Due to the pandemic, tourism, hotels, and the cinema industry are the most affected industries. Now, as the pandemic is about to end and the lockdowns are lifted in most of the states, this is the best time to enter these types of stocks.
This article provides an in-depth comparison (PVR vs Inox) between the two biggest multiplex or film production and distribution companies in India. In this article, we have compared the business, financials, fundamentals of both PVR and Inox.
This will help you evaluate which one is better for investment. But before I proceed, please note that our analysis is only for educational purposes and not to provide stock tips. This article is to empower you with the right knowledge so that you can make an informed investment decision.
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PVR vs Inox A snapshot
PVR
Since its inception in 1997, PVR revolutionized the cinema business and the way people in the nation view and interact with films. PVR has emerged as an industry leader in the country. In terms of the number of screens, screens added in during a single year ( 87 screens in FY 2019-20 ), PVR has diverse streams of revenue apart from the movie, screening, including food, beverages sales, advertising, convenience fees, and movie distribution.
Through a well-conceived strategy and key acquisitions over the years, PVR has increased the number of screens to 846 expanding its presence across 176 multiplexes in 71 Indian cities and having a seating capacity of 1,80,000
Inox
One of India’s leading multiplex chains Inox leisure has set unmatched standards of luxury, service, and technology in the cinema exhibition industry.
Incorporated in 1999, Inox has a long history of innovation, introducing one of its kind experiences and processes that redefine entertainment. Inox has 648 screens across 153 properties in 69 Indian cities and has a seating capacity of 1,47,436.
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Growth opportunities: Screens in India
| YEAR | Single screens | Multiplexes |
|---|---|---|
| 2016 | 7031 | 2450 |
| 2017 | 6780 | 2750 |
| 2018 | 6651 | 2950 |
| 2019 | 6327 | 3200 |
From the above data, we can understand that from the past 4 years the single screen theaters are decreasing gradually. Whereas, multiplexes are increasing.
We can clearly say that people are choosing multiplexes over single screens and we can a very good growth in no. of multiplexes. There will be very good scope for the growth of multiplexes in the next 5 to 10 tears.
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Top 10 box office markets in 2019
| Country | Market share |
|---|---|
| U.S | 11.4 |
| China | 9.3 |
| Japan | 2.4 |
| U.K | 2.4 |
| South Korea | 1.6 |
| France | 1.6 |
| India | 1.6 |
| Germany | 1.2 |
| Mexico | 1 |
| Russia | 0.9 |
From the above data, we can clearly say that there is a lot of scope for growth in India. As compared to China and U.S, India is lagging with a big margin.
PVR vs Inox: Region-wise screens
| South | North | West | East | |
|---|---|---|---|---|
| PVR | 292 | 265 | 244 | 45 |
| Inox | 146 | 157 | 256 | 89 |
PVR: Region-wise presence
Inox: Region-wise presence
Inox screens by year
PVR vs Inox by size
PVR stands for Priya Village Roadshow. PVR is a film entertainment company in India. The company is started as a joint venture agreement between Priya exhibitors, private limited, and village roadshow limited in 1995, with a 60:40 ratio. It began its commercial operations in the year 1997.
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Inox is also a multiplex chain in India. Inox was founded in the year 1999.
| PVR | INOX | |
|---|---|---|
| Total cities | 71 | 69 |
| Total properties | 176 | 153 |
| Total screens | 846 | 648 |
| Total seats | 1.8 lakh | 1.44 lakh |
From the above data, PVR Has a presence in over 71 cities. Whereas, Inox has a presence in 68 cities. In that 71 cities, PVR has around 176 properties. Whereas, Inox has around 147 properties.
PVR has 845 screens in total. Whereas Inox has 626 screens and the Total seating capacity of PVR is 1.8 lakh and for Inox, the total seating capacity is 1.44 lakh.
From the above data, we can clearly understand that PVR is bigger than Inox, in terms of screens, presence, properties, and seating capacity.
PVR vs Inox: financials
| Financial year | PVR revenue in Cr | Inox revenue in Cr |
|---|---|---|
| FY 15-16 | 1913 | 1168 |
| FY 16-17 | 2182 | 1230 |
| FY 17-18 | 2365 | 1363 |
| FY 18-19 | 3119 | 1707 |
| FY 19-20 | 3452 | 1915 |
From the above data, we can see that PVR revenue has grown from 1913 crores in financial year 15-16 to 3452 crores in the financial year 19-20, with a CAGR of 18%.
Whereas, Inox revenue has grown from 1168 crores to 1915 crores in the last five years with a CAGR of 13%.
From the above data, we can understand that PVR has shown good revenue growth compared to Inox.
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PVR vs Inox: Segment wise revenue break up
| SEGMENT ( FY 19-20 ) | PVR | Inox |
|---|---|---|
| Box office collections | 1731 | 1105 |
| Food and beverages | 960 | 497 |
| Advertising | 376 | 179 |
| Others | 385 | 134 |
PVR revenue from Box office collections is 1731 crores, from food and beverages ( snacks, cool drinks ) 960 crores, from advertising, 376 crores, and from others, which include distribution of some movies and for distributing some branded snacks, the revenue from these segment is 385 Crores.
For Inox revenue from box office collections is 1105 crores, from food and beverages 497 crores, from advertising 179 crores, and from other segments 134 crores.
From the above data, we can clearly understand that for both PVR and Inox, the maximum revenue is from box office collections and food and beverages.
PVR vs Inox: PAT
| FINANCIAL YEAR | PVR PAT | Inox PAT |
|---|---|---|
| FY 15-16 | 98 | 81 |
| FY 16-17 | 96 | 31 |
| FY 17-18 | 134 | 115 |
| FY 18-19 | 189 | 133 |
| FY 19-20 | 131 | 141 |
From the above data, PVR has generated a PAT of 98 crores in the FY15-16. Whereas, in FY19-20 PVR generated a PAT of 131 crores. PVR has shown good growth in PAT in the last five years. But the PAT was declined in FY19-20 when compared to FY18-19.
