PVR - 1QFY2013 Result Update - Angel Broking

PVR reported a stellar performance in 1QFY2013 on the top-line and the bottom-line front. The company's top-line grew by an impressive 50.7% yoy to Rs.176.1cr. The OPM expanded by 135bp yoy, despite higher movie distribution charges, due to decline in staff costs and other expenditure. The adjusted PAT during the quarter stood at Rs.7.8cr (vs Rs.2.3cr in 1QFY2012). However, 1QFY2012 had an exceptional item of sale and lease back arrangement of Phoenix Mills property which had inflated reported profit to Rs.15.5cr.

Key Highlights: The movie exhibition segment recorded a robust 39.0% yoy growth to Rs.147.8cr due to good movie releases which led to a 17% yoy growth in footfalls to 6.2mn and a robust 32% yoy increase in ticket sales to Rs.92.7cr. However, the average ticket price remained flat y-o-y at Rs.162. Sale of food and beverages (F&B) registered a growth of 52% yoy to Rs.31.5cr on account of schemes such as flexi food prices. The advertisement income grew by 9.0% yoy to Rs.14.1cr.

During the quarter under review, Shanghai was released which led to a sharp increase in movie production and distribution revenue to Rs.23.0cr (vs 8.1cr in 1QFY2012). The bowling alley segment stood at Rs.7.3cr (vs Rs.4.0cr in 1QFY2012). The company opened new properties at Jallandhar and Ujjain.

Outlook and valuation: For FY2012-14E, we expect PVR to register a ~20% CAGR in its top-line, aided by seat additions and higher contribution from bowling alleys. At the current market price of Rs.178, the stock is trading at 11.4x FY2014E EPS. We believe the stock is richly valued and would prefer to wait for a better entry opportunity. Hence, we maintain our Neutral view on the stock.

Source : Equity Bulls

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