PVR Inox to declare Q2 results today; check stock's performance, recent updates and Q1 earnings

The leading multiplex operator announced in September 2024 that it plans to close 70 non-performing screens in FY25 and will go for potential monetisation of non-core real estate assets in prime locations such as Mumbai, Pune, and Vadodara, according to its latest annual report.

Though the company will add 120 new screens in FY25, it will also close almost 60-70 non-performing screens as it chases for profitable growth.

About 40% of new screen additions will come from South India, where it will have a "strategic focus" on this lesser penetrated region as per its medium- to long-term strategy.

Now, PVR Inox will partner with developers to jointly invest in new screen capex by shifting towards a franchise-owned and company-operated (FOCO) model.

It is also evaluating monetisation of owned real estate assets, as the leading film exhibitor aims to become a "net-debt-free" company in the foreseeable future.

"This involves a potential monetisation of our non-core real estate assets in prime locations such as Mumbai, Pune, and Vadodara," said Managing Director Ajay Kumar Bijli and Executive Director Sanjeev Kumar addressing the shareholders of the company.

PVR Inox Q1 FY25 Results

The cinema exhibitor reported a widening of consolidated net loss to ₹179 crore in the June quarter impacted by postponement of film releases due to general elections.

The company had posted a consolidated net loss of ₹82 crore in the first quarter last fiscal, PVR Inox said in a regulatory filing.

Consolidated revenue from operations was at ₹1,190.7 crore in the first quarter, down from ₹1,304.9 crore in the year-ago period, it added. "The quarter began on a soft note, with April and May getting impacted due to the general elections, which were the second longest in India's history at 44 days," the company said in its earnings statement.

This prompted many producers to postpone film releases, resulting in a 13% drop in the number of releases in the quarter as compared to the first quarter of last year. The number of blockbusters also declined sharply this quarter, with only three films crossing the ₹100 crore mark compared to seven last year, it added.

On the outlook, PVR Inox Managing Director Ajay Bijli said, "There are no significant events expected in the near future to disrupt the release schedule. Additionally, Hollywood is expected to bounce back, as the effects of the writer and actor strikes are beginning to diminish.

"We anticipate a significantly improved performance in the remaining three quarters of the current fiscal year.

Shares of the company have slipped nearly 9% in the past 12 months and around 6% in the last 30 days. 

Remember, the multiplex chain was created after the merger of two leading cinema brands, PVR and INOX Leisure. The merger is effective from February 6, 2023.