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PVR: Super Hit Quarter!
What's Buzzing
PVR's strong performance was robust led by strong box office recovery
Context
PVR reported strong performance with box office revenue of Rs 530.2 crore (up 80% QoQ; 16% higher than precovid). The company reported Rs 323.8 crore of F&B revenues, up 90% QoQ, with SPH at Rs 134 was up 10% QoQ. The ad revenues of Rs 62.7 crore (68% of precovid). The footfalls were up ~75% QoQ at 25 million and ATP at Rs 250 was up ~3% QoQ owing to slate mix. EBITDA (ex- Ind AS116) was at Rs 189 crore with margins of 19.3% (better than pre covid levels of 18%) given the strong box office performance.
Our Perspective
The company has guided for 125 screens opening FY23, with capex of Rs ~400 crore, all funded through internal accruals. It also guided that ad revenues would get to pre-Covid run rate in Q3 led by festive recovery. On the SPH front, the company indicated that SPH to ATP ratio (currently at 54%) will continue to inch up, going ahead. It expects the ATP to remain firm. We continue to believe PVR is a proxy play on urban/semi urban discretionary spends. We believe that that with strong content pipeline recovery trend will continue ahead. Furthermore, merged entity (PVR Inox) will benefit from scale of expansion, faster growth trajectory and other revenues/cost synergy
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
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