InvestorQ : Why did PVR report such a steep loss in the Jun-20 quarter?
Mary Joseph made post

Why did PVR report such a steep loss in the Jun-20 quarter?

Arusha Ray answered.
9 months ago

Multiplex operator PVR reported net loss of Rs.226 crore for the Jun-20 quarter. This was largely because the film exhibition business remained closed for most part. In the corresponding Jun-19 period, PVR had reported a net profit of Rs.17.53%.

Revenue from operations for the Jun-20 quarter stood at a mere Rs.12.70 crore compared to Rs.880.39 crore in the Jun-19 quarter. The lockdown in malls and multiplexes had a huge impact on the performance of PVR.

Although it did manage to cut its expenses and renegotiate contracts with mall owners, there was a still a large fixed cost component. For example, the company's total expenses fell to Rs.397 crore in Jun-20 quarter as against Rs.859.10 crore in FY-19 quarter.

PVR is in the midst of a number of cost-cutting measures to mitigate the impact on business. This includes reduction in employee benefits, salary cuts and headcount reduction apart from seeking waiver of rentals and maintenance charges from owners. It has managed to bring down the cash burn significantly due to these measures but the top line remains a concern.