PVR Q3 net profit up marginally at Rs 9.13 cr

Consolidated revenue up 43% at Rs202.44cr

Gurgaon-based multiplex major PVR Limited has posted a consolidated net profit of Rs 9.13 crore for the quarter ended December 31, 2012. While the net revenue is almost flat compared to the corresponding quarter of the previous fiscal, when it was at Rs 9 crore, the company is bullish about the substantial EBITDA improvement.

Nitin Sood, CFO of PVR told Business Standard, “There are two reasons for the flat net profit in the quarter. First, it is not comparable in the absolute terms, as last fiscal, the issue of service tax on leave rentals was under litigation and approximately amount of Rs 3 crore was not taken in the books in the third quarter. The whole amount was adjusted in the fourth quarter. Secondly, we started 47 new screens in the year, which are yet to hit the optimum profit margins. In the next 6-9 months, they will, improving the overall margins.”

The consolidated revenues for quarter was Rs 202.44 crores, up 43% as compared to Rs 141.32 crores in the corresponding period of last year. Consolidated EBITDA was up 34% to Rs 35.43 crores as against Rs 26.38 crores in the same period last year.

The exhibition business showed a growth of 47% in the overall revenues driven by strong box office performance and food & beverage revenues. During the quarter the company had 9 million footfalls in its cinemas, up by 38% as compared to corresponding quarter of previous year. Food and beverage revenues grew by 49% over corresponding quarter of previous year. Sponsorship revenues also showed a stellar growth of 23% over corresponding quarter of previous year.

“Our same-store revenue has also seen over 20% growth which is very healthy,” Sood added. “The content pipeline for the next financial year is looking extremely promising. Over the next 12 months the management team’s focus will be to drive synergies from the combined network of PVR & Cinemax properties.”

On January 8, 2013, PVR completed the acquisition of 69.27% stake in Cinemax India Limited from its erstwhile promoters. On a combined basis, PVR & Cinemax will have a network of 351 screens spread over 85 properties in 36 cities across the country.

On how the acquisition will help the PVR's books, Sood said, “It will certainly add in the topline and EBITDA levels. While our interest and leverage will go up, it will be compensated by Cinemax' revenues.”

Sood added that the company has 100 screens under construction out of which 70-75 are expected to be operational by end of CY2013 and it is on its path of around 500+ screens by end of CY2014.

PVR shares closed at Rs 273.75, down 0.71% on BSE.