PVR Ltd - Result Update - ICICI Securities

PVR's Q4FY20 performance was impacted by Covid-19 and further aggravated by ordinary box office collections in February. Footfalls came in at 19.5 mn, down 29.1% YoY, leading to box office revenues at Rs. 330 crore, down 26.9% YoY. F&B revenues fell 24.6% to Rs. 174.6 crore with SPH at Rs. 96, up 5.5% YoY. Advertisement revenues declined ~22% YoY to Rs. 68.5 crore. EBITDA (without impact of Ind-AS 116) came in at Rs. 42.8 crore, down 73% YoY with margins of 6.6% (down 1260 bps YoY). Given the write-off of Rs. 31.7 crore in net deferred tax asset while shifting to a new tax rate, the company reported net loss (without impact of Ind-AS 116) at Rs. 47.8 crore.

Valuation & Outlook

We continue to believe PVR is a proxy play on urban/semi urban discretionary spends. However, leisure activities and discretionary spend will take a backseat during a stressed macroeconomic setup in the near term. Current cash of Rs. 227 crore raising of Rs. 300 crore via rights issue is likely to ensure liquidity in near term. We will closely track the reopening of cinemas amid Covid-19 and turn buyer only when we witness footfall revival and stability. We maintain HOLD rating and value the stock at 10x FY22E (ex-Ind-AS) EV/EBITDA with a target price of Rs. 1085/share.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_PVR_Q4FY20.pdf

Shares of PVR LTD. was last trading in BSE at Rs.1005.5 as compared to the previous close of Rs. 1087.25. The total number of shares traded during the day was 416982 in over 19376 trades.

The stock hit an intraday high of Rs. 1070.95 and intraday low of 987.65. The net turnover during the day was Rs. 422569101.

Source : Equity Bulls

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