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PVR Inox, a prominent multiplex chain in India, has reported a consolidated net loss of Rs 12 crore for the quarter ended September 30, 2024. This stands in stark contrast to the net profit of Rs 166 crore achieved in the same period last year. The company's revenue from operations for the reported quarter reached Rs 1,622 crore, representing a 19% decline compared to the Rs 2,000 crore recorded in the corresponding quarter of the previous financial year. Despite this, the loss narrowed on a quarter-on-quarter basis when compared to the Rs 179 crore posted in Q1 FY25.
The company's performance reflects the ongoing challenges faced by the entertainment industry, particularly in the wake of the recent economic slowdown. Despite the revenue decline, PVR Inox managed to increase its revenue sequentially, growing by 36% from Rs 1,191 crore reported in the three-month period ended June 30, 2024. This sequential improvement suggests a potential recovery in audience turnout and ticket sales. The earnings announcement during market hours resulted in the stock trading flat, indicating that the market response was relatively neutral. However, overall sentiment remained positive around 1:30 PM.
Analyzing the company's expenses, PVR Inox successfully reduced its costs by 7% year-on-year (YoY) to Rs 1,679 crore, down from Rs 1,802 crore in Q2 FY24. This cost optimization strategy demonstrates the company's commitment to controlling expenses during a period of financial strain. However, on a sequential basis, expenses increased by 15% compared to Rs 1,457 crore in Q1 FY25. This suggests a potential increase in operational costs or a shift in spending priorities. A closer examination of the company's segments reveals that revenue from movie exhibition declined to Rs 1,579 crore in Q2 FY25, compared to Rs 1,970 crore in the same period last year, representing a 20% drop. This decline is directly linked to the decrease in overall revenue and likely reflects a dip in audience turnout. However, the company's revenue from movie production and distribution demonstrated a positive trend, increasing to Rs 108 crore in Q2 FY25, compared to Rs 61 crore in the corresponding quarter of the previous financial year. This growth highlights the potential for PVR Inox to diversify its revenue streams and mitigate the impact of fluctuations in movie exhibition.
Source: PVR Inox Q2 Results: Co posts Rs 12 crore loss vs Rs 166 crore profit YoY, revenue drops 19%