Brahmastra, Laal Singh Chaddha and Avatar – films that can determine the fortunes of INOX and PVR
- March 2022 turned out to be the best months for PVR and INOX Leisure due to stellar movie releases.
- Companies can still replicate the success of March due to the strong pipeline of films in place for this year.
- “2022 or 2023 will be one of the best financial years for the Indian film industry,” INOX CEO Alok Tandon said.
After stellar activity in March, cinemas are hoping to make a comeback – but they need films that can draw audiences away from OTTs and TVs.
This is the view of five brokerage firms – ICICI Securities/Direct, Motilal Oswal, Prabhudas Lilladher and ShareKhan. They believe good movies can help them replicate the March success that came with super hits like the controversial Kashmir Files; Rajamouli’s RRR, Sanjay Leela Bhansali’s period drama Gangubai Kathiawadi, followed by KGF 2 in April.
“They witnessed a march – which was the best in history, led by outstanding film performances,” ICICI Direct said in its view on PVR and INOX. March steps accounted for half of the January-March quarter steps in theaters.
But these two companies need more than a good month to turn things around. According to ICICI Direct, a strong recovery in attendance and sales of these publicly traded theater companies will be driven by “high content slate lines”. If all goes well, she estimates that these two companies will be able to cross their pre-covid profits in the current financial year.
These companies are in desperate need of “revival-worthy” movie releases. Despite good revenue growth, INOX and PVR are still in the red – recording losses of ₹239 crore and ₹478 crore in the fourth quarter, respectively.
The Khan-Karan Factor
The next phase of turnaround may come from another set of long-delayed, high-profile movies with A-list stars. pandemic.
Aamir Khan has Lal Singh Chaddha, it’s a remake of Tom Hanks’ Forrest Gump. Salman Khan is also promising another film from his stable of formulas – called Kabhi Eid Kabhi Diwali. King of Khans – Shah Rukh Khan is also releasing a movie after four years called Pathan.
The fact that these Khan films are “highly anticipated” may help generate footsteps. INOX CEO Alok Tandon spoke of an influx of good releases in FY23 in a conversation with Business Insider India.
“2022 or 2023 is going to be one of the best financial years for the Indian film industry... I feel like we have a very, very strong lineup,” Tandon said. He also confirmed that March was their best month yet and that the film industry had been operating at limited capacity for the past few years due to Covid-19.
Then other bankable stars like Ranveer Singh and Ranbir Kapoor also have releases this year – at least one of them is funded by Dharma Productions, helmed by Karan Johar.
Movies that can turn PVR, INOX Leisure profits from red to green
|upcoming movie||Planned release||Cast|
|Samrat Prithviraj||June 2022||Akshay Kumar, Sanjay Dutt, Sonu Sood|
|The Return of Villain Ek||July 2022||John Abraham, Arjun Kapoor, Aditya Roy Kapur, Disha Patani|
|Laal Singh Chaddha||August 2022||Aamir Khan, Kareena Kapoor|
|brahmastra||September 2022||Ranbir Kapoor, Alia Bhatt, Amitabh Bachchan, Nagarjuna, Mouni Roy|
|Avatar: The Way of the Water (English)||December 2022||Zoe Saldaña, Sigourney Weaver, Stephen Lang, Cliff Curtis|
|Kabhi Eid Kabhi Diwali||December 2022||Salman Khan, Pooja Hedge, Kriti Sanon, Aayush Sharma|
|Pathan||January 2023||Shah Rukh Khan, Deepika Padukone, Salman Khan, Dimple Kapadia, Ashutosh Rana, John Abraham|
|Rocky Aur Rani Ki Prem Kahani||February 2023||Ranveer Singh, Alia Bhatt, Dharmendra, Shabana Azmi|
|Luv Ranjan’s next film starring Ranbir Kapoor||March 2023||Ranbir Kapoor, Shraddha Kapoor|
I really need a super hit
The many high-profile releases must meet expectations with “superhits”, to get companies back to their finances and pre-Covid steps.
“Deterioration in content quality could affect traffic and advertising revenue growth, failure to take adequate price increases at the right time could affect revenues given the increased cost of inputs and the inability maintain cost reduction initiatives that may impact operating profitability,” reads a report by ShareKhan.
Many high-profile releases also fell flat in the months leading up to March. There was a big buzz around Ranveer Singh and Deepika Padukone-starrer 83 – which was based on the 1983 Cricket World Cup which India won. However, it disappointed film distributors as it was declared a theatrical flop. Singh’s Jayeshbhai Jordaar also fell short of his expectations.
Kangana Ranaut’s Dhakkad, Akshay Kumar’s Bachchan Pandey, Prabhas’ Radhe Shyam also failed to impress the audience. Apart from 83, all other films were released after India overcame the third wave of Covid-19.
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