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Jan 2, 2012

PVR - Business

P/E is 8 times. Dividend yield is 0.79%, MCap is 329 Cr. Price is 127 when blogged.

This is very visible and glittery business, but how profitable is it? Not so much. Sales increased from 200 Cr to 400 Cr in 5 years until FY11. net profit increased from 10 to 16 Cr in the same period. NPM is a paltry 4%. Debt has increased from 60 Cr to 160 Cr in the same period. The company pays 16 Cr in interest for the debt. 

South Indians are movie buffs - this can be observed from the over 70% occupancy in this region. 

How it earns:
Movie exhibition in 142 screens across 18 cities. (Ticket sales) - 70%
Movie distribution(Revenue sharing)/Co-production  - 20%
Food and beverage sales - 10%
Advertisement - marginal

How it spends:
Distribution
Employees
Rent

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