PVR INOX Reports Record Profits in Q2 Fueled by 'Jawan' and 'Gadar 2

PVR INOX, India's largest multiplex chain, achieved a significant milestone by reporting a profit of Rs 166 crore in the third quarter of 2023, marking its best-ever quarter. This achievement can be attributed to the remarkable success of Bollywood, Hollywood, and regional films, providing much-needed respite for the multiplex chain, which had been grappling with declining revenues due to the pandemic. The success comes following the merger of erstwhile rivals PVR and INOX.

With 1,702 screens in 358 cinemas across 115 cities in India and Sri Lanka, PVR INOX recorded a quarterly revenue of Rs 2,023 crore, a substantial increase from Rs 702.4 crore in the corresponding period of the previous year. Notably, the Profit After Tax (PAT) surged to Rs 166 crore, a remarkable turnaround from the Rs 71 crore loss reported a year ago.

The merger of PVR and INOX, which took effect on February 6, 2023, led to the presentation of the company's results on a merged basis, making them incomparable to the previous year's figures.

The resurgence in the Hindi film industry, which contributes significantly to the multiplex chain's theatrical revenues, is particularly noteworthy. PVR INOX reported its highest-ever box office collection of Rs 1,335.8 crore in the third quarter, representing a 106% increase compared to the Rs 648 crore collection in the same period the previous year. This surge was driven by the success of movies like 'Jawan,' 'Gadar 2,' 'Rocky aur Rani ki Prem Kahani,' 'Oh my God 2,' 'Dream Girl 2,' 'Fukrey 3,' and Hollywood releases like 'Oppenheimer' and 'Mission Impossible: Dead Reckoning Part 1,' among others. Regional cinema also contributed to this success with hits like 'Jailer' (Tamil), 'Baipan Bhari Deva' (Marathi), and 'Carry on Jatta 3' (Punjabi).

Ajay Bijli, Managing Director of PVR INOX, emphasized that these results highlight the immense potential of the Indian cinema industry and the strong appetite of Indian consumers to watch films on the big screen, regardless of language.

The merged entity also achieved a notable net debt reduction of Rs 3,27.6 crore in the April-September 2023 period and is on track to become free cash-flow positive by March 2024. The integration process has been progressing seamlessly, leading to operational efficiencies in various aspects of the business. PVR INOX plans to open 160 new screens in the fiscal year 2024, with 68 screens already operational. Additionally, it aims to exit 60 underperforming screens in the current fiscal year, with 33 screens already closed in the past six months.