PVR reports net loss of Rs 153 cr in Sept quarter; revenue at Rs 120 cr

Leading multiplex chain operator PVR Ltd on Friday reported narrowing of its consolidated net loss to Rs 153.13 crore for the second quarter ended September 30, 2021.

The company had posted a net loss of Rs 184.06 crore in the July-September quarter a year ago, said PVR in a BSE filing.

Its revenue from operations was up nearly threefold to Rs 120.32 crore during the quarter under review. It was Rs 40.45 crore in the corresponding quarter last fiscal when the screening business was completely closed last fiscal.

PVR's total income was also up over twofold to Rs 275.21 crore as against Rs 110.61 crore of the corresponding quarter.

Its total expenses were at Rs 460.68 crore, up 18.31 per cent in Q2/FY 2021-22 as against Rs 389.37 crore.

"The Q2 results continued to be impacted on account of COVID-19," said PVR adding that "we continued our strategy on keeping the monthly cash burn rate low through various cost-saving initiatives and keeping adequate liquidity on our balance sheet".

According to PVR, the July-September 2021 quarter was marked by cinema reopening from July 30 onwards. As of date, the company is permitted to operate all its screens across all states and UTs in India and Sri Lanka, including Kerala, which has allowed operations to start from October 25, onwards.

"While there are continuing restrictions around capacity caps, the timing of operations and vaccination requirements, those are also gradually getting lifted as the COVID-19 cases in the country continue to remain under control.

"Certain states such as Telangana, Rajasthan, Karnataka, Andhra Pradesh, Punjab and Gujarat have already relaxed capacity restrictions," said PVR in a post-earnings statement.

PVR Chief Financial Officer Nitin Sood said markets such as South India have so far indicated that viewers are returning to cinema screens as it is having close to pre-pandemic numbers there.

"If you look at our average ticket price (ATP), it is already at the pre-pandemic level and our average F&B (food and beverages) realisation is currently 30 per cent higher than the pre-pandemic.

"That could also be as we are opening up and do not have a full audience. But, we are reasonably confident that it would settle at significantly higher than the pre-COVID-19 level," Sood told PTI.

PVR's ATP stood at Rs 203 and the average spending of F&B was at Rs 128, which is around Rs 331 spending per person on his list to screens.

However, he also added that though the north region market is on its way to recovery but in the western region, it has now started to go for recovery.

"From Diwali onwards, we expect a strong recovery and business is expected to bounce back strongly," he added.

During the quarter, PVR continued with its strategy for keeping operating costs low and maintaining adequate liquidity.

"The company was able to successfully conclude discussions with landlord partners for rental waivers/discounts in respect of 80 per cent of its properties and achieved savings of 75 per cent. The total available liquidity on the balance sheet was over Rs 700 crore as of September 30, 2021," said PVR.

So far, the company has launched 13 new screens during the year.

Over the outlook, Sood said that in the next festive quarter, several blockbusters will be released in Hindi, English and other Indian languages.

"We would stop burning cash as soon as Hindi films begin and in the next two-three months, we would have a huge pipeline of content and I think we should get back to the pre-pandemic level," Sood added.

Shares of PVR Ltd on Friday settled at Rs 1,627.60 apiece on the BSE, down 2.06 per cent as compared to the previous close.