Latest news with #KaranTaurani
Time of India
16-07-2025
- Business
- Time of India
Karnataka's movie ticket price cap: Movie goers may have to pay just Rs 200; how it will hit multiplex chains like PVR-Inox
Karnataka cinema houses may have to implement major cuts in ticket prices as the state government is looking to introduce a price cap. The state government on Tuesday released a draft notification proposing a uniform cap of Rs 200, taxes included, on movie ticket prices across all theatres and multiplexes, according to an ET report. While this move could bring big relief for moviegoers, it will likely hit major cinema chains, including PVR-Inox, the report said. The southern state is a key market for PVR-Inox, accounting for 215 out of its 1,743 screens, roughly 12.3% of its national presence. Karnataka also contributes around 8% to Hindi box office earnings and 10% to overall revenue, according to Karan Taurani, media executive vice president at Elara Capital, told ET. PVR Inox will be affected as the average ticket price in the state currently hovers around Rs 260, and the proposed cap would mean a nearly 30% price cut. Taurani said that in case the move is implemented, it could bring down the movie house's consolidated average ticket price by 3.7%, dent headline revenues by 2.2% and reduce EBITDA by 1.8% over FY26–28. The impact would be felt most sharply in Bengaluru, where premium formats such as IMAX and 4D often charge weekend prices of Rs 600 to Rs 1,000. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: One simple trick to get internet without a subscription Techno Mag Learn More Undo A flat cap of Rs 200 could delay the return on investment for these high-end formats and deter further expansion in premium cinema offerings. 'Since distributor revenue is linked to net ticket collections, a 30% price cut would directly impact exhibitor earnings, especially in premium malls where high rentals and reduced ticket pricing may raise the occupancy breakeven threshold above the current ~18–20% per show,' Taurani was quoted as saying. As a result, operators may be forced to depend more on food and beverage sales to stay profitable. The draft rule, which follows a similar announcement in the March 2025 state budget, will now go through a 15-day public feedback window. The government will consider objections and suggestions before deciding whether to finalise the rule through a gazette notification. This isn't the first time Karnataka has tried to regulate cinema pricing. In April 2017, a similar ceiling was introduced but challenged in court. In 2021, the Karnataka High Court partially sided with theatre owners, allowing premium pricing for luxury formats like IMAX and recliner screens, the report said. This time, however, the draft does away with all such exemptions, suggesting a flat rate across all screen types and formats. 'While the government's intent is to make cinema more affordable and promote local language films, historical trends indicate that content quality plays a more critical role in driving footfalls than ticket pricing,' ET cited the executive. He also expects theatre chains to push back, possibly through legal action. Meanwhile, investor sentiment reflected the brewing concerns. Shares of PVR-Inox dipped nearly 1% in early trade on Wednesday on the BSE, touching a day's low of Rs 972.50, well below its 52-week high of Rs 1,748.25. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
16-07-2025
- Business
- Business Standard
Karnataka proposes ₹200 cap on movie tickets; PVR Inox faces revenue hit
The Karnataka government's move to cap movie ticket prices at ₹200 across all theatres and multiplexes in the state could weigh on the revenue and profitability of India's largest multiplex chain, PVR Inox Ltd. According to a draft notification issued on Tuesday, the government has proposed amendments to the Karnataka Cinemas (Regulation) Rules, 2014, setting ₹200 as the maximum ticket price per show, inclusive of entertainment tax, for all films, regardless of language or format. The proposal, under the Karnataka Cinemas (Regulation) (Amendment) Rules, 2025, is open to public feedback for 15 days. Karnataka a key market for PVR Inox Karnataka accounts for 12.3 per cent of PVR Inox's screen portfolio, with 215 of its 1,743 screens located in the state as of May 2025, Elara Securities' Senior Vice President Karan Taurani told CNBC-TV18 on Wednesday. The state contributes approximately 10 per cent to the overall box office collections and 8 per cent to the Hindi segment, with an average ticket price (ATP) of ₹260. A price cap at ₹200 would mark a 30 per cent drop in the average ticket price in Karnataka, which could lower the company's consolidated ATP by 3.7 per cent. Taurani estimates that such a decline may translate to a 2.2 per cent reduction in top-line revenues and a 1.8 per cent hit to Ebitda for PVR Inox over FY26-FY28. The move revives a pricing control debate last seen in 2017, when Karnataka introduced a similar ₹200 