Ajay Bijli, chairman and managing director, PVR, said that the year saw one of the best box office performances with movies across genres attracting customers to the cinema.
Multiplex chain PVR, on Friday, reported 84.43% year-on-year rise in consolidated net profits to Rs 47.75 crore for the quarter ended March 2019, driven by significant growth in movie exhibition revenues. The profits were in line with analysts expectations. Analysts had earlier said robust box office collections, footfall growth and uptick in F&B revenues will improve the company’s profitability in Q4FY19.
Operating margins for the quarter increased by 280 basis points year-on-year to 20%. Consequently, EBITDA (earnings before interest, tax, depreciation and amortisation) rose by 66% to Rs 169 crore.
Ajay Bijli, chairman and managing director, PVR, said that the year saw one of the best box office performances with movies across genres attracting customers to the cinema. “The recent reduction of GST rate on movie tickets above Rs 100 from 28% to 18% and for movie tickets below Rs 100 from 18% to 12% will further make this experience accessible to larger population,” he added.
Revenue from operations in the quarter grew 43.20% year-on-year to Rs 837.63 crore. Revenues from the movie exhibition increased to Rs 829.66 crore in the quarter as against Rs 566.81 crore in the year ago quarter.
“Box office collections hit all-time highs in Q4FY19 with Bollywood movies crossing the coveted Rs 100 crore mark, Uri (around Rs 240 crore collection), Total Dhamaal (around Rs 155 crore), Simmba (around Rs 140 crore), Gully Boy (around Rs 140 crore) and Kesari (around Rs 125 crore),” analysts at Edelweiss said.
During Q1FY20, PVR has added 138 screens. This also included screen additions made by the company on acquisition of SPI Cinemas. The company currently operates 771 screens across 67 cities in the country.
Analysts expect slowdown in movies business during the ongoing quarter. “We expect Q1FY20 to be leaner for multiplexes, as producers would prefer to release their movies once attention shifts from the cricketing season (IPL and World Cup) and general elections,” they wrote.
Shares of the company closed at Rs 1,713.45, down 2.65%, on BSE.