PVR betting big on robust content pipeline, capital light model for future growth

Leading multiplex chain PVR INOX is banking on a strong content pipeline across genres and its capital light strategy for stronger growth in the coming quarters. The multiplex chain said that the December quarter was the best quarterly performance in five quarters. 

Consolidated net profit soared to ₹35.9 crore for the third quarter compared to net profit of ₹12.8 crore in the corresponding quarter in the previous fiscal. Revenue from operations stood at ₹1,717.3 crore, up 11 per cent over a year-ago period.

Ajay Bijli, Chairman & Managing Director, PVR INOX told businessline, “ During this fiscal year, the Hindi movie pipeline was subdued. Also the Hollywood strike impacted release of new Hollywood content. It looks like the momentum is back now. If we look at the next fiscal year’s content line-up and the way consumers are enthusiastically watching re-releases, I believe the consumption of movies is bound to increase. We hope to see much more consistency in the box office performance and less volatility.”

Responding to a query on the urban slowdown, Bijli said, “The tax benefits announced by the government in the Budget will definitely give more discretionary income to the consumers. This will also lead to improvement in consumption patterns. It is still a small ticket size in terms of spending patterns to watch movies.”

During the quarter, the company recorded 3.73 crore admissions. ”Blockbuster movies propelled Q3 to the highest box office earnings of the year. This success led to record-breaking average ticket prices and spending per head, reaching ₹281 and ₹140 respectively. Advertising revenue also soared to ₹1,486 million , the highest since the pandemic,” it said in its earning statement.

The company said the focus remains on focusing on the capital-light model, enhancing free cash generation, reducing net debt, controlling costs and delivering a diverse slate of films. Through the capital-light model, Bijli said that the company is focusing on monetising its strong brand equity “ This strategy enables us to decrease capital intensity and improve our margins. It will also enable us to maintain the growth trajectory of adding 100-120 screens every year,” he added. The company said it has signed 100 screens till date under the capital-light model.

PVR INOX now operates 1728 screens across 111 cities( including Sri Lanka.)