Shares of PVR Ltd. rose the most in more than a month after the nation's largest multiplex operator managed to reach rent waiver settlements for some screens.
PVR managed to reach settlements for more than 60% of cinemas for complete rent waiver for the lockdown period and significant discounts after reopening, according to its media statement. “Of the total 831 screens, the company has managed to receive permission to open over 575. We are eagerly waiting for reopening in other states, specifically Maharashtra and Telangana, so that business can gradually get back to normal,” the statement said.
Multiplexes, along with hotels and airlines, were among the worst-hit businesses as stay-at-home orders to counter the Covid-19 pandemic froze operations. PVR reported a net loss of Rs 184 crore in the quarter ended September, owing to continued fixed costs but no revenue contribution.
The company's revenue fell 95.8% year-on-year to Rs 40.5 crore, while it suffered an operating loss of Rs 84.1 crore against an operating profit of Rs 318 crore a year ago.
As on Oct. 31, PVR had liquidity of more than Rs 550 crore, including undrawn banking lines. It has expressed its confidence to sustain its operations and meet all its obligations.
Shares of PVR gained as much as 8% but pared some of it to trade 4% higher at Rs 1,147.6 apiece in early trade on Wednesday. That compares with a 0.49% rise in the Nifty 50 Index. PVR stock has gained in three of the last four trading sessions, and is looking to sustain above its 100-day moving average at 1,165.
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