PVR, Inox Leisure share prices plunge up to 8% as coronavirus hits film exhibition business

pvr, inox leissure

PVR, Inox Leisure share prices declined up to 8 per cent in Tuesday’s volatile session, after both the multiplex operators reported losses for the quarter ended on March 31, due to the coronavirus outbreak in the last month of the quarter. PVR share price slipped up to 4.6 per cent to touch the day’s low of Rs 1,106 apiece on BSE, while Inox Leisure share price fell 7.6 per cent to Rs 261.3 apiece in today’s session. Last month, PVR stock price hit a 52-week low of Rs 719.50, slipping 66 per cent from its 52-week high of Rs 2,121 touched in February this year. “Multiplex operator stocks like PVR and Inox Leisure have witnessed a sharp up move of 60% from the bottoms over the past fortnight outperforming the broader markets,” Vikas Jain, Senior Research Analyst at Reliance Securities, told Financial Express Online. “Inox has tested the 200-day average and witnessed a reversal, one should wait for some declines to enter near 225-230 levels. PVR too failed to react positive post their quarterly numbers and with weak first quarter expected one should look in declines near 980-1000 levels which is 50% retracement of the recent upmove,” Jain added.

Hammered by the COVID-19 pandemic, PVR reported a consolidated net loss of Rs 74.61 crore for the fourth quarter ended March 31, as the film exhibition business was impacted due to COVID-19 pandemic. The company had posted a net profit of Rs 46.75 crore in the January-March quarter a year ago. Similarly, Inox Leisure posted a consolidated net loss of 82.15 crore for the January-March quarter of the financial year 2019-20. The company had posted a net profit of Rs 48.08 crore in the corresponding period of the preceding fiscal.

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In a separate filing, PVR informed the BSE that its board of directors of the company has given in-principle approval for a rights issue for an amount of up to Rs 300 crore as confidence capital to shore up the capital base. “Beginning March 11, 2020, the 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,” PVR said in a press release.

Inox Leisure share price touched a fresh 52-week low of Rs 158.20 in May, since then the stock has gained 65 per cent. However, Inox Leisure share price is still nearly 50 per cent away from its 52-week high level hit in the second month of this calendar year. “As the government has been announcing the phased lifting of lockdown, the management believes that normalcy could be gradually restored during the financial year ending 31 March 2021 and consequently the company will be in a position to resume and continue its operations for the foreseeable future,” Inox Leisure said in its press release.

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