PVR INOX (PVRINOX) Q4 03/04 earnings summary

Executive summary

• FY04 delivered record admissions of 3.4 million, up from 2.99 million, and management cited 27% net-revenue growth despite a subdued film-industry year.

• EBITDA-like profit before interest, depreciation and tax rose to Rs 880 lacs from Rs 729 lacs; net profit fell to Rs 155 lacs from Rs 187 lacs, mainly due to the phased Gurgaon multiplex opening and initially higher film-hire costs.

Financial highlights

• Total income was Rs 6,116 lacs versus Rs 5,472 lacs; operating income was Rs 5,896 lacs versus Rs 5,314 lacs.

• Profit before tax was Rs 263 lacs versus Rs 274 lacs; net profit after tax was Rs 155 lacs versus Rs 187 lacs.

• Basic EPS was Rs 1.23 and diluted EPS Rs 1.22, versus Rs 1.84 for both measures in FY03.

• Concessions sales rose 26% to Rs 1,105 lacs from Rs 869 lacs; average candy-bar spend per patron increased 11%.

Outlook and guidance

• Five projects totaling 32 screens were scheduled to open in FY05 across Bangalore, Mumbai, Hyderabad and Delhi; planned year-end screen count was nearly 55.

• Plaza, Connaught Place, and Faridabad cinemas opened in May 2004 and were operating above 70% occupancy; directors expected improved FY05 performance.

• Further projects were signed in Mumbai, Delhi and Indore, with additional opportunities pursued in several Indian markets.

• Borrowing cost was expected to fall below 9% in FY05, from about 10% in FY04.