Conference Call with PVR Management and Analysts on Q4FY20 and Full Year Earnings Performance and Outlook. Listen to the full earnings transcript.
Key Highlights from Management
January and February were good months, we were doing very well. But March was impacted due to lockdowns. Overall, financial year 2019-20 was a successful year in our growth story, as PVR added 87 screens, the highest ever screens opened in a financial year by any cinema operator in India.
Further company is considering steps to further augment its liquidity position through fresh borrowings and equity issuance. With respect to the same, the board of directors of the company has given an in-principle approval for a Rights Issue for an amount of upto Rs. 300 crore as “confidence capital” to shore up the capital base.
Our Rights issue is meant to shore up liquidity. We raised Rs 500 crore of equity through QIP around November. We took the resolution to raise Rs 300 crore more of equity to tide through these uncertain times. We are not going to give a guidance because we have a lot of moving pieces due to some ongoing acquisitions, but we are raising funds to ensure liquidity.
Consolidated revenues for quarter ended March 31, 2020 were Rs 662 crores as compared to Rs 846 crores during the corresponding period of last year, witnessing a drop of 22% impacted by outbreak of COVID-19 in the last month of the quarter.
Consolidated EBITDA for the quarter was Rs 189 crores as against Rs 169 crores in the same period last year, witnessing a growth of 12%. EBITDA margin for the quarter was 29%. Consolidated PAT for the quarter was Rs. (75) crores as compared to Rs. 47 crores during the corresponding period of last year.
Results for quarter and year ended 31st March,2020 are not strictly comparable with results for quarter and year ended 31st March, 2019 on account of adoption of IND-AS 116 “Leases”. After adjusting for impact of IND-AS 116 - Leases, EBITDA, and PAT of the company would have been Rs. 59 crores and Rs. (48) crores respectively.
The overall EBITDA margin of the company was 9% (after excluding IND-AS 116 impact). Consolidated revenues for financial year ending March 31, 2020 was Rs 3,452 crores as compared to Rs 3,119 crores last year, witnessing a growth of 11%. Consolidated EBITDA for the year was Rs 1,114 crores as against Rs 619 crores last year, witnessing a growth of 80%. EBITDA margin for the year was 32%. Consolidated PAT for the year was Rs. 27 crores as compared to Rs. 189 crores last year.
After adjusting for impact of IND-AS 116 - Leases, EBITDA, and PAT of the company would have been Rs. 614 crores and Rs. 131 crores respectively. The overall EBITDA margins of the company were 18% (after excluding IND-AS 116 impact). Further the PAT of the company, for Q4 and FY 20 was impacted by an amount of Rs. 32crs due to a one- time re-measurement of deferred tax assets of the company.
Financial performance of the company for FY 20 was impacted by the COVID-19 outbreak which disrupted company’s operations. Beginning March 11, 2020, Company started closing its screens in accordance with the order passed by various regulatory authorities and within a few days most of our cinemas across the country were shut down.
Since Cinema Exhibition is the only business segment, the firm is currently not generating any significant operating revenue or cash flow from operations. We are taking stringent measures to address the situation by implementing cost reduction strategies and conserving liquidity on the balance sheet. As on March 31, 2020, the company had almost Rs. 316 crores in liquid assets.
Currently, the firm operates 845 screens in 176 properties in 71 cities across India and Sri Lanka. The overwhelming majority of producers have spoken out in support of theatrical releases, and many producers have postponed their releases to release when theatres are open, to ensure they get a theatrical release rather than an OTT release. So 90% of our planned releases are going to have a theatrical release,.
The US has opened cinemas and distributors there are announcing dates. Once we get clarity, our distributors here will also do the same.