Near-term uncertainty in demand, costs to keep PVR stock under pressure

While lower costs are positive, cash burn may remain high even after resumption

PVR’s June quarter performance was drab, on expected lines, as cinemas remaining closed during the lockdown.

India’s largest multiplex operator reported revenues of Rs 12.6 crore from movie production and distribution, food and beverage, and other income. Though costs have reduced, a collapse in revenues translated into a loss of Rs 116 crore at the operating level. With no clarity over re-opening of cinemas, following a washout in the September quarter too, focus has shifted to controlling costs in the near term. After a 72-per cent decline in fixed costs in the June quarter, thanks to cost savings on employees and