PVR reports Q1 net loss of Rs 219.55 cr due to Covid induced lockdown

Leading multiplex chain operator PVR Ltd on Thursday reported a consolidated net loss of 219.55 crore for the first quarter ended June 2021, due to a hit on its film exhibition business amid Covid-induced lockdowns.

The company had posted a net loss of Rs 225.73 crore in the April-June quarter a year ago, said PVR in a BSE filing.

Its revenue from operations was at Rs 59.39 crore during the quarter under review. It was Rs 12.70 crore in the corresponding quarter last fiscal.

PVR's total expenses were at Rs 417.06 crore in Q1/FY 2021-22.

"Covid-19 continued to adversely impact the operations and financial performance of the company in the first quarter. The second wave of Covid-19 surprised everyone with its rapid spread of infection, which led to localised lockdowns and curfews announcements by various state governments. Our entire cinema network was shut down, in a staggered manner, in April 2021 and continues to remain shut till date," said PVR in a post earning statement.

As the Covid-19 situation normalises in the country, various state governments have restarted economic activities, including the re-opening of cinemas, it added.

"As of July 29, 2021, 12 states and two UTs in India and Colombo, Sri Lanka, where PVR has a presence, have allowed cinemas to restart operations with restrictions around timings and other social distancing requirements. These states/UTs account for 526 screens across 111 properties," said PVR.

The company is looking to restart operations, in a gradual manner, from July 30, 2021 onwards.

During the current financial year, PVR had availed additional borrowings of Rs 200 crore under the government's ECLGS (Emergency Credit Line Guarantee Scheme) scheme.

"This has further strengthened the liquidity position of the company. As on June 30, 2021, the company had total liquidity of Rs 850 crore (including undrawn sanctioned credit lines)," it said.

Consequent to the spurt of second wave, PVR has initiated discussion with its landlords for complete waiver of rental and common area maintenance (CAM) charges during the lockdown period as announced by various governments.

"Since most of the discussions are currently under progress and are likely to be completed over next few months, we will recognise these concessions/rebates in accordance with the applicable accounting standards," said PVR.

Pending settlement with landlords, the PVR group has accounted for CAM charges amounting to Rs 32.46 crore in the statement of profit and loss for the quarter ended on June 30, 2021.

Commenting on the results, PVR Chairman cum Managing Director Ajay Bijli said as an organisation, its priority during the last quarter was to vaccinate all our employees and the company has achieved the target.

"As the Covid situation continues to improve in the country with the increasing pace of vaccination, I am confident that the cinema business will bounce back strongly,"he said adding "the content line up across Bollywood, Regional Hollywood movie industry is exciting and I am sure it will entice customers to step out of their homes and enjoy the movies on the screen."

Shares of PVR Ltd on Tuesday settled at Rs 1,360.30 apiece on the BSE, up 1.82 per cent, from the previous close.