PVR Ltd - Q4FY20 First Cut - ICICI Securities

CMP - Rs. 1159, Market Cap - Rs. 5954 crore

PVR's Q4FY20 results were lower than estimates on profitability front due to write-off on account of re-measurement of deferred tax assets/liabilities while operating performance was largely in line with estimates. On YoY basis, results were sharply low due to relatively weak content and shutdown in March second half on account of Covid-19.

Q4FY20 Earnings Summary

- Reported revenue came in at Rs. 645.1 crore, (23% YoY de-growth), slightly above estimates of Rs. 625.9 crore. Footfalls came in at 19.5 mn, down 29.1% YoY and largely in line with our estimate of 19.9 mn as theatres remained shut from mid-March coupled with weak February box office performance, leading to box office revenues at Rs. 330 crore, down 26.9% YoY. Gross ATP was Rs. 204, up 4.6% YoY in line with expectations of Rs. 204.8. SPH was at Rs. 96, up 5.5% YoY, which, however did not result in F&B revenues growth due to lower footfalls. F&B revenues stood at Rs. 174.6 crore, down 24.6% YoY. Advertisement declined 22.2% YoY to Rs. 68.5 crore, above our expectations of Rs. 57 crore

- EBITDA (without impact of Ind AS116) came in at Rs. 42.8 crore, down 73% YoY. Margins of 6.6% (down 1260 bps YoY) were below our estimates of 9%. On reported basis, EBITDA was at Rs. 172.7 crore in line with estimates, with lower than estimated margins at 26.8% (our estimate: 27.6%)

- PVR has re-measured its deferred tax assets/liabilities and has taken a write-off of Rs. 31.7 crore while shifting to new tax rate. Consequently, the company reported net loss (without impact of Ind AS116) at Rs. 47.8 crore. The reported loss was at Rs. 74.5 crore vs. estimated loss at Rs. 35.1 crore

PVR's performance in Q4 was weaker amidst Covid-19 outbreak and cinemas have remained shut in the current quarter too. The company will raise funds up to Rs. 300 crore via rights issue which should support its liquidity. We seek management commentary on outlook ahead and will come out with an update soon.

Shares of PVR LTD. was last trading in BSE at Rs.1159.5 as compared to the previous close of Rs. 1241.5. The total number of shares traded during the day was 413702 in over 33461 trades.

The stock hit an intraday high of Rs. 1349 and intraday low of 1130. The net turnover during the day was Rs. 503264796.

Source : Equity Bulls

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