key points:
- Multiplex operator PVR on Tuesday reported consolidated net loss of ₹184 crore in the quarter ending 30 September as against net profit of ₹48 crore in the year-ago period.
- On Tuesday, PVR’s scrip on NSE closed 0.2% higher at ₹1,108.
Owing to pain inflicted by Covid-induced lockdown, multiplex operator PVR on Tuesday reported consolidated net loss of ₹184 crore in the quarter ending 30 September as against net profit of ₹48 crore in the year-ago period.
The consolidated revenue from operations declined significantly to ₹40.4 crore as against ₹973 crore a year ago.
On Tuesday, PVR’s scrip on NSE closed 0.2% higher at ₹1,108.
The Union government has allowed multiplexes, cinema halls and theatres to reopen from October 15, adhering with guided Standard Operating Procedures. However, the Ministry of Health and Family Welfare has left it to the states to take a final call on the matter.
“Pursuant to the MHA guidelines, several state governments have permitted cinemas to restart operations, whereas permission from few state governments are still awaited. We have undertaken various cost saving initiatives to mitigate the adverse impact of COVID-19 on the business, which inter alia includes reduction in employee costs by temporary salary cuts and headcount reduction, seeking waivers of rental and maintenance charges during lockdown from our landlords and significant reduction in all other overhead expenses during the period of lockdown. With these actions, management has been able to bring down the cash burn significantly during the lockdown period. The Group believes that this pandemic is not likely to impact the recoverability of the carrying value of its assets. The Group is closely monitoring the developments and possible effects that may result from the present pandemic on its financial condition, liquidity and operations and working to minimize the impact of this unprecedented situation,” the company said in an exchange filing.
“Consequent to the COVID-19 pandemic, the Group has invoked Force Majeure clause in various lease agreements for its cinema properties and is in discussion with landlords for a complete waiver of rent expenses during the lockdown period. The Group has been successful in getting relief from most landlords, whereas in some cases discussions are still under progress,” the company further said.
