Net sales during the quarter slumped 98.6% year-on-year (YoY) to Rs 12.70 crore. Pre-tax loss stood at Rs 341.92 crore in Q1 FY21 as against a pre-tax profit of Rs 27.96 crore in Q1 FY20.
“Results for quarter ended 30th June, 2020 are not comparable with results for quarter ended 30th June, 2019 as the current quarter is impacted by temporary closures of cinemas and suspension of operations,” the company said in a statement.
PVR said that the company had undertaken a series of short-term and long-term measures including temporary pay cuts, workforce reductions, suspension of third party contracts, and other temporary and permanent cost structure changes to control costs as well as augment liquidity.
It managed to control its fixed cost with monthly fixed cost at Rs 32 crore, lower than approximately Rs 150 crore fixed cost in Q1 of FY 19-20. Consequently, the firm was able to manage its liquidity amidst these challenging situations.
During the quarter, PVR also successfully completed its rights issue for an amount of Rs 300 crore. The issue was subscribed 2.24 times.
The company has approximately Rs 550 crore of liquidity available including undrawn banking lines of approximately Rs 155crore which is sufficient to sustain its operations and meet all its obligations.
Commenting on the results and performance, Ajay Bijli, chairman cum managing director, PVR, said: "COVID-19 pandemic presents an unprecedented challenge to all businesses. With cinemas remaining closed, we shifted our attention to cost control during the quarter. Our disciplined efforts on manging costs and liquidity significantly contributed to our ability to navigate the unprecedented challenges brought about by COVID-19.
Government has now started taking measures to bring economy back on track and we hope that cinemas are allowed to reopen soon. We have taken all the measures to ensure the safety and wellbeing of our patrons and employees. We are in constant touch with the Government for allowing cinema to reopen soon and we will ensure that we follow all regulatory guidelines required to ensure safety of all stakeholders. We look forward to welcoming back our patrons to the PVR experience in a clean, safe and healthy environment."
PVR is a film entertainment company, which is engaged in the motion picture exhibition in cinemas. Currently, the company operates 845 screens in 176 properties in 71 cities across India and Sri Lanka.
On a year-to-date (YTD) basis, the stock has tumbled 31.31% while the benchmark S&P BSE Sensex has declined 5.63% during the same period.