InvestorQ : How were the latest quarter results of PVR for the Dec-20 period?
Lavanya Subramanian made post

How were the latest quarter results of PVR for the Dec-20 period?

Anamika Sodhani answered.
6 months ago

PVR Ltd reported consolidated net loss of Rs.49.21 crore for the Dec-20 quarter in contrast to a profit of Rs.36.26 crore in the Dec-19 quarter. However, this is not strictly comparable as 2020 has been a COVID year and multiplexes had to be shut for most part of the year. However, losses considerably narrowed from the sequential quarter levels.

It may be recollected that in the Sep-20 quarter, PVR had reported a net loss of Rs.184 crore as the outbreak of Coronavirus and lockdowns had severely hit the business. In comparison, the December quarter loss numbers were better-than-expected even as the other income component came to the rescue even as core multiplex revenues were under pressure.

At the end of the day, it was the cost-saving measures initiated by the company in the tough conditions that helped PVR in navigating the tough time during the pandemic. During this period, PVR managed to achieve a significant reduction in fixed cost during the period of lockdown, which came to the rescue in the quarter.

PVR had also negotiated rentals with landlords and had also gone ahead and negotiated lower rentals with landlords. During the pandemic it had also negotiated rental forfeiture for malls shut. PVR will be raising Rs.800 crore to take care of the liquidity shortfalls in the system.