Its not a good opening for PVR Inox. The stock, which had closed yesterday at Rs.1464.45, opened much lower today at Rs.1448 and went down to hit a new 52-week low at Rs.1404. Its recouped a bit to Rs.1422 levels but it remains in the red.
The market is very disappointed with its earnings for Q4FY23 wherein its consolidated net loss more than doubled to Rs.333 crore v/s loss of Rs.105 crore (YoY). This is the first quarterly results after the merger.
The loss was despite a 34% (YoY) rise in revenue at Rs.1143 crore.
The management said that the poor numbers were on account of the considerable volatility in box office plus factors like underperformance of Hindi films and less number of Hollywood releases impacted. The company expects things to get better in FY24.
This apart, the company also said that it plans to shut down approximately 50 cinema screens over the next 6 months – most of the are either loss making, or housed in malls which have reached the end of their life cycle. The company has taken an accelerated charge of the depreciation in its books and written off the WDV of assets.