PVR has generated PAT at a CAGR Of 6% in the last five years and stood at 131 crores during financial year 19-20.
Inox has generated a PAT Of 81 Crores In Financial Year 15-16, Whereas In Financial 19-20 It Generated A PAT Of 141 Crores.
Inox Has shown consistent growth in its PAT. Only in the financial year16-17 Inox PAT was fallen, other than that Inox has shown consistent growth in its PAT with a five-year CAGR of 15%.
By comparing both stocks we can clearly understand that INOX performed well. PVR is generating more revenue than Inox, but Inox is generating more profit than PVR. By this, we can understand that Inox is maintaining a good profit margin compared to PVR.
PVR vs Inox: Important and key parameters
Till now you have learned about the financials of both PVR and Inox and the comparison between them. Now, let’s Compare both PVR and Inox with key and important parameters.
After comparing these key and important parameters you can get a clear-cut idea of which company is best.
PVR vs Inox: Footfall
Footfall means no of people coming to their multiplexes to watch movies.
| FINANCIAL YEAR | PVR ( FOOTFALL IN CR ) | INOX (FOOTFALL IN CR ) |
|---|---|---|
| FY 15-16 | 7 | 5.3 |
| FY 16-17 | 7.5 | 5.4 |
| FY 17-18 | 7.6 | 5.3 |
| FY 18-19 | 9.9 | 6.2 |
| FY 19-20 | 10.2 | 6.6 |
From the above data, we can understand that in the financial year 15-16, PVR has a footfall of about 7 crores, and it has increased to 10.2 crores in the financial year 19-20.
Whereas, Inox footfall in the financial year 15-16 is about 5.3 crores, and it has increased to 6.6 crores in the financial year 19-20.
PVR footfall is more when compared to Inox. it’s because as we have already seen in the above comparison of PVR vs Inox by size, that PVR has more screens compared to Inox. But anyway PVR is showing good growth compared to Inox.
PVR vs Inox: Occupancy
| FINANCIAL YEAR | PVR ( OCCUPANCY IN % ) | INOX ( OCCUPANCY IN % ) |
|---|---|---|
| FY 15-16 | 34% | 29% |
| FY 16-17 | 33% | 28% |
| FY 17-18 | 31% | 26% |
| FY 18-19 | 36% | 28% |
| FY 19-20 | 35% | 28% |
Occupancy means, if there are 100 seats in a theater, if the occupancy is 30%, means 30 seats are occupied.
Higher the occupancy ratio, the higher the profits. Because even if the occupancy ratio is 10% or 100%, the cost of electricity or the cost of screening the movie or labor cost is the same for both. So higher the occupancy ratio, the higher the profits.
From the above data, we can understand that PVR is maintaining an occupancy ratio between 31 to 36% in the last five years.
Whereas, Inox is maintaining an occupancy ratio of about 26 to 29% in the last five years. Even PVR has more screens and seats, PVR is maintaining a higher occupancy ratio compared to Inox. Which is a good thing.
PVR vs Inox: Spending per head ( SPH )
| FINANCIAL YEAR | PVR ( SPH IN RS ) | INOX ( SPH IN RS ) |
|---|---|---|
| FY 15-16 | 72 | 58 |
| FY 16-17 | 81 | 62 |
| FY 17-18 | 89 | 66 |
| FY 18-19 | 91 | 74 |
| FY 19-20 | 99 | 80 |
| Fy 20-21 | 96 | 77 |
Spending per head means, how much money each person is spending other than ticket cost. Like on cool drinks, snacks, etc. This is where they get a high-profit margin. Higher the spend per head, the higher the profits.
From the above table, the average spend per head of PVR is consistently increasing over the last five years. In the financial year 19-20, the average spending per head is 99 rupees, which means other than ticket cost, the average spending per head on food and beverages who are visiting PVR is about 99 rupees.
For Inox also the average spending per head is consistently increasing from the past five years. And SPH is at 80 rupees in the financial year19-20.
By comparing both PVR and Inox, we can clearly say that PVR is performing very well in this parameter compared to Inox.
PVR vs Inox: Advertising revenue
| Financial year | PVR (in Cr) | Inox (in Cr) |
|---|---|---|
| FY 14-15 | 177 | — |
| FY 15-16 | 215 | — |
| FY 16-17 | 252 | 96 |
| FY 17-18 | 297 | 139 |
| FY 18-19 | 354 | 137 |
| FY 19-20 | 376 | 179 |
PVR vs Inox: Food & beverages revenue
| Financial year | PVR (in Cr) | Inox (in Cr) |
|---|---|---|
| FY 16-17 | 579 | 284 |
| FY 17-18 | 625 | 306 |
| FY 18-19 | 858 | 436 |
| FY 19-20 | 960 | 497 |
PVR vs Inox: average ticket price
| Financial year | PVR ( in Rs ) | Inox ( in Rs )_ |
|---|---|---|
| FY 16-17 | 196 | 178 |
| FY 17-18 | 210 | 193 |
| FY 18-19 | 207 | 197 |
| FY 19-20 | 204 | 200 |
| FY 20-21 | 180 | 170 |
Conclusion
In this article, there is no comparison of financial ratios like ROE, PE, ROCE, EPS. Because when we compare their business we can understand better rather than comparing just financial ratios. After analyzing the business, we can clearly understand that PVR is performing slightly better compared to Inox. But remember both Inox and PVR are good stocks. So before taking your decision like where to invest, please do your research on financial ratios and then invest.
