ki Prem Kahani’ (Hindi) and ‘Oppenheimer’ (English) which continued their steady performance.

This record setting result validates that consumer enthusiasm for experiencing films in an immersive, larger than life, cinematic environment is as strong as ever, PVR Inox said.

With today’s gain, the market price of PVR Inox has rallied 26 per cent from its 52-week low of Rs 1,336.50 touched on May 17, 2023. It had hit a 52-week high of Rs 2,068 on August 12, 2022.

After the recent success of “Barbenheimer” and MI-7, Bollywood has an interesting pipeline with movies like Jawan and Dream Girl-2 lined up for release in next 2 months. Even regional pipeline is healthy with movies like Bhola Shankar and Salaar gearing up for release in Q2FY24.

Though there are concerns over persistent high volatility in Bollywood genre 1) sustenance in KPIs (ATP/SPH up 2 per cent/10 per cent YoY on proforma basis), 2) expected back ended recovery in ad-revenues (a high margin business) and 3) strategy to penetrate deeper in Southern market (a high footfall geography) is expected to aid growth and margins, analysts at Prabhudas Lilladher said in Q1FY24 result update.