A dull show: Expectations from PVR Inox's Q1FY24 result run low
earnings of PVR Inox are expected to disappoint due to continued weak performance of Bollywood movies. According to a report by Prabhudas Lilladher, national box office revenues for Bollywood productions, including Hindi-dubbed films, saw a 20% sequential decline in Q1FY24 and a 28% year-on-year (YoY) drop. “We expect PVR-Inox to report footfalls of 33 million with pre Ind-AS Ebitda (earnings before interest, tax, depreciation and amortisation) margin of 5.8%.
Given weak performance in 1QFY24, we cut our pre-IND AS Ebitda estimates by 9%/8% for FY24E/FY25E," said the Prabhudas Lilladher report. While The Kerala Story generated impressive collections, high-profile releases like Kisi Ka Bhai Kisi Ki Jaan and Adipurush failed to generate significant revenue, putting a further strain on the sector.
Nuvama Research anticipates that the quarter's overall performance will fall short of industry expectations, due to factors including the delay of releases such as Jawaan and Maidan. “We expect ATP and SPH to improve year-on-year and quarter-on-quarter to Rs245 and Rs125, respectively, due to good Hollywood and regional movies, which generally also have a high food and beverage spends." Ad revenue is expected to be around ₹92 crore, added the report.
However, things are looking good for Q2FY24 as the Bollywood and Hollywood release schedule looks promising, with films like Gadar-2, Oh My God-2, Jawan, Dream Girl-2, MI-Dead Reckoning, and Oppenheimer set to debut. “ 'Satyaprem Ki Katha' has seen some good response with ₹38.5 crore collection on its opening weekend, but needs to see progress.
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