Multiplex chain operator PVR Ltd on Friday reported narrowing of its consolidated loss after tax at Rs 10.2 crore for the third quarter ended December 2021, on the back of easing of COVID-19 related restrictions.
The company had posted a consolidated loss after tax of Rs 49.21 crore in the same period last fiscal, PVR Ltd said in a regulatory filing.
Consolidated total income during the period under review stood at Rs 709.71 crore as against Rs 320.13 crore in the year-ago quarter, it added.
“The impact of COVID-19 on cinema operations was the least in the Q3 FY22 as compared to the preceding quarters since the time the pandemic has hit the economy,” PVR said.
By the end of November 2021, except for Maharashtra and a handful of smaller states, almost all the other states where the group has substantial presence had allowed cinemas to operate at 100 per cent capacity, it added.
“We got a few big theatrical releases after long 19 months during the quarter which helped business to bounce back sharply,” it said, adding the group was able to eliminate monthly cash burn and saw a quick return to profitability which reflects the strong business model and the affinity of consumers to come back.
PVR Ltd Chairman cum Managing Director Ajay Bijli said, “The strength and agility of our business was demonstrated during the last quarter. The pace with which the business recovered from October to December, validates that as soon as new content was made available, our patrons came back to the cinemas.”
The company, however, said the COVID-19 infections that started to increase from the last week of December leading to various restrictions had a negative impact on cinema operations.
“Had the last week of December not been impacted by Omicron and the ensuing restrictions we would have closed with even better numbers for December,” Bijli said.
PVR said,”We assessed the likely impact of the pandemic on our business and we believe it is not likely to impact the recoverability of the carrying value of our assets.”
“We believe that the pandemic may adversely impact the business in the short term but the long term drivers of our business are intact and we do not anticipate any material medium to long term risks to the business,” the company added.