PVR fell 1.51% to Rs 1,142 after the cinema chain operator reported consolidated net loss of Rs 74.61 crore in Q4 March 2020 compared with net profit of Rs 46.75 crore in Q4 March 2019.
Consolidated net sales dropped 23% to Rs 645.13 crore in Q4 March 2020 over Q4 March 2019, impacted by the outbreak of COVID-19 in the last month of the quarter. Consolidated pre-tax loss stood at Rs 70.19 crore in Q4 March 2020 as against a pre-tax gain of Rs 74.21 crore in Q4 March 2019. Current tax rebate stood at Rs 31.80 crore in Q4 March 2020 as against current tax expenditure of Rs 18.67 crore in Q4 March 2019. The Q4 result was declared after trading hours yesterday, 8 June 2020.
Consolidated EBITDA for the quarter was at Rs 189 crore as against Rs 169 crore in the same period last year, witnessing a growth of 12% YoY (year-on-year). EBITDA margin for the quarter stood at 29%. Results for quarter and year ended 31 March 2020 are not strictly comparable with results for quarter and year ended 31 March 2019 on account of adoption of IND-AS 116 "Leases".
Beginning 11 March 2020, the company started closing its screens in accordance with the order passed by various regulatory authorities and within a few days most of the cinemas across the country were shut down. Since cinema exhibition is the only business segment, the company is currently not generating any significant operating revenue or cash flow from operations. The firm is taking stringent measures to address the situation by implementing cost reduction strategies and conserving liquidity on the balance sheet. As on 31 March 2020, the company had almost Rs 316 crore in liquid assets. Further company is considering steps to further augment its liquidity position through fresh borrowings and equity issuance.
The board of directors of the company has given an in-principle approval for a rights issue for an amount of upto Rs 300 crore as "confidence capital" to shore up capital base.
The company has taken one-time writeoff of perishable inventory of Rs 1.83 crore in March 2020, on account of spoilage due to closure of cinemas pursuant to COVID-19.
The government has come out with phase wise re-opening of activities in areas outside the containment zones. In these guidelines cinema halls have been kept in 3rd phase of re-opening, where dates of re-opening will be decided based on assessment of the situation. PVR is in continuous engagement with all regulatory authorities and hopes to receive the necessary permissions for restarting opening in the near future.
The company said it continues to incur committed cash outflows, including employee salary pay-outs, other overheads as well as payments for older working capital. This has and will have significant negative impact on profitability and liquidity during lockdown and even thereafter till business comes to normalcy. Further once the cinemas are re-opened, PVR may not be able to run cinemas at normal capacity utilisation levels on account of social distancing measures that cinemas may be required to follow as well as health concerns that the patrons may have. On account of this, the company's revenue and cash flow generation may be impeded even once it is allowed to restart operations.
PVR is a film entertainment company, which is engaged in the motion picture exhibition in cinemas. Currently, the company operates 845 screens in 176 properties in 71 cities across India and Sri Lanka.
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