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In FY23, multiplex sales will reach a record high of Rs 6,000 crore as movie-going returns: CRISIL

PVR Cinema Hall

According to a recent assessment by ratings and analytics firm CRISIL, multiplexes are projected to treble their revenues this fiscal after the pandemic lows of the previous two years. 

According to the ratings company, multiplex operators in India might see revenues reach an all-time high of over Rs 6,000 crore in FY23, which is 13–15% more than the fiscal 2020 level.

According to CRISIL, Pent-up demand is primarily to blame for the surge as “more individuals queue up to see movies following the pandemic-forced hiatus”.

Theatrical visitation has increased as well thanks to blockbuster films like RRR and Brahmastra, which have drawn throngs of viewers to the big screen.

Even if occupancy returned to pre-pandemic levels in the first quarter of 2022, “multiplexes continue to feel the heat from OTT platforms” and this could cause a minor decline in occupancy for the entire fiscal year (FY23). 

According to the research, a complete improvement in operating margins may therefore be unlikely.

Naveen Vaidyanathan, Director of CRISIL Ratings, said, “Multiplexes have rebounded well from the pandemic setback and reported their highest-ever quarterly revenue and operating profit in the first quarter this fiscal. Occupancy has returned to the pre-pandemic level of ~32 per cent, riding on some big-banner releases.”

For companies like PVR, INOX, Cinepolis, and others, increased average ticket prices (ATP), which are up about 20% from pre-pandemic levels, as well as the addition of more screens across properties, are major drivers of revenue growth.

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