PVR garners profit of ₹16 cr in Q3 versus losses, revenue sees strong growth
The company posted a net loss of ₹71.23 crore in Q2FY23, which was bigger than expected, compared to ₹153.13 crore in Q2FY22.
PremiumPVR announced its third quarter ending December 31, 2022 (Q3FY23) results on Thursday. The leading multiplex operator turned profitable in Q3FY23 by recording PAT to the tune of ₹16.15 crore versus losses of ₹10.18 crore in Q3FY22 and ₹71.23 crore in Q2FY23. PVR witnessed a sharp bounce back from the previous quarter on the back of strong content performance.
PVR's top-line front also witnessed strong growth. In Q3FY23, the company's consolidated revenue from operations rose by 53.17% to ₹940.69 crore compared to ₹614.15 crore in the same quarter a year ago. The revenue was up by 36.98% from ₹686.72 crore in September 2022 quarter.
In its financial report, PVR said, "the quarter witnessed a sharp bounce back from the previous quarter on the back of strong content performance. The same was reflected in the growth of key operating metrics like Admits, ATP, and SPH."
On the performance, Ajay Bijli, Chairman cum Managing Director, PVR Ltd said, “The performance of the quarter gone by demonstrates the swift recovery in the business as soon as good quality content is made available. After a dismal Q2, it also marks good recovery in box office collections."
During Q3, the company stated that the quarter saw Hollywood’s resurgence with the highest-grossing movie of the quarter ‘Avatar 2: The Way of Water’ and was supported by movies like ‘Black Panther: Wakanda Forever’ and ‘Black Adam’. The dominance of Regional cinema continued in the 3rd quarter with blockbusters like ‘Ponniyin Selvan 1’ and ‘Love Today’. ‘Kantara’ which turned out to be a sleeper hit, was the biggest regional release during the quarter. ‘Drishyam 2’ from Bollywood turned out to be 2nd biggest movie of the quarter and was supported by content like ‘Vikram Vedha’ and ‘Bhediya’.
PVR has opened 63 screens across 11 cinemas to date and is on track to open a total of 100-110 new screens by the end of the current fiscal year.
PVR said, 2023 appears to be a promising year for the film industry with a significant increase in the number of Hollywood film titles as compared to 2022 and an increase in big tent pole releases. 3 films are lined up for release from both Marvel and DC comics universes.
Additionally, there are sequels to superhit franchises like Mission Impossible, Indiana Jones, Transformers, and Fast & Furious that will get released during the year. Also, after a lacklustre 2022, the Hindi film industry is gearing up for a much stronger 2023 with several big films slated to release in the next 12 months.
Also, Bijli added, "With the Regional movies superlative performance continuing across India, it is only a matter of time before performance of Bollywood movies catches up. We are looking for a significant uptick in box office collections for next fiscal year and a strong recovery in Bollywood and Hollywood film collections."
On the merger with Inox Leisure, Bijli said, "With the verbal approval for the merger coming through from NCLT, we are tracking well within the projected timelines for the closure of the transaction. We intend to complete all the formalities within the current financial year."
On BSE, PVR shares closed at ₹1,676.95 apiece up 0.43%. The company's market cap is around ₹10,271 crore.
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