Near-term uncertainty in demand\, costs to keep PVR stock under pressure

Near-term uncertainty in demand, costs to keep PVR stock under pressure

While lower costs are positive, cash burn may remain high even after resumption

Topics
PVR Cinemas | Indian multiplexes | multiplex stocks

Ram Prasad Sahu  |  New Delhi 

With revenues absent due to the lockdown, the June quarter results of India’s largest multiplex operator were expectedly weak. The company reported revenues of Rs 12.6 crore from movie production and distribution, food and beverage and other income.

Though costs have come down, collapse of revenues translated into a loss of Rs 116 crore at the operating level. Given that theatres were shut down in the September quarter and there being no clarity on when they would reopen, the focus has shifted to controlling costs in the near term. After a 72 per cent decline in fixed costs ...
First Published: Tue, September 15 2020. 18:23 IST
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