PVR Q1 Net Profit Jumps by 684 per cent

PVR is a Multiplex cinema exhibition company. The company operates a film distribution and production business through PVR Pictures, a subsidiary of the company. The company's operating business segment consists of Movie exhibitions, Movie productions & distribution and bowling alleys.

Recently PVR Cinema announced its Q1FY16 results, wherein the revenue from operation of PVR contracted by 34 per cent amounting to Rs 486.8 crore as against Rs 363.4 crore in Q1FY15 as 8 Blockbusters in the Quarter helped maximizing revenues. Out of the total revenue the Net Box Office contributed 59.3 per cent, Food & Beverages contributed 28 per cent, Advertising revenue contributed 9.9 per cent and other revenue contributed 2.8 per cent as on dated 30th June 2015.

The Net Box revenue increased by 35 per cent in first quarter FY16 as compared to first quarter FY15, due to strong content leading to double digit "Same Store Admits" growth, consistent growth in Average Ticket Price and differentiated pricing strategy. Food & Beverages revenues rose by 46 per cent in Q1FY16 compared to Q1FY15 due to Stellar Same Store F&B Spend Growth driven by Pricing and Volume growth and reduction in COGS driven by Scale and operational efficiency. The Sponsorship Revenues rose by 27 per cent in Q1Fy16 against Q1Fy15.

The total expenses increased by 21 per cent in this quarter due to increases in employee cost and other expenses. The EBITDA expanded by 103 per cent to Rs 113.27 crore from Rs 55.9 crore, EBITDA margin contracted by 79 basis points to 23.3 per cent on yearly basis. Depreciation slightly rose by 0.2 per cent in this quarter. The EBIT of PVR Cinema's increased by 214 per cent. The finance cost increased by 13 per cent in Q1FY16 compared to Q1FY15. The tax expenses rose by 850 per cent due to increased in entertainment tax. The Net Profit (PAT) rose by 684 per cent to Rs 58.45 crore in Q1Fy16 against Rs 7.46 crore same period of the last fiscal.

During the quarter, PVR opened 3 new screens at Bokaro, Jharkhand and 7 new screens at Trans Cube Plaza, Vadodara. After the announcement of the results,  PVR was trading 4 per higher yesterday. Today PVR is trading 2 per cent higher at Rs 875.