PVR posted a loss for Q2FY21, albeit a lower loss than Q1, yet the stock rose over 7.5% to Rs.1186.85 and continues to remain in the green.
The company ended Q2Fy21 with a consolidated net loss of Rs.184 crore v/s profit of Rs.48 crore (YoY).
Its revenue fell by a huge 89% to Rs.111 crore, obviously impacted by the pandemic and the lockdown of theaters.
Cinemas were allowed to reopen 15 October onwards with 50% capacity, while Maharashtra theaters will start from 6th Nov. So far, 16 states and UTs, where PVR has presence, have permitted cinemas to restart operations. Out of total 831 screens of the company 575 plus have received permission to reopen.
Permits to reopen cinemas came in from the ministry of home affairs only at the end of September and the chain has notched up no operational revenue for the quarter except for the sale of F&B (food and beverage) from subsidiary Zea Maize and PVR Lanka, besides income from sale and distribution of movie rights from our subsidiary PVR Pictures.
The market is probably looking at the bigger picture of now things getting better. The company, in a TV interview said that it has managed to get rent waivers from most landlords for the period that it was shut. This and other measures helped it bring down fixed costs by 75-80%.