Motilal Oswal: Sharp Cost Measures Cushion PVR’s Q1 Loss; Status Of Reopening Remains Unclear
File image of cinema-goers wearing 3D glasses watch a movie at a PVR Multiplex in Mumbai. (Image: PVR)

Motilal Oswal: Sharp Cost Measures Cushion PVR’s Q1 Loss; Status Of Reopening Remains Unclear

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Motilal Oswal Report

PVR Ltd.’s Q1 FY21 operating loss of Rs 1.3 billion (versus estimate Rs 2.1 billion) was better than expected, driven by sharp cost-cutting measures.

Operating expenses are expected to further decline by approximately 30% QoQ in Q2 FY21, driven by the rationalization of employee expenses.

We expect the remainder of H1 FY21 to remain a total washout due to Covid-19 and anticipate continued weak capacity due to social distancing measures.

Hence, we expect profitability to return only by FY22E.

We estimate FY22E revenue/Ebitda at Rs 37.4 billion/Rs 6.2 billion (at 9%/7% over FY20E) with the return of stability and some capacity additions.

Click on the attachment to read the full report:

Motilal Oswal PVR Q1FY21 Result Update.pdf

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