IDBI Capital: PVR Q1 Review - Excellent Cost Management Amid Shutdown
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IDBI Capital Research
PVR Ltd. has demonstrated strong cost management in Q1 FY21 amid the shutdown of Cinemas.
Its Ebitda loss of Rs 1.16 billion was lower than our forecast of Rs 1.3 billion. PVR expects the cash-burn in Q2 FY21 to be even lower QoQ.
Further, it is confident that part of the cost optimization initiatives to be sustainable.
PVR is hopeful of Government providing the date for reopening of cinemas towards the end- September in ‘Open-up 5.0’. It is hopeful of cinemas being allowed to be reopened in October.
We factor shutdown in Q2 FY21 and addition of 24 screens in FY21 versus 40 earlier.
We factor addition of these towards the end of Q4 FY21 and factor utilization of additional capacity only in FY22. We trim FY22 Ebitda by 3.6%.
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