Key Insights:

PVR 2nd Quarter FY20 Result was a beat on most fronts: Consol. revenue grew significantly by 37% YoY to INR9.7b, mainly driven by healthy screen addition (touched the vital mark of 800 screens) and a robust line-up of movie releases.

EBITDA grew 57% YoY to INR1.9b, with the margin expanding 250bp YoY. PAT too was up by an impressive 93% YoY to INR0.7b

Valuation and view: A multitude of factors - including its healthy growth prospects, strong competitive positioning, continuous increase in ticket prices and bright opportunity to grow ad revenue - justify premium valuations.

PVR’s tax rate will remain ~35% for at least 2 years as it utilizes MAT credit to reduce actual cash tax outgo. PVR continues to leverage all growth levers, including ticket price through experience upgrades, improved F&B portfolio, successful convenience fee partnerships and use of judicious acquisitions to build presence across country. PVR remains one of the best plays on premium consumption.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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