PVR delivers blockbuster results
Ajay Bijli, Chairman, PVR says, “We were in the rescue phase earlier; we are in the revival phase now, and then comes the reimagination phase, where we will definitely look for the diversification.”
Considering the financial performance of the company, PVR Limited recorded net sales and other operating income of Rs 512.09 crore thereby, posting a growth of 304.4 per cent from Rs 168.23 crore registered in Q4FY21. On the other hand, the operating profit was recorded at Rs 149.13 crore in Q4FY22 as compared to an operating profit of Rs 27.35 crore in Q4FY21, giving a strong rise of 545.27 per cent. Q4FY22 recorded a decline in the net loss as it is Rs 89.96 crore in comparison with the net loss of Rs 280.33 crore in the same quarter of the previous year.
Considering the yearly performance, the net loss of PVR Ltd declined to Rs 478.35 crore as against Rs 723.50 crore during the previous year, ending March 2021. On the other hand, net sales rose by 537.53 per cent to Rs 1,213.31 crore as against Rs 225.72 crore during the previous year ending March 2021.
COVID-19 impacted many businesses and the movie theatre business was one such that was affected to a great extent. Talking about that phase, Ajay Bijli, Chairman, PVR says, “We were in the rescue phase earlier; we are in the revival phase now, and then comes the reimagination phase, where we will definitely look for the diversification.”
In its investor presentation, the company explained how operations in January & February 2022 were impacted due to a lack of new content and capacity restrictions. In March, the release of blockbuster content has led to smart recovery and excellent profitability for the month. Now, all restrictions have been lifted across nearly 99 per cent of the screens. Also, the company’s liquidity position is quite good as it was able to carry sufficient liquidity of Rs 66,721 lakh at the end of March 2022.
PVR, a movie theatre chain, pioneered the first multiplex cinema in 1997 at Saket, New Delhi. After achieving all the success in terms of great demand & experience and having 854 screens across the country, PVR is yet to spread its wing across tier-2 and tier-3 cities of India. Recently, the company opened 29 screens across five properties in FY22. And, it expects to open nearly 125 new screens in FY23.
On March 27, 2022, the company’s board approved the merger of INOX Leisure Ltd with PVR Ltd, subject to necessary approvals. It will create and enhance value for all stakeholders. Upon the scheme becoming effective, the combined entity – ‘PVR INOX Ltd’ will issue three new shares for every 10 shares held by INOX shareholders.
The outlook for PVR remains bright despite suffering losses in the current quarter. Keep a close eye on this scrip for the upcoming sessions.