This was from screener.in and their concall transcripts (also available on screener)
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Please read about Ind AS 116 Leases. Long term + short term debt is the actual debt payable. Lease liability is created on liabilities side and Right of use asset on asset side. This was done to stop hiding of commitments as they used to take it off balance sheet
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Relevant article with key data points. Looks like the content from Hollywood movies may not add much value in FY24-25. PVR’s strategy to therefore focus more on South aligns with the movie watching trend of South. Muted Hollywood content will therefore continue to challenge potential growth opportunities. Will Indian movie content alone uplift revenue opportunities?
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Disclosure: Invested
Summary-
a)No commercials, just films: PVR Inox adopts ad-free movies amid declining theatre footfalls.
b)Cutting down the length of the ads slotted before a movie begins on the big screen from 35 minutes to 10 minutes, the company is looking to add extra shows.
c) This new product by PVR Inox has been launched across 40 luxury properties of the multiplex chain in Delhi, Mumbai, Bengaluru, among others, effective from April 1.
Seems 1Q FY2025 is going to be affected due to poor performance of Bollywood movies, ongoing IPL season and lack of Hollywood content.
Disclosure- Not invested
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A116 In very simple words @RahulSingh you can have a look at it
Alright, imagine you have a toy car that you really like, but you have to pay to play with it every month.
Now, imagine you tell your friend, “Hey, I’ll pay you every month to play with your toy car.” That’s like a lease.
Now, before, people could hide these payments, so it looked like they didn’t owe any money. But that wasn’t fair because they were promising to pay money later.
So, now, with this new rule called Ind AS 116 Leases, they have to write down how much they promised to pay. It’s like writing it in a special book so everyone knows they owe this money.
They write down the money they owe (lease liability) on one side of the book, and they also write down the toy car they can play with (right of use asset) on the other side of the book.
This way, everyone knows about the promise to pay and the fun toy car they can play with.
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I think you are very wrong in saying that it was a commodity business. It’s the farthest thing possible from commodity. It’s all about comfort and value-add
Since 2023 has been theatres haven’t seen any big release across the film industry Hollywood to a small industries like Malayalam only star movie released in Last 7 to 8 months is Kalki By Prabhas
But the new turnaround for the movie fraternity is coming from the August 2024, until 2026 first half is what we can see at the ground.
Some of the big releases that are on the way in the next 1.5 years Which has the potential to be as successful in the theatres from Respective industry
1.Stree 2
Greatest of all time - Tamil
Devara part one By NTR - Multiple language
Joker sequel - English
Kanguva - Tamil
Bhairati Ranagal - Prequel - Kannada
Barroz - Malayalam
Bunkingham murders - Hindi
Kantara 2
Salaar 2
Kalki 2
Avatar 3
Sitare Zameen par
Pushpa 2
Welcome 3
Houseful 5
Sigham again
Ramayana
Toxic
Spirit
Some of the movies that comes to mind that can be the successful in their industry And I have left many such movies.
In the next 1.5 years, every industry who has stardom has their one or the other release All three khans , Ranveer Singh, Ranbir Kapoor
Rajinikanth Ramcharan NTR
Alluo Arjun
Pawan Kalyan
Vijay
Dulquer Salmaan
Surya
Yash
Sudeep
Prabhas
For the first time in Indian history There are so many merging opportunity happening between the industries
For example Previously, only Malayalam or the Kannada, the people used to see their own language movies And respective actors used to work in their industry only
But for the first time, all the industries, actors and viewers are merging .
Example :
Ranbir Kapoor - Yash - Ramin djwadi
NTR - Saif Ali Khan
Salman Khan - Attlee
Hrithik Roshan NTR - In war2
Like this, there are so many actors and the movie productions are collaborating each other with other industries, which could bring the people from across the India
Most of the releases that going to happen in the next 1.5 year is either a sequel Or the prequel Of a franchise
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I do believe that good set of movie releases may uplift the financial performance for a few quarters but is this a good long term investment??
It appears that at least some portion of people have moved towards OTT, these are not metro folks or the folks from cities where theater chains exist. The people who visit these theaters, who don’t think about the high prices of F&B are different, and they will exist, but I think, one question that can be asked is, are these patrons regular moviegoers or visit occasionally, if they visit from time to time, will the gap be filled with ordinary folk, who stay away from F&B, and are visiting to have a pleasant theater experience, also due to discounts of some sort (if any). Sales will give the clarity and judgement, of course.
The last 8 quarters’ sales are not smooth, maybe because of content not good enough, I don’t know, maybe they will pick up with high profile releases, I don’t know.
One complaint that I have come across are the charges of F&B. If indeed they make a hole in the pocket of who are complaining, I am sure, they will control their hunger or thirst and not shell out for F&B, which looks like form a major share in the revenue. Or maybe who watch here don’t mind these prices. My point is that, ticket sales may increase, but I am not sure of the F&B sales.
And as for the long term is concerned, if big size TVs become affordable, and a more faster internet reaches every household, maybe more and more people will have the theater experience from their homes. Unless one is dying is see something in particular, for the most part, this is just entertainment. Even if it is not understandable, being a foreign language it is entertaining, and if the content is available in regional languages, entertainment even from Hungary will suffice. So, technology has the power to change this consumption, which is not necessarily the case with something like FMCG.
No position, just some thoughts.
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