Receive up-to-the-minute news updates on the hottest topics with NewsHub. Install now.

Good show: Experts feel GST cut on movie tickets makes PVR, Inox lucrative

24 December, 2018 3:30 AM
96 0
Good show: Experts feel GST cut on movie tickets makes PVR, Inox lucrative

Analysts believe that the move by the government gives cinema owners the flexibility of pricing mechanism, which is a positive.

They believe that the move by the government gives them flexibility of pricing mechanism, which is a positive.

GST on movie tickets costing more than Rs 100 has been reduced to 18 percent from 28 percent, while tickets lower than Rs 100 has been reduced to 12 percent from 18 percent. The announcement was made on Saturday after the GST council meeting.

“We believe that reduced GST would be a big positive for both PVR and Inox Leisure. The GST on average ticket price (ATP) is likely to come lower by 9-9.2% for both the companies,� an analyst with IDBI Capital said in a statement.

Further, the expert also said that the impact of lower GST means hike in revenue and EBITDA estimates for these companies.

Source: moneycontrol.com

Share in social networks:

Comments - 0