How has been the historical performance of PVR Inox?

Revenue and Operating Income Trends

Examining the net sales figures, PVR Inox saw a steady increase from ₹3,085.56 crores in March 2019 to a peak of ₹6,107.10 crores in March 2024. However, the fiscal year ending March 2021 reflected a sharp decline to ₹280.01 crores, a direct consequence of the COVID-19 pandemic and associated restrictions on cinema operations. The company’s revenue rebounded strongly in the following years, reaching ₹5,779.90 crores by March 2025, signalling a recovery trajectory though still slightly below the pre-pandemic peak.

Total operating income mirrored this trend, with no other operating income reported across the years, indicating reliance solely on core business activities. The operating profit margin (excluding other income) fluctuated significantly, dropping to a negative margin of -119.61% in March 2021, before recovering to 26.67% by March 2025. This recovery highlights improved operational efficiency and better cost management as business conditions normalised.

Profitability and Margins

Profitability has been a challenge for PVR Inox in recent years. The company posted a profit after tax (PAT) of ₹190.52 crores in March 2019, which turned negative during the pandemic years, with losses peaking at ₹747.62 crores in March 2021. Although losses narrowed to ₹279.60 crores by March 2025, the company has yet to return to profitability. Earnings per share (EPS) followed a similar pattern, declining from a positive ₹38.48 in March 2019 to a negative ₹28.47 in March 2025.

The PAT margin also reflected this volatility, swinging from a healthy 6.14% in 2019 to a low of -267.21% in 2021, before improving to -4.86% in 2025. Despite the losses, operating profit (PBDIT) excluding other income remained positive from March 2022 onwards, indicating that core operations are stabilising even as interest and depreciation costs weigh on net profitability.

Cost Structure and Expenditure

PVR Inox’s cost structure reveals significant expenditure on manufacturing and other operating expenses. Manufacturing expenses rose from ₹701.93 crores in 2019 to ₹1,178.00 crores in 2025, while other expenses also increased from ₹1,221.30 crores to ₹1,906.90 crores over the same period. Employee costs have steadily increased, reflecting expansion and operational scale, rising from ₹337.26 crores in 2019 to ₹686.00 crores in 2025.

Total expenditure excluding depreciation remained substantial, peaking at ₹4,297.00 crores in 2024 before slightly declining to ₹4,238.30 crores in 2025. Despite these costs, the company managed to maintain positive operating profits, underscoring effective cost control measures post-pandemic.

Balance Sheet and Financial Position

The company’s balance sheet shows a marked increase in total assets from ₹7,222.89 crores in 2020 to ₹15,673.00 crores in 2025, driven by significant investments in fixed assets and capital work in progress. Net block assets nearly tripled from ₹2,881.30 crores in 2020 to ₹8,899.40 crores in 2025, indicating aggressive expansion and capacity enhancement.

Shareholders’ funds have grown from ₹1,480.22 crores in 2020 to ₹7,051.50 crores in 2025, supported by reserves accumulation despite recent losses. Long-term borrowings have fluctuated but remained elevated, with ₹919.80 crores reported in 2025, reflecting ongoing leverage to fund growth. Current liabilities have also increased, with trade payables and other current liabilities rising in line with business scale.

Cash Flow and Liquidity

Cash flow from operating activities has shown a strong recovery, rising from a negative ₹412 crores in 2021 to ₹1,966 crores in 2025. This improvement highlights better working capital management and operational cash generation. Investing activities consistently reflect outflows due to capital expenditure, while financing activities have seen net outflows in recent years, indicating debt repayments and reduced external funding.

Closing cash and bank balances improved to ₹522 crores in 2025 from ₹178 crores in 2020, providing a healthier liquidity buffer. The net cash inflow of ₹129 crores in 2025 further supports the company’s improving cash position.

Summary and Outlook

PVR Inox’s historical performance reflects the severe impact of the pandemic on the cinema and entertainment sector, with sharp declines in revenue and profitability during 2020 and 2021. However, the company has demonstrated resilience through a strong recovery in sales and operating profits in the last two years. Despite ongoing net losses, improving margins and cash flows suggest stabilisation of core operations.

Asset expansion and increased shareholder funds indicate confidence in long-term growth prospects, although elevated borrowings and liabilities warrant cautious monitoring. Investors should weigh the company’s recovery momentum against the challenges of returning to sustained profitability in a competitive and evolving market environment.

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