Multiplex operator PVR Ltd on Wednesday reported a consolidated net loss of Rs 289.12 crore in the quarter ended on March 31, 2021, as the company continued to be impacted by the COVID-19 pandemic. The company had posted a net loss of Rs 74.49 crore in the same quarter of the last fiscal.
Total income during the period under review stood at Rs 263.26 crore against Rs 661.78 crore in the corresponding quarter a year ago, PVR said in a regulatory filing. PVR said results for the quarter and year ended March 31, 2021, are not comparable with results for the quarter and year ended March 31, 2020, as the operations were severely impacted due to COVID-19 induced lockdowns, staggered re-openings, social distancing requirements, limited content flow and low consumer confidence.
“FY 2020-21 was one of the toughest years for the multiplex industry and the company was able to successfully navigate the challenges on account of COVID-19 through a continuous focus on reducing fixed costs and keeping adequate liquidity on the balance sheet,” it added.
PVR said even though there were no major Bollywood or Hollywood movie releases in Q4 FY’21, the Southern film industry which saw new movie releases showed a strong recovery. With the resurgence of the second wave of COVID-19 since April 2021 and consequent shutdown of cinemas, the company said it has again started taking all necessary measures to manage its costs and preserve liquidity.
PVR Chairman-cum-Managing Director Ajay Bijli said the company believes its business will bounce back stronger than ever once things start to normalise in the face of mass vaccinations that are being rolled out. PVR said as on date, none of its cinemas are operational due to lockdowns implemented by state governments. As per PVR, even after cinemas are re-opened, its business will continue to be impacted.
“We may not be able to run our cinemas at normal capacity 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, our revenue and cash flow generation may be impacted even when we fully resume operations,” the company said.
PVR said it continues to incur committed cash outflows, including employee salary pay-outs, other overheads as well as payments related to debt and working capital. The multiplex major said it has been able to achieve a significant reduction in the fixed cost during the period of lockdown in FY21. PVR’s fixed costs — rent, personnel costs, electricity and water charges and other overheads — reduced by 63 per cent in FY21 to Rs 635.80 crore as against Rs 1,714.07 crore in FY20.
The company opened 13 new screens in the previous fiscal year as they were already under fit-out prior to lockdown. “Since the beginning of the pandemic, we have not taken any fresh handovers of the project and all additional capex plans for new screens have currently been put on hold,” the company said.
Shares of PVR Ltd settled 1.17 per cent higher at Rs 1,323.05 apiece on BSE.
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