PVR shares jump 8% despite reporting Q2 loss of Rs 184 crore

The share price of PVR jumped about 8 percent in the morning trade on BSE on November 4, a day after the company announced its September quarter earnings.

PVR on November 3 said its consolidated revenue for the quarter ended September 30, 2020, was Rs 111 crore compared to Rs 979 crore during the corresponding period of last year, impacted by the outbreak of COVID-19 and lockdown during the quarter.

Consolidated loss after tax for the quarter was Rs 184 crore as compared to a profit of Rs 48 crore in the year-ago period. Consolidated EBITDA loss for the quarter was Rs 14 crore against a positive EBITDA of Rs 324 crore in the same period last year.

"PVR further strengthened its cost control measures resulting in 71 percent savings year-on-year (YoY) in total fixed costs excluding rent and CAM. monthly fixed cost excluding rent and CAM dropped to Rs 24 crore in the quarter as against Rs 86 crore in Q2FY20," the company said in a statement.

The company said results for the September quarter couldn't be compared to the year-ago period as temporary closures of cinemas and suspension of operations have had an impact on business operations.

"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 the re-opening of other states, specifically Maharashtra and Telangana so that business can gradually get back to normal," said Ajay Bijli, Chairman and Managing Director, PVR.

"We are hopeful that once the new content is released the business will gradually recover," Bijli added.