PVR today opened at a loss of almost 3.5%, going down further by 7% to Rs.1662.95 as the market is pretty disappointed with its Q1FY20 performance.
The company posted a 69% (YoY) drop in consolidated net profit at Rs.16 crore though revenue was up 26% at Rs.880 crore.
Total expenses were up sharply from Rs.620 crore to Rs.859 crore, mainly led by finance cost, which jumped up 99% to Rs.131 crore. This includes an amount of Rs.10 crore due to accounting adjustment made pursuant to IndAS-115 for income received in advance with respect to long-term agreement signed by the PVR and SPI Cinemas with online ticketing aggregators. The company had acquired 72% stake in SPI Cinemas for about Rs 633 crore, in an all-cash deal in 2018.
As of June 30, 2019, PVR operates 785 screens in 67 cities across the country.
Its equity is at Rs.467 crore and EPS stands at Rs.3.46 (FV of Rs.10).