PVR posts Q3 net loss of Rs 49 cr

The cinema chain reported a consolidated net loss of Rs 49.21 crore in Q3 December 2020 compared with net profit of Rs 36.26 crore in Q3 December 2019.

Revenue from operations slumped 95% to Rs 45.40 crore in Q3 December 2020 over Q3 December 2019. The announcement was made during market hours today, 15 January 2021.

PVR's other income surged to Rs 274.73 crore in Q3 December 2020 from Rs 8.15 crore in Q3 December 2019. PVR in its notes to accounts said that it has invoked Force Majeure clause in various lease agreements owing to COVID-19 pandemic for its cinema properties, for a complete waiver of rent expenses during the lockdown period. The company said it has been successful in getting relief from majority of landlords, whereas in some cases discussions are still in progress. The company thus followed a prudent practice and has recognized the rebates/concessions with applicable accounting standard.

PVR posted a pre-tax loss of Rs 72.91 crore in Q3 December 2020 as against pre-tax profit of Rs 58.33 crore in Q3 December 2019. The consolidated adjusted EBITDA loss for the quarter ended December 2020 was Rs 197 crore as against a positive adjusted EBITDA of Rs 315 crore in the same period last year.

The company said that it has taken significant steps to mitigate the adverse impact of COVID-19 on business. It has resorted to temporary salary cuts across various levels in the organisation during the period of lockdown, reduced headcount by way of layoffs / retrenchment and deferred on the decision of increment. PVR has reached settlements with landlords for 88% of cinemas for complete or partial waiver for the lockdown period. PVR has reduced overheads by suspending contracts of housekeeping and security and curtailing non-essential expenses.

The company has significantly reduced its capex outlay during the lockdown with minimal capex spends on projects that have been in advanced stage of construction. The company is continuously evaluating the evolving situation before it recommences its capex program. PVR said that these efforts resulted in fixed cost reductions of 63% in Q3 December 2020 as compared to Q3 December 2019.

Commenting on debt service obligations, PVR said, "The company has reasonable liquidity to meet all its debt and interest obligations for next few months and in continuous engagement to augment it further by raising resources to keep sufficient liquidity available."

Shares of PVR were trading 2.39% higher at Rs 1469.30. PVR, a theatre chain operator, is the market leader in terms of screen count in India.

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