Leading multiplex chain operator PVR Ltd on Tuesday reported a consolidated net loss of Rs 184.06 crore for the second quarter ended September 30, 2020, as the film exhibition business continued to be impacted by the coronavirus-related restrictions. The company had posted a net profit of Rs 47.67 crore in the July-September quarter a year ago, PVR said in a BSE filing.

Its total income was at Rs 110.61 crore during the quarter under review against Rs 979.40 crore in the corresponding quarter last fiscal. PVR's total expenses were at Rs 389.37 crore in July-September 2020-21.

"Financial performance of the company for Q2, FY 21 was impacted by the continued lockdown announced due to COVID-19 outbreak, which disrupted company's operations," said PVR in a post earning statement.

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Consequently, PVR had almost nil' revenues during the quarter from core movie exhibition business with the exception of one property in Colombo, Sri Lanka, it added. "With 100 percent revenue decline, the company reported significant losses in Q2, driven by the continuing fixed costs, it said.

Meanwhile, PVR said its results were not comparable as business was impacted due to temporary closures of cinemas. Results for the quarter ended September 30, 2020, are not comparable with results for the quarter ended September 30, 2019, as temporary closures of cinemas and suspension of operations have impacted business operations, it said.

The company had initiated a series of short-term and long-term measures to aggressively control costs as well as augment liquidity. PVR further strengthened its cost control measures resulting in 71 percent savings YoY in total fixed costs excluding Rent and CAM. Monthly fixed cost excluding Rent and CAM dropped to Rs 24 crore in the quarter as against Rs 86 crore in Q2 FY20," it said.

PVR is in active engagement with its developer partners for discussions on rent and CAM and so far settlements have been reached for more than 60 percent of cinemas offering PVR complete rent waiver for lockdown period and significant discounts on rent post reopening.

Under Unlock 5.0 guidelines, the government has permitted cinemas to reopen from October 15 onwards with 50 percent capacity. So far, 16 states and UTs, where PVR has a presence, have permitted cinemas to restart operations. Out of total 831 screens of the company, over 575 have received permission to reopen, it said.

PVR Ltd Chairman cum Managing Director Ajay Bijli said: We are eagerly waiting for re- opening of other states, specifically Maharashtra and Telangana, so that business can gradually get back to normal. We are taking all possible precautions so that both our customers and employees feel safe while visiting their favourite cinema.

First Published:Nov 4, 2020 8:45 AM IST