PVR records consolidated net loss of Rs226cr in Q1FY21 as Covid-19 lockdown halted cinema biz

Consolidated EBITDA was squashed to Rs73cr in the latest period compared to Rs285cr a year ago same quarter.

Sep 15, 2020 01:09 IST India Infoline News Service

Gurugram-based film entertainment company, PVR faced Covid-19 heat during the first quarter ending June 2020 (Q1FY21) period as the cinema business was shutdown. In Q1FY21, PVR recorded a consolidated net loss of Rs226cr against a profit of Rs18cr in the corresponding period of the previous year. Consolidated EBITDA was squashed to Rs73cr in the latest period compared to Rs285cr a year ago same quarter.

Similarly, consolidated revenue from operations also witnessed massive contraction to Rs55cr in the quarter under review, compared to Rs887cr in the similar quarter of the previous year.

PVR in its financial report said, "Financial performance of the company for Q1, FY21 was impacted by the lockdown announced due to COVID-19 outbreak, which disrupted the company’s operations. Consequently, PVR had ‘nil’ revenues during the quarter from the core movie exhibition business. With 100% revenue decline, the company reported significant losses in Q1, driven by the continuing fixed costs."

Ajay Bijli, Chairman cum Managing Director, PVR Ltd said, "COVID-19 pandemic presents an unprecedented challenge to all businesses. With cinemas remaining closed, we shifted our attention to cost control during the  quarter. Our disciplined efforts on manging costs and liquidity significantly contributed to our ability to navigate the unprecedented challenges brought about by COVID-19. Government has now started taking measures to bring economy back on track and we hope that Cinemas are allowed to reopen soon."

Bijli added, "We are in constant touch with the Government for allowing cinema to reopen soon and we will ensure that we follow all regulatory guidelines required to ensure safety of all stakeholders."

In the latest quarter, PVR completed its Rights Issue for an amount of Rs300cr. The Issue was subscribed 2.24x which is the highest oversubscription for a rights issue in the last 15 years.

As of June 2020, PVR has Rs550cr of liquidity available including undrawn banking lines of Rs155cr which is sufficient to sustain its operations and meet all its obligations.

At around 1.40 pm, PVR stock was trading at Rs1290.55 per piece tumbling by 1.48% on Sensex. The stock has also touched an intraday low of Rs1273 per piece, resulting in a nearly 3% drop on Sensex so far. 

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