PVR Ltd - Q2FY21 First Cut - ICICI Securities

CMP - Rs. 1103, Market Cap - Rs. 6083 crore

PVR reported a washout Q2FY21 as cinemas were shut during the quarter. PVR reported higher than estimated expenses (owing to provision for CAM expenses) while operating performance was slightly better than estimates due to higher income through subsidiaries and rent concessions getting classified as other income.

Q2FY21 Earnings Summary

- Reported revenue came in at Rs. 40.5 crore, (95.8% YoY de-growth) against estimate of marginal revenues of Rs. 6 crore. PVR reported box office revenue of Rs. 60 lakhs (income from Sri Lanka property) while no ad income was reported. The company reported Rs. 3.7 crore of F&B revenues and Rs. 27.5 crore of movie distribution revenues through its subsidiaries while the balance was other operating income

- EBITDA loss (without impact of Ind AS116) was at Rs. 81 crore against EBITDA of Rs. 194.4 crore in Q2FY20. The company invoked Force Majeure leading to no rental expenses. However, the company has provided for CAM expenses as negotiations with landlords are still underway. Similarly, on reported basis, EBITDA loss was at Rs. 84.2 crore (our estimate: Rs. 91.9 crore)

- PVR has reported rent concession of Rs. 64 crore as the other income following invocation of Force Majeure. Consequently, the company reported net loss (without impact of Ind AS116) at Rs. 116.1 crore. The reported net loss was at Rs. 184 crore vs. estimated loss of Rs. 225.9 crore

PVR has managed to further reduce monthly cash burn marginally via layoffs/salary cuts and Force Majeure invocation. PVR raised Rs. 300 crore via rights issue during the quarter leading to total liquidity of Rs. 550 crore which will support opex in near term. During the current quarter, cinema halls were allowed to open from 15 October onwards providing major relief to multiplexes. PVR's 575 out of 831 screens are allowed to reopen as per guidelines. We seek management commentary on outlook ahead as the initial occupancy trend will be key monitorable. As big budget films' releases are still a few weeks away, sustained occupancy numbers will be important. Films with box office potential going the OTT route remains a concern. We will come out with an update post conference call.

Shares of PVR LTD. was last trading in BSE at Rs.1102.55 as compared to the previous close of Rs. 1106.55. The total number of shares traded during the day was 70631 in over 7623 trades.

The stock hit an intraday high of Rs. 1120 and intraday low of 1090.2. The net turnover during the day was Rs. 77786132.

Source : Equity Bulls

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