PVR share price rose over 7% today despite the firm reporting a consolidated net loss of Rs 184.06 crore in Q2 as the film exhibition business remained affected by coronavirus-related restrictions. The movie exhibitor had posted a net profit of Rs 47.67 crore in the July-September quarter a year ago.
However, PVR said its results were not comparable as business was impacted due to temporary closures of cinemas.
The stock gained after the firm said it initiated a series of short-term and long-term measures to aggressively control costs as well as augment liquidity. PVR strengthened its cost control measures leading to 71 percent savings YoY in total fixed costs excluding rent and CAM.
Monthly fixed costs excluding rent and CAM dropped to Rs 24 crore in the quarter as against Rs 86 crore in Q2 FY20, the movie exhibitor firm said. The movie stock opened with a gain of 3.85% at Rs 1145 against previous close of Rs 1102. The stock touched an intraday high of Rs 1186.85, gaining 7.65%. The stock trades higher than 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages.
The share has lost 40.63% since the beginning of this year and fallen 35.21% in last one year.
Total 2.31 lakh shares changed hands amounting to turnover of Rs 26.59 crore on BSE. Keshav Lahoti- Associate Equity Analyst at Angel Broking said, "We are bullish on PVR as long-term fundamentals are still intact for the company and stock has corrected 40% due to Covid. We believe it will take a couple of months for the company to bring the business back to normal. The stock will rally once anticipated movies of the year hit screen and announcement of opening of theatres in Maharashtra."
Total income in Q2 fell to Rs 110.61 crore against Rs 979.40 crore in the corresponding quarter last fiscal. PVR's total expenses were at Rs 389.37 crore in July-September 2020-21.