PVR Q3 net may fall 26% on lower EBITDA & higher tax

PVR is likely to see weak December quarter on lower EBITDA and higher tax. The media company is expected to post net profit at Rs 23.3 crore in October-December, down 26 percent from Rs 31.6 crore. According to a CNBC-TV18 poll,  total income is seen rising 14.7 percent at Rs 482 crore in Q3 compared to Rs 420.3 crore in year-ago period. 

Muted box office collection may impact footfalls and operating performance. Profitability may also be impacted by higher entertainment tax in Delhi. Analysts estimate effective tax rate may jump to 33 percent from nil as guided earlier.

EBITDA is likely to fall due to lower occupancy on low base this quarter. Key films in  this quarter were Prem Ratan Dhan Paayo, Bajirao Mastani and Dilwale compared to Q3 FY15. Analysts polled by CNBC-TV18 feel EBITDA may drop 2 percent at Rs 81.9 crore in Q3 against Rs 83.1 crore while margins may decline 280 basis points (bps) at 17 percent versus 19.8 percent (YoY).

PVR had distributed two movies through its PVR Pictures arm, which may lead to higher other operating income.