PVR Cinemas declares net loss of Rs 49 crore in Q3 due to COVID-19

With the COVID-19 pandemic’s effects, the cineplex chain PVR Cinemas Ltd. on Friday announced a net loss of Rs 49 crore for the 3rd quarter that ended on 31st December 2020. In comparison to the previous year, the net profit was Rs 36 crore.

The company’s December results have been promising considering the net loss reduced in relation to a net loss of Rs 184 crore in the September quarter.

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At 2:45 PM on 15th January 2021, the company’s scrip was trading 2% higher at Rs 1,467.35.

Revenue from operations reduced by 95% to Rs 45.4 crore, compared to Rs 916 crore in the previous period.

With the upliftment of restrictions, that is, 50% occupancy, the company said that it is yet to resume 56 screens in 15 cinemas as of January 15.

PVR Cinemas is facing rental negotiations. However, the company said that for the next few months it has the liquidity to meet all debt and interest obligations. Settlements with landlords have reached for 88% cinemas with a complete and partial waiver for COVID-19 lockdown period.

It had cut salaries of employees. The temporary cuts are being rolled back in a staggered format, the cineplex chain said.