PVR's net profit plunges to Rs 16 crore due to rising expenses

Multiplex cinema operator PVR Limited's consolidated net profit fell to Rs 16.18 crore on revenue of Rs 880.39 crore in the April to June quarter over Q1 FY19.

The company had posted a net profit of Rs 52.15 crore for the same quarter a year ago. Its total income during Q1 FY20 stood at Rs 887.16 crore as compared to Rs 700.53 crore in the year-ago period.

Significantly, PVR's total expenses in the June quarter stood at Rs 859 crore, up from Rs 771 crore in January to March quarter and Rs 620 crore in the April to June quarter of 2018.

This includes an amount of Rs 9.71 crore due to accounting adjustment made pursuant to Ind AS-115 for income received in advance with respect to long-term agreement signed by the PVR and SPI Cinemas with online ticketing aggregators.

PVR said the results for this quarter are not comparable with the June quarter of the previous fiscal due to acquisition of south India-based SPI Cinemas. In August 2018, PVR had announced acquisition of 71.69 per cent stake in SPI Cinemas for about Rs 633 crore in an all-cash deal.

The company acquired Cinemax in 2012 and taken over DT Cinemas in the year 2016. PVR now operates 785 screens in 67 cities across the country and ranks as the largest film exhibition company in India.

It has organised its operations into three business segments: movie exhibition, movie production and distribution & others.

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