PVR Q4 Results: Revenue, Profit, Key metrics and More

Last updated: 04 Jun, 2021 | 12:17 pm

PVR Q4 Results: Revenue, Profit, Key metrics and More

Revenue and profit: PVR posted a revenue of Rs. 263 cr (down 60% YoY) and a net loss of Rs. 289 cr (up 290% YoY) for the March quarter caused by the capacity restriction on cinemas of 50% and limited content flow which resulted in low occupancy (8%) and footfall only 25% of the pre covid numbers. Out of total revenue, Only 70% came from operations (Rs. 181 cr). Relief on rental leases post negotiations was shown as other income which came out to be Rs. 82 cr.

Key Metrics: 

  • Footfall - Footfall for Q4 stood at 58 lakhs, only 25% of 2.2 cr seen in the Oct-Dec 2020 quarter.
  • Occupancy - Occupancy stood at 8.1%, which is significantly higher than last quarter's number of 1.4% but still very far from the pre covid usual of ~35%.
  • Spend per head - Spend per head, which is a metric of how much an average person spends on food and beverages, remained relatively constant at Rs. 95 compared to Rs. 102 before covid.
  • Average ticket price - Given the promotion ticket rates of Rs. 99, ATP rates are running very low at Rs.183 compared to pre covid levels of Rs. 204. ATP increase would also be a function of new content flow once Mumbai and some other key markets open up.
  • Cinema properties and screens: PVR added 1 Cinema property over the last quarter taking the number to 160 but reduced 3 screens over the last quarter.

Operational Performance: 

  • Fundraise: The company raised Rs. 1600 cr in FY21, of which Rs. 1100 cr was through equity and Rs. 500 cr was debt.
  • Capex: Even though Capex is on hold for now, PVR has 19 new screens ready has a very large pipeline of WIP projects which need to completed or discarded at losses.
  • Cost measures: Rental waivers and lower employee costs (down 22% YoY) are expected to provide big relief to the company. The management expects the fixed costs to reduce by 10-15% on a long-term basis.

Conclusion: PVR, as expected, is struggling big time due to the pandemic and the company has not been able to pivot much to adapt to the situation. The company posted a Rs. 747 cr loss for FY21 as opposed to Rs. 273 cr profit in FY20. The company had made big commitments in terms of Capex and will have to stick to them even in these difficult times. Although some measures have been taken like reducing employee costs and negotiating rents, PVR’s fate lies in the hands of covid waves and lockdowns. Covid era has also seen a rise in trend of OTT usage with huge subscriber increases and Bollywood releasing films like Radhe over OTT. Still, South Indian movies reaching 50-60% of pre covid levels and seeing overall ATPs only 10% below pandemic levels in Q4 reflects demand still being present for offline film viewing. PVR's fate also hangs in the frequency of film releases, even though there was no lockdown in Q4, there were not many film releases and hence lower footfalls. Management is hoping the mass vaccination drives in India would bring in the numbers but 100% full vaccination is still a distant dream for India.

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