After Krrish 3 success, PVR eyes a strong quarter
Bollywood had never had a so good a year despite the slowdown in the Indian economy. The latest to join the Rs 100 crore list this year is Krrish 3, which has smashed the single-day collection record by earning over Rs 35 crore on November 4.
After the big success of Krrish 3, PVR, the country's largest multiplex chain operator, is also hoping for a similar boost from the other big releases lined up in this quarter: Ram Leela and Dhoom 3.
"The quarter has great content coming in, starting from Krrish 3, Ram Leela and Dhoom 3. The content pipeline is very strong," says Pramod Arora, Group President & CEO of PVR.
Expecting a big boost from the big releases during the October-December quarter, Mr Arora told NDTV that the results for the period could be a "pleasant surprise".
The PVR shares are up nearly 150 percent over the past year. The shares of Eros International Media, which is the overseas distributor of Krrish 3, surged nearly 18 percent in the past week, boosted by the strong overseas collection of Krrish 3.
The multiplex chain operator reported a consolidated net profit at Rs 27.66 crore for the second quarter ended September 30. Its EBITA margin, an indicator of operating profit, rose to 20.4 percent during the second quarter, the best in the past five quarters.
Mr Arora expects a further increase in its operating profit for the September-December quarter, expecting good results from Ram Leela and Dhoom 3.
In January this year, PVR had announced the acquisition of 69.27 per cent stake from the promoter group of Cinemax in an all cash consideration of Rs 395 crore through its subsidiary Cine Hospitality.
Mr Arora said PVR expects to add 80-90 screens every year despite the slowdown in the economy. And if the economic growth picks up, there could be higher additions, he added.
