Multiplex operator PVR Cinemas suffered a consolidated loss after tax of Rs 226 crore in the first quarter (April to June) of the current financial year as compared to a profit of Rs 18 crore during the corresponding period of last year.
The revenues in Q1 FY21 totalled Rs 55 crore as compared to Rs 887 crore in Q1 FY20 due to the outbreak of COVID-19 and consequent lockdown.
Consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) loss for the quarter was Rs 73 crore as against a positive EBITDA of Rs 285 crore in the same period last year.
The company undertook a series of short-term and long-term measures including temporary pay cuts, workforce reductions, suspension of third party contracts, and other temporary and permanent cost structure changes to aggressively control costs as well as augment liquidity.
PVR said it successfully managed to control its monthly fixed cost at Rs 32 crore, lower than Rs 150 crore in Q1 of FY20. This resulted in the company managing its liquidity efficiently even in a challenging situation.
During the quarter, PVR also successfully completed its rights issue for Rs 300 crore. The issue was subscribed 2.24x which is the highest oversubscription for a rights issue in the last 15 years.
"This truly reflects the confidence shareholders have in the company's ability to bounce back from this temporary setback," it said in a statement.
PVR said it has Rs 550 crore of liquidity available including undrawn banking lines of Rs 155 crore which is sufficient to sustain its operations and meet all its obligations.
Chairman and Managing Director Ajay Bijli said COVID-19 pandemic presents an unprecedented challenge to all businesses. "With cinemas remaining closed, we shifted our attention to cost control during the quarter," he said.
"Our disciplined efforts on managing costs and liquidity significantly contributed to our ability to navigate the unprecedented challenges. The government has now started taking measures to bring the economy back on track and we hope that cinemas are allowed to reopen soon."