cap. That cap was later contested by the film exhibition industry and overturned by the Karnataka High Court in 2021, which permitted exceptions for premium formats like IMAX and 4DX. These formats currently attract prices between ₹600 and ₹1,000 on weekends in Bengaluru. Premium screens, franchises at risk Taurani cautioned that a blanket cap would undermine the economics of high-investment formats and potentially discourage future expansion under PVR Inox's franchise model. The pricing restriction could reduce returns for franchise partners and delay the recovery of capital in luxury screen formats. Since revenue-sharing with distributors is based on net ticket sales, a 30 per cent cut in pricing would also reduce earnings at the exhibitor level. The challenge is greater in premium malls, where high rental costs already push breakeven occupancy to 18–20 per cent per show. Operators may need to rely more on food and beverage sales to preserve profitability at the unit level. The draft amendment also proposes deleting Rule 146 from the 2014 rules, though specific details on the impact of this change remain unclear. Affordability vs content-driven footfalls While the government has positioned the proposed cap as a way to make movie-going more affordable and encourage regional film viewership, Taurani noted that content quality—not pricing—remains the primary driver of theatre footfalls. For the financial year ended March 31 2025, PVR Inox registered a sevenfold increase in consolidated net loss to ₹280 crore from ₹32 crore at the end of FY24. Meanwhile, consolidated revenue from operations fell 5 per cent to ₹5,780 crore from ₹6,107 crore.
Business Upturn
16-07-2025
- Business
- Business Upturn
Karnataka proposes Rs 200 movie ticket price cap — know how much PVR's business will be impacted
By Aditya Bhagchandani Published on July 16, 2025, 08:04 IST The Karnataka government has proposed capping movie ticket prices at ₹200 (tax inclusive) across all theatres and multiplexes, a move that could weigh on PVR-Inox's revenues and profitability, according to analysts. The draft notification, announced following Karnataka's March 2025 budget, applies to tickets for all languages and formats and is now open for public feedback for 15 days before the final order is issued. Why this matters to PVR Karnataka is a key market for PVR-Inox, accounting for 12.3% of its total screens (215 out of 1,743 as of May 2025). The state contributes around 8% to the Hindi box office and about 10% to overall collections, with the average ticket price (ATP) currently at ₹260. If the ₹200 cap comes into force, it would mean a nearly 30% reduction in ATP in Karnataka, translating to an estimated 3.7% decline in consolidated ATP, which could shave off about 2.2% of headline revenue and 1.8% of EBITDA for PVR-Inox over FY26–28E. Premium formats like IMAX and 4DX, which currently command weekend prices of ₹600–1,000, would also see margins eroded and extended payback periods under uniform pricing. Could this hurt PVR's growth? If implemented, the cap could also hurt PVR-Inox's expansion plans by lowering returns for franchise partners, particularly in premium malls where higher rents and reduced ticket prices could push breakeven occupancy rates beyond the current ~18–20% per show. The impact could force exhibitors like PVR to rely more heavily on food & beverage sales to offset weaker ticket revenues. What's next? Exhibitors may challenge the cap in court — a similar move in 2017 was partially overturned by the Karnataka High Court, which allowed higher pricing for premium formats. Karan Taurani of Elara Securities notes: 'The proposed cap is likely to dent earnings, but given the company's scale, the impact may be manageable if the courts allow flexibility for premium formats. We maintain an Accumulate rating on PVR-Inox with a target price of ₹1,100 per share while monitoring developments closely.' While the government aims to make movies more affordable, analysts argue that content quality, rather than ticket prices, is what truly drives footfalls. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Business Insider
29-06-2025
- Business
- Business Insider
FSN E-Commerce Ventures Ltd. (NYKAA) Gets a Buy from Elara Securities
Elara Securities analyst Karan Taurani maintained a Buy rating on FSN E-Commerce Ventures Ltd. (NYKAA – Research Report) on June 26 and set a price target of INR225.00. The company's shares closed last Friday at INR209.86. Don't Miss TipRanks' Half Year Sale Take advantage of TipRanks Premium for 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. In addition to Elara Securities, FSN E-Commerce Ventures Ltd. also received a Buy from Morgan Stanley's Sheela Rathi in a report issued on June 27. However, on the same day, Macquarie maintained a Sell rating on FSN E-Commerce Ventures Ltd. (NSE: NYKAA). The company has a one-year high of INR229.90 and a one-year low of INR154.90. Currently, FSN E-Commerce Ventures Ltd. has an average volume of 235.6K.
