Why December quarter of FY24 is likely to be lacklustre for PVR Inox

Considering the dull prospects for Q3, sharp near-term upsides may be tough for PVR Inox

- Vineetha Sampath

The ICC Men's World Cup 2023 is expected to cast a shadow on PVR Inox Ltd's performance in the December quarter (Q3FY24). The release dates of big-ticket movies were rescheduled due to the mega sporting event which took place during 5 October to 19 November. This will weigh on occupancy and, hence, PVR Inox's Q3 profitability, even though the multiplex operator screened specific cricket matches to compensate for the limited number of movie releases.

Elara Securities (India) said occupancy levels in October - November were closer to 20%, a mere 60% recovery versus pre-covid. "Exhibitors break-even (Ebitda) at 18-19% occupancy levels and such a performance will negatively affect profitability in Q3FY24," the brokerage said in a 1 December report.