PVR Inox needs more than Kalki
MUMBAI : PVR Inox Ltd’s shares are languishing even as the broader stock markets are in a good mood. So far in 2024, the shares have fallen by 11% compared to 16% gain in the Nifty 500 index. The immediate worry is that the June quarter (Q1FY25) is likely to be another dull one for the multiplex company.
Sure, there are big hopes that the release of Deepika Padukone starrer Kalki 2898 AD on Thursday would help boost box office collections. But how much is the moot question. “How Kalki 2898 AD performs in the last four days of Q1FY25 would play a decisive role in whether box office collections register an increase or decrease for the quarter," said Jinesh Joshi, analyst at Prabhudas Lilladher.
“If we assume Kalki 2898 AD manages to garner net box office collection of about ₹300 crore in the first four days of its release, industry wide collections will be at about ₹1,881 crore in Q1FY25, clocking a growth of 1% year-on-year," he added. Nonetheless, expectations from PVR Inox’s Q1 performance are running low, with the Indian Premier League 2024 and the general elections weighing on the flow of new releases during the quarter, and in turn footfalls. The second quarter is expected to be relatively better led by the release of movies such as Despicable Me 4, Stree 2 and Sarfira.
But year-on-year growth would take a beating owing to the lack of many large ticket Hindi films and a high base as last year’s Q2 had hit movies such as Gadar 2, Rocky Aur Rani Kii Prem Kahani and Jawan. Moreover, the release of the movie Pushpa 2: The Rule this year has been postponed to Q3 from Q2. “The wait for occupancy revival may turn longer for PVR Inox," says Karan Taurani, analyst at Elara Capital (India). “We estimate occupancy levels will
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