PVR reports Q1 net profit of ₹68 crore

Multiplex operator PVR Ltd on Thursday reported a net profit of ₹68.3 crore (Ind-AS adjusted) for the quarter ending June 2022.

Its revenue rose to ₹1,000.4 crore whereas its Q1 EBITDA came at ₹208 crore during Q1FY23 with EBITDA margin at 20.3% during the April-June period.

The company is back to witnessing profit after reporting losses in the previous few quarters due to severe impact of covid-induced lockdowns in the country.

As the business was impacted by the pandemic, the company revealed numbers comparable against Q1FY20 i.e., pre-pandemic period, when the net profit stood at ₹44.2 crore and revenue at ₹887 crore while the EBITDA (earnings before interest, taxes, depreciation and amortization) during Q1FY20 was at ₹165.5 crore.

Sharing its screen outlook for FY23, PVR said it is on track to open 125 screens in the current financial year. 14 screens across 3 properties opened so far, 82 screens are currently under fitout entering 9 new cities and bulk of the properties will open in Q3 and Q4.

Shares of PVR jumped after Q1 announcement and were trading nearly 3% higher on the BSE in afternoon deals. PVR shares are up more than 44% in 2022 (YTD) so far.

On March 27 this year, PVR and INOX Leisure announced a merger deal to create the largest multiplex chain in the country with a network of more than 1,500 screens to unlock the opportunities in tier III, IV & V cities, besides in the developed markets.

PVR and Inox merger will create a multiplex behemoth with a network of 1,500+ screens across India. As per the agreement, the swap ratio is 3:10 i.e., 3 shares of PVR for 10 shares of Inox.

Post-merger, the board will be reconstituted and will have 10 members.

Both promoter families will have equal representation on board with 2 seats each.