No let up in action for PVR Inox with Jawan
Gadar 2, Jailer, OMG 2, Dream Girl 2, Rocky aur Rani kii Prem Kahani, and Oppenheimer. In September, Shahrukh Khan-starrer Jawan is expected to work its magic on the box-office collections. Expectations are high and it helps that the initial news flow on Jawan’s collections has been upbeat. In this backdrop, investors in the PVR Inox stock will keep an eye on the September quarter (Q2FY24) to see if it proves to be better than Q1FY23, the best post-covid quarter.
“On a consolidated basis, PVR + Inox did 30-33% occupancy pre-covid, we expect them to surpass it in Q2FY24," said Shobit Singhal, analyst at Anand Rathi Shares and Stock Brokers. Q2FY24 is likely to be better than Q1FY23, according to him. Further, the movie pipeline for the December quarter looks decent, though not as exciting as the ongoing quarter, but promising nonetheless backed by the festival season.
However, to some extent, the 2023 ICC Men’s Cricket World Cup matches may adversely impact footfalls. For the financial year, this means PVR Inox is on course to surpass the combined revenues seen before the pandemic (FY19 and FY20). JM Financial Institutional Securities expects PVR Inox’s occupancy rates in FY24 to be lower than pre-pandemic levels of FY19-FY20 (based on pro-forma numbers).
Still, the broking firm expects FY24 revenues to surpass pre-pandemic levels on the back of ongoing screen additions, higher average ticket prices and healthy spends per head. The company is on track to open 150-165 screens in FY24. Currently, it has slightly over 1,700 screens.
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