PVR Inox's Q1 FY25 Financial Performance Declines, Receives 'Strong Sell' Rating

Despite being a midcap company in the films and entertainment industry, PVR Inox has recently faced negative financial performance in the quarter ending June 2024. This has resulted in a ‘Strong Sell’ stock call by MarketsMOJO.

According to the financial results declared on July 19, 2024, PVR Inox’s net sales for the quarter were at Rs 1,190.70 crore, which is a significant decrease of 22.0% compared to the average net sales of the previous four quarters. This indicates a very negative trend in near term sales.

The company’s profit before tax less other income (PBT) for the quarter was at Rs -266.80 crore, a decrease of 432.3% compared to the average PBT of the previous four quarters. This shows a very negative trend in near term PBT.

Similarly, the profit after tax (PAT) for the quarter was at Rs -178.70 crore, a decrease of 2133.8% compared to the average PAT of the previous four quarters. This also indicates a very negative trend in near term PAT.

PVR Inox’s operating profit to interest ratio was at its lowest in the last five quarters, indicating a deteriorating ability to manage interest payments. The company’s operating profit and operating profit margin were also at their lowest in the last five quarters, showing a decline in efficiency.

Overall, PVR Inox’s financial performance for the quarter ending June 2024 has been negative, resulting in a ‘Strong Sell’ stock call by MarketsMOJO. The company’s profitability has also decreased, creating lower earnings for shareholders.