PVR narrows Q4 loss to Rs 105 crore, plans 120-125 new screens in FY23

PVR Ltd reported a consolidated loss of Rs 105 crore for January-March, despite revenue doubling during the quarter as the impact of COVID-19 lockdowns continued to linger.

Still, the losses narrowed from Rs 289.2 crore reported in the corresponding period of the previous year.

Indian multiplex companies were among the hardest hit during the pandemic due to lockdowns and forced shutdowns. However, financial numbers for the fourth quarter show they are now recovering.

This is the first earnings announcement by PVR, India's largest multiplex operator, after the company announced plans of a merger with INOX Leisure in March.

Consolidated total income grew to Rs 579.7 crore during the quarter from Rs 263.3 crore a year ago.

"During the month of March, the company has booked a forex loss on loans extended to PVR Lanka due to the sudden devaluation of the local currency…Excluding these losses the company has achieved EBITDA margin of 22.5% for the month of March," the company said.

The company may not have released margins for the full quarter as parts of the country were under lockdowns during January and February to curb the spread of COVID-19.

"These restrictions were gradually relaxed and were done away with by the end of February. New content releases which had stopped as soon as restrictions were announced started to regularly release from the last week of February," the company said.

The company opened 15 new screens in 2021-22, and plans to open 120-125 more in the currant fiscal year.

OTHER KEY HIGHLIGHTS

1) For the fiscal 2021-22, consolidated revenue nearly doubled Rs 1,657.1 crores from Rs 749.4 crore in the preceding last year.

2) For 2021-22, losses were at Rs 488.5 crore, down from Rs 748.2 crore in the previous year.

3) Reported highest ever full year average ticket price of Rs 235.

4) As on date, PVR operates 173 cinemas with 854 screens across 74 cities.

5) Sufficient liquidity of Rs 667 crore on balance sheet.

MANAGEMENT COMMENTARY

"I strongly feel that this year can be the best year this industry has ever seen. We are doubling down on our investments and if everything goes as planned, this year we will break our own record of the maximum number of screens opened in a year in India," PVR Chairman and Managing Director Ajay Bijli said.

The company is extremely positive about the impending merger with INOX which will give additional firepower to the combined entity to invest and innovate in bringing world class theatrical viewing experience for our discerning audience, Bijli said.