Time of India
16-06-2025
- Business
- Time of India
Quick commerce fires up record discounts with rivals getting quicker
ETtech Live Events The rapid expansion of online retailers Amazon and Flipkart in the crowded quick commerce sector is pushing discounting across platforms to record highs in an industry battling accelerating price becomes the primary differentiator for these apps with near similar user experience, intense discounting and attendant cash burn are likely to intensify further, according to multiple people in the know .This month, average discounts across categories rose to 20–25% on maximum retail price compared to below 10% two years ago across various quick commerce platforms, including for segments like dairy and groceries, the sources said."Rising competition is the reason for increasing discounts within quick commerce, today there are eight players," Karan Taurani, executive vice president at Elara Capital.'Today there are eight players, unless we see a convergence towards four-five players, this kind of discounting will persist. We had only 3-4 players earlier but now we are seeing the entry of more players including Flipkart and Amazon…I think discounting will persist for some time until the competitive intensity cools off,' Taurani addition to market leaders Blinkit Zepto and Swiggy 's Instamart , others such as Reliance Retail's JioMart, Flipkart Minutes and Amazon Now have also started building a presence in this are of the view that discounts are the highest in the personal care category rising to around 35% discounts on maximum retail price. Other products such as packaged foods, basic staples, home care, beverages also are discounted heavily. 'Dairy has the lowest discount (5%), understandable given it is a lowmargin category and hence, there is limited headroom. Prices vary significantly across players in fresh fruits & vegetables too, albeit we do not include it in our basket due to potential variations in product quality,' said a note by executives point out that with all competing firms being well-capitalised they are not focusing on profitability in the short term. ET had reported in February that the monthly burn for the quick commerce sector across companies had increased to Rs 1,300-1,500 crore – more than doubling in a few months. Burn refers to the rate at which a company spends cash. For the quarter ended March 31, Blinkit parent Eternal saw its net profit plummeting to Rs 39 crore from Rs 175 crore in the year ago period. Its Bengalurubased rival Swiggy's net loss for the quarter nearly doubled to Rs 1,081 crore. Both the companies increased spending on expanding their quick commerce businesses.'There is a massive headroom for growth in quick commerce…and the overall market is expanding as well. The attempt right now is to build a sticky customer base. A lot of effort is also going into building for tier-II and tier-III cities, where platforms are trying to get consumers to try quick commerce for the first time,' a senior quick commerce executive firm Morgan Stanley estimates the size of India's quick commerce sector at $8 billion in 2024, estimating it to expand to $28 billion by 2026 and $57 billion by Flipkart's Minutes, which currently has around 400 dark stores aims to expand its network to 800 micro warehouses for 10-minute deliveries by the end of this year. ET reported on June 13 that Amazon Now has gone live in select pincodes in Bengaluru with 10-15 dark stores on its network, and aims to expand to other cities such as Mumbai and Delhi-NCR as well. Early movers Blinkit, Zepto and Instamart are also expanding their during the company's quarterly earnings call in May, Akshant Goyal, CFO of Blinkit's parent Eternal, said the quick commerce platform will prioritise market share gain even at the cost of short-term per the Jefferies report, average discounts were also higher on bulk-buy offerings from companies like Zepto and Instamart, which operate the Super Saver and Maxxsaver programmes, respectively. Under these offerings, platforms offer greater discounts to users with larger basket sizes – typically over Rs 1,000. For the 10-minute delivery platforms, this results in cost savings in terms of fewer trips and reduced packaging expenses, while also increasing competitiveness with value retailers such as Dmart.
