PVR Ltd reported a net profit of 68.3 crores (Ind-AS adjusted) for the quarter ending June 2022 on Thursday. Its revenue increased to 1,000.4 crores, while its Q1 EBITDA was 208 crore in Q1FY23, with an EBITDA margin of 20.3 percent in the April-June period.
The company is back in the black after losing money in the previous quarters due to the severe impact of covid-induced lockdowns in the country.
As a result of the pandemic, the company revealed numbers comparable to Q1FY20, i.e., the pre-pandemic period, when net profit was 44.2 crore and revenue was 887 crore, while EBITDA (earnings before interest, taxes, depreciation, and amortisation) was 165.5 crore.
PVR stated that it is on track to open 125 screens in the current fiscal year when discussing its screen outlook for FY23. So far, 14 screens across three properties have opened, 82 screens are currently under construction in nine new cities, and the majority of the properties will open in Q3 and Q4.
PVR shares jumped after the Q1 earnings report and were trading nearly 3% higher on the BSE in afternoon trades. So far in 2022 (YTD), PVR shares are up more than 44 percent.
On March 27, this year, PVR and INOX Leisure announced a merger agreement to form the country’s largest multiplex chain, with a network of more than 1,500 screens, to capitalise on opportunities in tier III, IV, and V cities, in addition to developed markets.
The combined entity will be known as PVR INOX Ltd, with existing screens continuing to be branded as PVR and INOX, respectively. PVR INOX will be the name of new cinemas that open following the merger, the companies announced on March 27.
The merger of PVR and Inox will result in a multiplex behemoth with over 1,500 screens across India. According to the agreement, the swap ratio is 3:10, which means that 3 shares of PVR are exchanged for 10 shares of Inox. Following the merger, the board will be reconstituted with 10 members. Both promoter families will be represented on the board with two seats each.
