PVR, INOX to see around 40% sequential decline in Q2FY23

Only Bharmastra: Part One – Shiva and Thor: Love and Thunder managed to collect over Rs 100 crore at the box office during the quarter. On the other hand, the much awaited movies with big star cast like Shamshera, Laal Singh Chaddha and Raksha Bandhan did not do well.

“NBOC (Bollywood + Hollywood) had Rs 698 crore in 2QFY23 due to a string of flops in the Hindi genre,” analysts at Prabhudas Lilladher said in a recent note.

As a result, the footfall on these multiparticipant Chain was bound to be hit in Q2FY23.

The domestic brokerage house said, “Our checks suggest that the number of clients could be ~30-40% lower as compared to 1QFY23. On a conservative basis, a 40% drop would mean that the number of clients for PVR/Inox 15 million/11 million respectively.” Told.

The report highlighted the profitability challenges for these companies, noting that costs including rent are now at pre-Covid levels.

However, after a sluggish second quarter, the third quarter is likely to be better for these companies. The report said that 3QFY23 has had a good opening week. It said, “Vikram Vedha has earned Rs 37 crores while PS-1 has crossed Rs 100 crores till date. The content pipeline for 3QFY23 is from films like Ram Setu, Thank God, Black Panther and Avatar. Stronger because of its release.”

Shares of PVR and Inox have gained 29 per cent and 40 per cent, respectively, in this calendar year so far. However, after hitting new 52-week highs of Rs 2,214.85 and Rs 619.350 on August 4, 2022, their stock prices declined. Shares of PVR and Inox were trading at Rs 1,733.35 and Rs 498, respectively, down more than 1.5 per cent on Tuesday.