PVR reported a consolidated net loss of Rs184cr in the quarter ended September 2020 (Q2FY21), compared to a profit of Rs48cr a year ago same period. However, on Wednesday, investors had a bullish tone in PVR stock. On Sensex, PVR surged by as much as 7.6% with an intraday high of Rs1186.85 per piece in early trade.
The company's consolidated revenues for the quarter, stood at Rs111cr as compared to Rs979cr during the corresponding period of last year, impacted by the outbreak of COVID-19 and consequent lockdown during the quarter.
Further, the company witnessed a consolidated EBITDA loss of Rs14cr as against a positive EBITDA of Rs324cr in the same period last year.
PVR in its audit report said, Financial performance of the company for Q2, FY 21 was impacted by the continued lockdown announced due to COVID-19 outbreak, which disrupted the company’s operations. Consequently, PVR had almost ‘nil’ revenues during the quarter from the core movie exhibition business with the exception of one property in Colombo. With ~100% revenue decline, the company reported significant losses in Q2, driven by the continuing fixed costs.
On the positive front, PVR has initiated a series of short-term and long-term measures to aggressively control costs as well as augment liquidity.
PVR further strengthened its cost control measures resulting in 71% savings YoY in total fixed costs excluding Rent and CAM. Monthly fixed cost excluding Rent and CAM dropped to Rs24cr in the quarter as against Rs86cr in Q2 FY20, the company said.
Ajay Bijli, Chairman cum Managing Director, PVR Ltd said “I am extremely pleased to report that most of our cinemas, which had shut down due to the pandemic in March have been allowed to reopen. We are eagerly waiting for re-opening of other states, specifically Maharashtra and Telangana so that business can gradually get back to normal. We are taking all possible precautions so that both our customers and employees feel safe while visiting their favourite cinema."
At around 12.39 pm, PVR was trading at Rs1137.75 per piece up Rs35.20 or 3.19% on Sensex.