ICICIdirect.com's report on INOX Leisure
We can attribute revenue growth of 17.3% YoY to higher-than-expected other operating income, which came in at Rs 25.7 crore vs. Rs 13.5 crore in Q4FY14. Net box office collections came in at Rs 112.0 crore and were in line with estimates. F&B revenues came in at Rs 37.4 crore, getting a boost from higher-than-expected spends per head, which grew 8% YoY to Rs 53.0. Advertising revenues were in line with expectations at Rs 19.8 crore
EBITDA came in at Rs 10.5 crore, higher than our expectation of Rs 8.7 crore owing to higher margin contributing other operating income and cost rationalisation efforts. EBITDA margins came in at 5.4%
The net loss of Rs 4.1 crore was substantially lower than our estimates of Rs 20.9 crore loss owing to certain tax-write backs
"We expect consolidated revenue and EBITDA growth of 18.2% and 36.8% CAGR, respectively, in FY15-17E, led by ATP uptick and increased occupancies aided by the higher property roll-out. Though the aberrance in the box office performance of movies could be a downside risk to our estimates, we continue to maintain BUY rating valuing it at 21x P/E on FY17 EPS. Treasury shares have been valued at a 50% discount to the market price. Hence, we arrive at a target price of Rs 210", says ICICIdirect.com research report.
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