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PVR Chairman says focus is on screen additions, big cinema launches post the COVID impact

PVR has a pipeline of 125 screens for FY23 and is looking at higher screen additions post the merger with INOX.

August 10, 2022 / 01:06 PM IST
PVR | CMP: Rs 1,935 | The share added a percent on July 22. The company reported robust numbers for the quarter ended June 2022. PVR has reported a consolidated net profit of Rs 53.38 crore as against a loss of Rs 219.44 crore in June 2021. Revenue from operation stood at Rs 981.40 crore, up 1552.47 percent from Rs 59.39 crore a year back. PVR saw 23 percent growth in ATP at Rs 250 in the quarter ended June, 2022, compared to Rs 203 in Q1 FY20. Foreign research firm Goldman Sachs has kept the 'buy' rating on the stock with a target at Rs 2,400 per share.

PVR | CMP: Rs 1,935 | The share added a percent on July 22. The company reported robust numbers for the quarter ended June 2022. PVR has reported a consolidated net profit of Rs 53.38 crore as against a loss of Rs 219.44 crore in June 2021. Revenue from operation stood at Rs 981.40 crore, up 1552.47 percent from Rs 59.39 crore a year back. PVR saw 23 percent growth in ATP at Rs 250 in the quarter ended June, 2022, compared to Rs 203 in Q1 FY20. Foreign research firm Goldman Sachs has kept the 'buy' rating on the stock with a target at Rs 2,400 per share.

 
 
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Multiplex operator PVR which has a strong pipeline of screens in FY23 is concentrating on growing its screen count especially after the two year of COVID-19 impact which slowed down screen additions.

Coming out of the pandemic, Ajay Bijli, Chairman and Managing Director, PVR Limited said that the focus is on adding more screens. "There are 125 screens that are under fitout. The shopping centres have bunched up together as a lot of them had stopped (work due to COVID-19) but they came back together in big way after two years of halt," Bijli told Moneycontrol on the sidelines of the company's 25th anniversary event.

He added, "We are opening big cinemas like 12-screen cinema in Lulu Mall,  another 12 in Trivandrum, one in Kanakpura with Prestige Group, one called Bhartiya mall in Bengaluru, then we got Transit mall which is a 5-screen complex in Chennai. We are not there in Iaipur, so there we are coming up with an 8-screen complex. We are adding lot of new catchments like Dehradun, Pune. So, coming out of the pandemic the focus mainly is going to be screen additions."

Bijli also highlighted how PVR started its journey with a single screen and shifted to launching multiplexes in India.

"I wanted to do multiplexes straight away and what gave impetus to screen growth was malls coming up and I had called the mall owners proposing that we want to anchor the malls with PVR cinemas. Organised retail format was the big boost," he said.

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Bijli also said that the merger with INOX will also lead to healthy screen growth. "Due to the pandemic both the companies' balance sheet got hammered and we thought by coming together we will be able to come out stronger. This business is all about scale. And rather than being separate if we come together it will be a formidable company in the media and entertainment space which looks much leaner, healthier on the balance sheet and revenues go up, screen additions go high," he said.

PVR and INOX that had announced their merger in March this year said that the they have a combined pipeline of 2,000 screens and aim to double this size in next seven years, entailing an investment of Rs 4,000 crore. The merged entity would invest capital expenditure of Rs 2.5 crore per screen as part of their expansion, Inox Leisure Director Siddharth Jain had said during conference call after announcing the merger.

While screen addition is the focus, Bijli is betting big on the upcoming long weekend period which has many big-ticket releases including Aamir Khan's Laal Singh Chadha and Akshay Kumar-starrer Raksha Bandhan.

"It is an important weekend as 5-day weekend is rare to get and the kind of advances we are seeing for the two films (Laal Singh Chadha and Raksha Bandhan) are solid," said Bijli.
Maryam Farooqui
first published: Aug 10, 2022 01:06 pm
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