PVR - Rising Covid-19 Cases To Delay Break Even, Impact 2022 Earnings Estimates: Motilal Oswal
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Motilal Oswal Report
As Covid-19-related risk re-emerge, Multiplexes could be severely impacted. We believe -
Restrictions on operations are likely to see a postponement of content, which in turn could hurt occupancies.
PVR Ltd.'s cost management has been commendable during the lockdown, but resumption of cost, with restricted operations, could push breakeven and revise down our FY22E estimates.
The recent Rs 8 billion qualified institutional placement may keep the liquidity situation manageable and avoid any further dilution, though leverage at 0.8 times (FY21E debt/equity) could rise further.
The continued restrictions on Cinema operations is certainly fuelling the over-the-top market, which could put pressure on occupancies.
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