Stree 2 rescues PVR Inox in an otherwise dull quarter

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Subscribe to enjoy similar stories. MUMBAI : PVR Inox Ltd has got a shot in the arm with the roaring success of Stree 2. The Hindi horror comedy, starring Shraddha Kapoor and Rajkummar Rao, has garnered ₹573 crore since its release on 15 August, according to Bollywood Hungama website.

Thus, it is not surprising that PVR Inox’s shares have risen 10% during the past month, beating the Nifty 500 index's 3% returns. Other Bollywood movies released in the September quarter (Q2FY25), such as Vedaa, Khel Khel Mein, Sarfira, and Auron Mein Kahan Dum Tha, have put up a dull show. As such, Nuvama Research expects Stree 2 to cross net India box office lifetime collections of over ₹600 versus initial expectations of ₹400 crore.

This means higher footfalls for PVR Inox. Remember, the June quarter (Q1FY25) was muted for the company due to a relatively lower number of new releases as the general elections adversely impacted the release calendar across languages. “We are pencilling in sequential revenue growth of 20%, Ebitda (earnings before interest, taxes, depreciation and amortization) margin is seen at 10-12%, and footfalls are seen rising 15-20% in Q2FY25," said Shobit Singhal, analyst at Anand Rathi Institutional Equities.

Plus, advertisement income, which has been lagging below pre-covid levels, should revive, he added. Advertisers usually prefer to capitalize on higher footfalls. That said, the Q2FY24 was a bumper quarter for PVR Inox, with record footfalls of 48.4 million.