PVR-Inox Q3 Results Review - Occupancies Moderate; Sustenance To Remain A Key Monitorable: Motilal Oswal

Motilal Oswal Report

PVR Inox Ltd.'s revenue growth moderated 6% YoY to Rs 15.5 billion (23% decline QoQ), as ticketing revenue posted a soft performance in the early part of Q3 FY24 due to the ICC Cricket World Cup.

Ebitda declined 3% YoY with a margin contraction of 130 basis points YoY. These were dragged by lower occupancies, partially offset by average ticket price/spends per head growth of 14%/8% in Q3 FY24.

The decent performance of movies in January 2024, coupled with a healthy pipeline of movies across languages, remains key support.

However, continued fluctuation within the occupancies could remain a key monitorable, as the business remains highly sensitive to occupancy, and even a 200-300 basis points blip could derail the screen economics. Reiterate Neutral with a target price of Rs 1,600.

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