Buy PVR: Exhibition business PAT, at INR 80 mn, ahead of estimate: Edelweiss

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PVR – BUY
n Exhibition business PAT, at INR 80 mn, ahead of estimate
PVR’s Q3FY11 exhibition business revenue and PAT stood at INR 1,032 mn and INR 80
mn (against our estimate of INR 1,000 mn and INR 67 mn), respectively. Y-o-Y,
exhibition business revenues rose 5% and PAT dipped 6%. Film distributor’s share as a
percentage of revenues decreased 30bps Y-o-Y. Q3FY11 EBITDA and PAT margins for
exhibition business stood at 20.5% and 7.8%, respectively.
n Occupancy at 28%; ATP up 5% Y-o-Y
The company enjoyed 28% occupancy in Q3FY11 against 37% in Q3FY10 and 30% in
Q2FY11. Footfalls increased 2% to 5.2 mn from 5.1 mn in Q3FY10. ATP for the quarter
grew at 5% over Q3FY10 (from INR 159 to INR 167). F&B spending per head and
advertising & royalty income increased 3% and 35%, Y-o-Y, respectively. The company
is expected to start operations at 24 more screens over the next 4 months.

n Disappointing quarter for movie production and distribution segment
In Q3FY11, the company’s movie production and distribution segment reported revenue
of INR 303 mn against INR 151 mn in Q3FY10 and INR 290 mn in Q2FY11. Segment
EBIT level loss stood at INR 178 mn against a profit of INR 9 mn in Q2FY11 and a loss of
INR 41 mn in Q3FY10. The quarter was impacted as a result of the poor performance of
“Khelein Hum Jee Jaan Sey”. Bowling business generated revenue of INR 34 mn with an
EBIT margin of 14.2%.