PVR shares were trading almost flat on Friday at Rs 1,225.50 on the Bombay Stock Exchange (BSE) at around 12.52 p.m. after the multiplex chain operator reported 5 percent fall in net profit for September quarter (Q2), a day earlier, despite revenues increasing by about 17 percent.
The company hopes to benefit from the expected box office success of Karan Johar's "Ae Dil Hai Mushkil" to beef up revenues in the current quarter.
The Hindi film hit screens on Friday after facing political hurdles that pit the film fraternity against politicians, especially the Maharashtra Navnirman Sena (MNS).
PVR's consolidated net profit for the September quarter was Rs 29.13 crore, down 5 percent from Rs 30.70 crore in the corresponding quarter last year while total income rose 17 percent to Rs 554.21 crore as against Rs 474.61 crore in the year-ago period, according to the company's statements.On a standalone basis, net profit slumped 18 percent to Rs 26 crore.
Operating profit margin dipped to 16.8 percent from 18.4 percent in the September 2015 quarter.
The multiplex chain operator, which has about 557 screens across 121 properties with a capacity of 1.27 lakh seating capacity, saw a dip in contribution to revenues from top five films.
The share price of PVR has appreciated 19.6 percent based on its closing price of Rs 1,024 on July 1, 2016.
At one of its multiplexes (in Gurgaon), PVR is charging Rs 1,600 for a gold class ticket to watch "Ae Dil Hai Mushkil".
Highlights of September quarter
Top five movies contributed 46 percent to gross box office in Q2, FY 2017 as against 51 percent in Q2, FY2016.
Occupancy of top five movies in Q2, FY2017 was 40 percent as against 50 percent in Q2, FY2016.
The top five releases (for the company from a box office collection perspective) were "Sultan," "Dishoom," "Pink," "Rustom," and "Happy Bhaag Jayegi," but the occupancy rate for all the movies was below 50 percent.
People spent more on foods and beverages (F&B), while watching films at PVR halls, resulting in a 17 percent increase in F&B revenues to Rs 139.63 crore.
Entertainment Tax as a percentage of Net Box office was 29.4 percent in H1, FY2017 as against 26.7 percent in H1, FY2016.
The chain operator has opened 58 screens till date in the current fiscal.
The company has listed "Ae Dil Hai Mushkil" and "Shivaay," both released this Friday (October 28), as films in its "content pipeline."