PVR Q3FY22 results: Net loss narrows to better-than-expected Rs 22 crore

Multiplex operator PVR on Friday reported a net loss of Rs 21.9 crore for the December quarter. The company had posted a net loss of Rs 136.7 crore for the corresponding period a year ago.

Its revenue increased to Rs 642.3 crore for the third quarter of the current financial year. For the year-ago period, the company's revenue had stood at Rs 63.4 crore.

Analysts in a CNBC-TV18 poll had estimated the company's quarterly loss at Rs 58 crore over revenue of Rs 528 crore.

PVR reported Rs 66.2 crore in earnings before itnerest, taxes, depreciation and ammortisation (EBITDA) for the October-December period. For the year-ago period, the company had registered an EBITDA loss of Rs 108.8 crore.

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PVR's EBITDA margin stood at 10.3 percent for the December quarter.

Analysts had estimated the company's EBITDA at Rs 63 crore and the EBITDA margin at 12 percent.

Consolidated total income during the period under review stood at Rs 709.71 crore as against Rs 320.13 crore in the year-ago quarter. "The impact of COVID-19 on cinema operations was the least in the Q3 FY22 as compared to the preceding quarters since the time the pandemic has hit the economy," PVR said.

"We got a few big theatrical releases after long 19 months during the quarter which helped business to bounce back sharply," the company said, adding the group was able to eliminate monthly cash burn and saw a quick return to profitability which reflects the strong business model and the affinity of consumers to come back.

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PVR Ltd Chairman cum Managing Director Ajay Bijli said, "The strength and agility of our business was demonstrated during the last quarter. The pace with which the business recovered from October to December, validates that as soon as new content was made available, our patrons came back to the cinemas."

The company, however, said the COVID-19 infections that started to increase from the last week of December leading to various restrictions had a negative impact on cinema operations. "Had the last week of December not been impacted by Omicron and the ensuing restrictions we would have closed with even better numbers for December," Bijli said.

PVR said, "We assessed the likely impact of the pandemic on our business and we believe it is not likely to impact the recoverability of the carrying value of our assets." "We believe that the pandemic may adversely impact the business in the short term but the long term drivers of our business are intact and we do not anticipate any material medium to long term risks to the business," the company added.