PVR shares slip 5% as company reports net loss of ₹74.6 crore in Q41 min read . Updated: 09 Jun 2020, 01:43 PM IST
- PVR reported a net loss of ₹74.61 crore for the March quarter compared to a net profit of ₹46.75 crore in the year ago period
- The company said its results for year ended March 31 were not comparable year-on-year on account of acquisition of SPI Cinemas
MUMBAI: Shares of multiplex chain operator PVR Ltd fell as much as 4.6% intraday after it reported a loss in the March quarter as the film exhibition business was impacted because of covid-19 pandemic and the subsequent lockdown.
At 12:50 pm, the PVR stock was at ₹1124 down 3.06% from its previous close, while the benchmark index, Sensex gained 0.35% to 34491.96.
PVR reported a net loss of ₹74.61 crore for the March quarter compared to a net profit of ₹46.75 crore in the year ago period. Revenue from operations during the quarter stood at ₹645.13 crore against ₹837.63 crore in the corresponding quarter a year ago.
The company said its results for year ended March 31 were not comparable year-on-year on account of acquisition of SPI Cinemas.
Beginning March 11, 2020, the company started closing its screens in accordance with the order passed by various regulatory authorities and within a few days most of our cinemas across the country were shut down. PVR said in a statement.
Since the beginning of the calendar year, shares of PVR have fallen 40.67% compared to a 15.92% decline in the benchmark index. But since 18 May, PVR shares have risen 51% compared 16% rise in the benchmark index.
For April and May, when there was complete lockdown, the shares of PVR fell 14.52% and 10.79 respectively. The benchmark index, rose 14.42% in April and fell 3.84% in May.
In a filing to the exchanges on Monday, PVR sthe board on Monday has approved to raise ₹300 crore through rights issue.
Analysts at Motilal Oswal said in a note to clients “Once cinemas are allowed to open, the company’s revenue and cash flow might remain subdued as cinemas may not be allowed to operate at normal capacity utilisation due to social distancing norms,PVR has one-time perishable inventory write-offs of ₹1.83 crore in March 2020 on account of spoilage due to closure of cinemas."
Cinemas are in the third phase of the Central government’s guidelines for reopening of lockdowns. The dates of the third phase would be decided after assessment of the situation.