PVR surged 7.38% to Rs 1295.70 amid bargain hunting after recent steep losses.
The bargain hunting emerged after shares of PVR slumped 36.92% in 15 trading sessions to Rs 1,206.60 on Monday, 23 March 2020, from its close of Rs 1,912.75 on 28 February 2020.
Based on current market price, the stock is still down 38.91% from its 52-week high of Rs 2,121 hit on 20 February 2020. The recent selloff in PVR shares was triggered by the closure of movie theaters across India by orders of state governments to contain the spread of Novel Coronavirus (Covid-19).
Meanwhile, PVR announced during in early trade today, 24 March 2020, that ratings agency CRISIL has placed its rating on the long-term bank facilities and debt instruments of PVR on 'Rating Watch with Negative Implications'.
The rating action follows the closure of movie theaters across India to contain the spread of Covid-19. While the present closure is valid until 31 March 2020, it could be extended if the pandemic worsens. Prolonged closure may significantly impact credit profiles of the film exhibition industry, including PVR, CRISIL said in a statement.
Currently, PVR has liquidity (cash and bank balance, undrawn committed bank lines, and other liquid investments) in excess of Rs 250 crore, which should sufficiently cover its curtailed operating costs as well as debt servicing for the next few months. PVR is looking to further augment its liquidity to enhance the cushion, the CRISIL report said.
CRISIL said it will remove the ratings from watch and take a final rating action once there is clarity on resumption of operations. The rating continues to reflect PVR's strong market position and well-established brand, healthy operating efficiency, and a significantly improved financial risk profile. These strengths are partially offset by exposure to risks inherent in the film exhibition business.
PVR's consolidated net profit slipped 34.3% to Rs 36.34 crore on a 8.6% jump in net sales to Rs 915.74 crore in Q3 December 2019 over Q3 December 2018.
PVR is a film entertainment company, engaged in the motion picture exhibition in cinemas. The company has organized its operations into three business segments: movie exhibition, movie production & distribution and others like bowling, gaming and restaurant.
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