PVR makes a spectacular flop with loss of Rs 71 crore in Q2

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Multiplex operator PVR on October 17 reported a consolidated net loss of Rs 71.23 crore for the quarter ended September 2022. This was nearly half of the loss of Rs 153.13 crore in the same quarter last year.

Its revenue from operations for the quarter stood at Rs 686.72 crore, an over five-fold jump from Rs 120.32 crore in the same quarter last year. The previous year was badly affected due to pandemic restrictions, so may not be exactly comparable.

Sequentially, revenue fell 30 percent from Rs 981.40 crore. The company had reported a profit of Rs 53.38 crore in the previous quarter.

The Indian multiplex industry along with Bollywood has been in a rough patch as streaming services and non-Hindi language rivals have started stealing the show. The impact is clearly visible on the numbers reported by PVR.

Of the more than 50 Bollywood films released in the past year - fewer than normal because of the pandemic - just one-fifth have met or surpassed the revenue targets, said media analyst Karan Taurani of Elara Capital, in a recent report. It was 50 percent before the pandemic.

Shares of PVR traded flat on October 17 on the BSE. It was up 26 percent year-to-date but was down 8 percent in the last six months.

Ajay Bijli, Chairman of PVR, in conversation with CNBC TV-18 after earnings were announced, accepted that some movies that came recently did not do well, but defended that there are still people in India who want to go to cinema halls.

Bijili said his company is hedging its bets thanks to larger presence in South India where the regional movies have done relatively well.

INOX and PVR, two of India's biggest multiplex operators, are also in the process of merging their businesses to "create scale".

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