PVR INOX net profit rises 1.6-fold, Ajay Bijli says momentum is back

PVR INOX's Q3 profit jumped 1.6-fold on merger synergies and cost control, with strong film releases bringing audiences back to cinemas

PVR INOX saw its net profit rise 1.6 fold to ₹95.7 crore in the quarter ended December that the company attributed to merger synergies and cost control. The momentum is back, Ajay Bijli, managing director (MD) at PVR INOX told Business Standard. 

 

The cinema major’s revenue was up 9.5 per cent to ₹1,879.8 crore in the October-December quarter.

 

“The momentum is back… Even January has done very well. Obviously, there was a spillover of Dhurandhar doing very well. And then we had Border 2, which released on one of the biggest days of the year, January 26, and that has also done very well. I think the momentum for people to come back to the cinemas is back,” Bijli said.

 

 

He added that not only blockbusters are doing well, even mid-budget films have been performing well at the box office and are attracting audiences to the cinemas based on pure storytelling and performance. He said that the line-up of films for the year are great.

 

Profit before interest, tax and depreciation (PBIDT) was up 8.4 per cent to ₹617.5 crore in the quarter.

 

“The asset-light model and the Foco (franchise-owned, company-operated) model have helped us conserve our capital and basically we’ve grown. We will open about 96 screens this year as well, and yet 50 per cent will come without PVR INOX spending significant amount of capital. That has helped in conserving our cash, which has resulted in good accruals, and we reduced our debt as well,” Bijli said.

 

Earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin improvement has happened because of great movie performances, improvement in average ticket price and also due to improvements in spends per head and the company has controlled its costs as well, he explained. 

 

“The merger synergy benefits have accrued in this year, and line by line, we’ve already controlled our costs, so that even at lower occupancies we are delivering the same margins by having a close eye on the expense,” Bijli said.

 

The company intends to maintain its target of closing FY26 with 96 new screens. So far this year, PVR INOX has already opened 79 screens. Half of its new screen openings are through the Foco model.  

 

While it will continue to expand, its focus will also be to expand its screen presence in Tier-II and Tier-III towns as well.

 

Its food and beverage revenue is expected to reach ₹2,000 crore, the company said in its earnings presentation.