News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
GST - Goods and Services Tax »
 Filing your very first GSTR-9? Avoid these 8 common mistakes Tax tips 2019
 How to avoid credit mismatch while filing GSTR-9
 Extend GST annual return deadline
 GST Council meet on 21 June to focus on checking tax evasion
 Government introduces transition plan for filing returns under GST
 Here's everything you must know New GST return transition plan
 All You Need to Know About the New Monthly GST Return Filing System
 Government unveils transition plan for new GST return form
 Eight common mistakes to avoid while filing your GSTR-9 return
 ITR filing date may get extended as employers get more time to issue Form 16
 GST is a journey and government can make it smoother for honest taxpayers

Multiplexes to post a good show after GST cut: Analysts
January, 04th 2019

Lower GST and a pipeline of films high on the theatre-experience, in Hindi, regional languages and English, have prompted analysts to enhance the earnings outlook for leading multiplexes.

According to various estimates, analysts have revised their EPS estimates for PVRNSE -0.96 % and Inox LeisureNSE -0.93 % in the range of 8-15 per cent for FY20.

The government reduced the GST on tickets priced above Rs 100 to 18 per cent from 28 per cent. And for tickets priced below Rs 100, the GST is reduced to 12 per cent from 18 per cent.

Two possibilities emerge in this situation. Either multiplexes would pass on the benefit of reduced GST or they might raise ticket prices. In both situations, multiplexes stand to gain. Increasing average ticket prices - in the range of 5-10 per cent - would boost revenues. In the past three fiscals average ticket price has risen in the range of 2-6 per cent.

On the other hand, passing on the benefit of lower GST would boost footfalls, which would help increase food and beverages revenues and in-cinema advertising as more eyeballs allow theatre owners to negotiate better deals with advertisers. Analysts believe that for at least the next six months, multiplexes would pass on the benefit of GST, which would help increase footfalls.

Furthermore, footfalls are likely to rise in the coming months given the large number of theatre-experience films hitting the screens. Over the past few years, producers have been increasingly backing films that work largely on theatre experience or on the sheer strength of novelty of content (biographies, unique concepts, and films based on history or actual events). Producers have realised that audiences require a concrete reason to visit the multiplexes as watching films in theatres is gradually losing its relevance given the high costs and availability of other sources of engaging entertainment.

In 2019, the Hindi pipeline would include Manikarnika, Kesari, Takht, Uri: The Surgical Strike, Brahmastra, Panipat, Stree 2, and Taanaji: The Unsung Warrior. Hollywood films due for release this year include Avengers Endgame, Captain Marvel, Aladdin, Godzilla, X-men, and Once Upon Time in Hollywood.

On the valuation front, according to Bloomberg, the stocks of PVR and Inox Leisure are trading at EV/ EBIDTA of 12.5 and 9, respectively, based on FY20 earnings. This is quite attractive compared to the past threeyear average EV/EBIDTA of 17.7 for PVR and 14.5 for Inox.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Publishing Management System PMS News Management System Publishing Management System Development Online News Management System for media company custom Publishing management system development Survey management system Market Res

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions