Motilal Oswal: PVR’s Sharp Cost Measures Cushion Losses  
Yellow warning tape seals off auditorium seats to implement safe distancing measures at a film theater in the PVR Icon cinema at the DLF Promenade Mall in New Delhi, India. (Photographer: Anindito Mukherjee/Bloomberg)

Motilal Oswal: PVR’s Sharp Cost Measures Cushion Losses  

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Motilal Oswal Report

With lockdown in force for the majority of the quarter, PVR Ltd.’s revenue plunged 96%; however, a sharp 83% cut in opex cushioned Ebitda loss (pre-India-Accounting Standard-116) to Rs 810 million (better than estimated Rs 1 billion).

We cut our FY21E/FY22E Ebitda by a further 37%/6% -- factoring in the delay in the resumption of cinema operations across India -- reaching Ebitda of Rs 5.8 billion by FY22 (at FY20 levels, even after 12% capacity adds).

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Motilal Oswal PVR Q2FY21 Result Update.pdf

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