PVR-Inox - Structurally Better Placed; Near Term Soft: Nirmal Bang

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.In the context of a critical variable that is not under its control – the success of content – we believe the PVR-Inox Ltd. merger has helped build a better economic structure for itself– it has led to a controlled expansion of screens now that competitive pressure is behind it. Industry sources indicate that Cinepolis, the other key competitor, does not have deep enough pockets to act as a spoiler. In H1 FY24, only a net of 28 screens have been added, which has helped in lowering net debt by Rs 3.27 billion. A blockbuster Q2 FY24 was a big help to achieve this net debt reduction. We believe actual screen addition number will come in lower than what the company has been publicly stating as it wants to add screens based on internal cash flows and seems to accord priority to reducing net debt.better bargaining on lease rentals and capex to be put in by the mall operator in the screens as the power shifts in favor of PVR-Inoxcontrol fixed costs better. The better cost structure has led to breakeven levels of occupancy being brought down by 150-200 basis points to ~20% from nine-12 months back. With further synergies to be exploited, we think this can head a little lower..Click on the attachment to read the full report:.PVR-Inox - ‘Animal’ Spirit To Rescue A Cricket-Impacted Quarter: ICICI Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

PVR-Inox - Structurally Better Placed; Near Term Soft: Nirmal Bang

The better cost structure has led to breakeven levels of occupancy being brought down by 150-200 basis points to ~20% from nine-12 months back.

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PVR-Inox - Structurally Better Placed; Near Term Soft: Nirmal Bang

The better cost structure has led to breakeven levels of occupancy being brought down by 150-200 basis points to ~20% from nine-12 months back.

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