PVR INOX Ltd. share price target

Higher Food and Beverage income drove the profits... Revenue grew marginally in Q1FY19 on lower ATP growth Q1FY19 revenue grew at ~ 8%YoY mainly attributed to lower ATP growth and lower advertisement income. Net ticket revenue and F&B; collections registered a growth of 12% and 23% respectively while advertisement revenue grew by 7% YoY. Footfalls also improved by 8% YoY growth with occupancy registering a higher rate (36.1%). No big hits from Bollywood lowered the admits, being one of the reason for lower revenue growth in this quarter. The share of Bollywood movies stood at 48% vs 58% in Q1FY18...

PVR's Q1FY19 result was a beat to our forecast as regards EBITDA and EPS. This was mainly driven by higher growth in footfalls and advertisement revenue vs. our forecast and a YoY decline in repairs & maintenance cost. Outcome of the PIL as regards allowing outside F&B; and news of risks from government interfering with pricing of F&B; weighs on the valuation of PVR in the near term. We believe that in case of a court process is followed multiplex players are on a strong footing. However, the timeliness of the outcome remains uncertain. While we fine tune our EBITDA and EPS forecast for FY19/20E, given the uncertainty...

ICICI Securities Ltd | Retail Equity Research Q1FY19 revenues came in at | 696.3 crore, up 9.9% YoY and marginally above our expectation of | 690.8 crore, on account of better-than-expected ATP, which came in at | 217 (vs. our expectation of | 216) and footfalls that came in at 22.7 million (mn) (8.1% YoY) driven by higher share of Hollywood movies vs. Inox that had reported 1.1% YoY decline in footfalls. The spend per head (SPH) grew 8% YoY to | 94 crore, in line with our expectations. Net...

PVR reported revenue growth of 9.4% YoY on back of higher Net box office collection and better F&B; revenue. EBITDA margin improved 211bps YoY to 19.7% due to lower overhead expenses due to GST credits. We expect occupancy levels to improve over the next two quarters helped by a strong Hindi content pipeline. PVR has corrected by almost 16% since the F&B; announcement and is currently trading at inexpensive valuations of 10x/9x based on our FY20/FY21 EV/EBITDA estimates. We upgrade PVR to an...

Maharashtra intends to allow outside food and beverages inside multiplexes from August 1, 2018 (as announced by Food & Civil Supplies Minister in state legislature). The comment has come in the background of a public interest litigation (PIL) filed earlier (media link) challenging the ban on packed food, water bottles inside cinema halls on the grounds that it violates fundamental right to life of medically vulnerable persons & senior citizens. The Bombay High Court in its ruling in April, 2018, reiterated that patrons cannot be unilaterally prohibited from bringing their own food & water bottles inside...

PVR Ltd owns and operates multiplexes across 19 States and UT's with a total of 625 screens. Major income segments for them are Box office (Ticket revenue), Food & Beverage and Advertisement income. Q4FY18 revenue grew at healthy rate of ~19% on a YoY basis while PAT grew by 1700%(YoY) owing to better than expected operating leverage. Added 13 new screens in Q4FY18 while average occupancy stood at 31.5% slightly higher than our expectations. Average Ticket Prices (ATP) witnessed a ~10%YoY growth and Food &...

ICICI Securities Ltd | Retail Equity Research Q4FY18 revenues came in at | 584.9 crore, up 21.2%YoY and better than our expectations of | 560.7 crore on account of the buoyant performance of films like Padmavat, Raid, Sonu Ki Titu ki Sweety as well as strong early collections of Baaghi 2. Footfalls were up 4.4% YoY at 17.4 million, slightly higher than estimates of 2.9% growth. Spend per head (SPH) grew 11.5% YoY to | 87. Net box office collections came in at | 312.4 crore, up 18.2% YoY, also aided by...

Consol. revenue grew 21% YoY to INR5,849m (in-line), primarily led by a 9% YoY increase in the average ticket price (ATP) to INR206, partly offset by a 2% YoY dip in footfall to 15.6m. Consol. EBITDA doubled YoY to INR944m (21% beat), with the margin expanding ~650bp to 16.1% (280bp beat). PAT stood at INR262m (est. of INR59m) v/s INR1m in 4QFY17. For FY18, revenue grew 10% to INR23,341m (in-line), EBITDA increased 28% to INR4,018m (6% beat) and PAT rose 30% to INR1,248m (21% beat).

sales, 2) 6% on ad revenues and 3) 10% on F&B; revenues. ATP/SPH growth was healthy at 10%/12% yoy, partially attributed to premium screen additions and price hikes in renovated screens at key locations. The management delivered on its 20% ad growth guidance for FY18. The management remains confident of adding 90+ screens in FY19. But, we continue to remain conservative and project 66 additions in FY19. After record high capex of Rs3.5bn in FY18, the company has raised capex guidance for FY19 to Rs4-4.5bn. Our footfalls growth assumptions stand at 5%/9% for FY19/20E, as we expect revival in...

Q3 was largely in line with expectations. Limited box-office success led to lower footfalls (down 2%) and occupancy (~29% vs. 32% YoY) despite ~7% increase in screens. However, this was compensated by healthy operating matrix performance, as ATP^ improved 6.5% YoY