PVR Inox posts ₹130 cr loss in Q4; revenue up 12%

PVR Inox, the country’s largest multiplex chain, posted consolidated net loss of ₹129.7 crore in the fourth quarter ended March 31, 2024, dented by weak box office collections during the January-March period, which turned out to be the weakest quarter of the year. The company had posted a net loss of ₹334 crore in the same period last year. Post Q4 results, PVR Inox shares ended 1.43% lower at ₹1,298 on the BSE.

During the quarter under review, total revenue rose by 12% to ₹1,305.5 crore from ₹1,164.9 crore in the corresponding period last year, as per the earnings report released by the company today.

On the operating front, EBITDA stood at ₹327.5 crore, registering a growth of 14.7% over ₹285.6 crore in the year ago period. The margin improved to 25.1% from 24.5% in the same period last year.

Ajay Bijli, Managing Director, PVR Inox, says, "Our endeavour is to redefine our growth strategy, focus on fixed cost reduction thus improving profitability resulting in enhanced return on capital and free cash flow generation.”

For the full financial year 2023-24, the net loss of PVR Inox narrowed significantly to ₹32.7 crore from ₹336.4 crore in the previous fiscal. The revenue surged 63.5% to ₹6,263.7 crore compared with ₹3,829.7 crore in FY23. The EBITDA jumped 74.5% to ₹1,966.7 crore from ₹1,126.8 crore in the last fiscal.

The multiplex chain operator in its earnings report says that the full year (FY24) results “are not comparable with earlier periods" as the merger between PVR and its rival INOX Leisure became effective from February 6, 2023.

As per the company, it has been working hard to achieve the full potential of the merger. “Right after the merger was consummated, we had guided for annual EBITDA level synergies of ₹225 crore which will be achieved over 12-24 months. We are happy to update that the integration process has been moving along well and has produced significant operational savings,” says the company.

During the year, the company achieved a total EBITDA level synergy of ₹185– 208 crore. Of this, the box office contributes around ₹89–97 crore, food & beverage contributes in the range of ₹34–40 crore, savings on manpower & other overheads contribute around ₹62–71 crore. “While a large part of the merger synergies we had guided for has been achieved in FY24, we expect to realise further synergies in FY25 as well. The full impact of these synergies would be visible as occupancies improve,” it adds.

The release notes that significant volatility was observed in box office collections during the year. “Quarter ended March 2024 was the weakest quarter of the year.”

As per the company, India box office in January started off on a decent note with ‘Fighter’ (Hindi) grossing ₹255 crore, ‘Hanuman’ (Telugu) (₹238 crore), and month of March saw releases like ‘Shaitaan’ (Hindi) grossing ₹176 crore, which performed well at the box office. However, the overall quarter was muted with admissions of 32.6 million (YoY growth of 7%) and an average ticket price (ATP) of ₹233 (YoY de-growth of -2%). The F&B spend per head (SPH) was ₹129, up 8% YoY.

For the full fiscal FY24, the company recorded 151.4 million admissions (YoY growth of 59%) with an ATP of ₹259, up 8% YoY, and SPH of ₹132 (YoY growth of 3%). This led to a 73% increase in ticket sales, a 64% rise in food & beverage sales, and a 56% boost in Ad sales when compared to proforma figures from FY23, the release highlighted.

In the current quarter, the ongoing Lok Sabha General Elections has also impacted the flow of new releases, which is expected to stabilise by mid-June.

During the year, the company opened 130 new screens and closed 85 underperforming screening, resulting in net addition of 45 screens. Currently, the screen portfolio includes 1,748 screens in 360 cinemas across 112 cities in India and Sri Lanka. The company generated free cash flow of ₹115.8 crore during the year and used it to reduce its net debt from ₹1,430.4 crore on March 31, 2023 to ₹1,294 crore on March 31, 2024.