PVR reports huge loss and film industry suffers
Multiplex player PVR Cinemas on Friday reported a consolidated net loss of Rs 49 crore for the October to December quarter against a profit of Rs 36 crore in the year-ago period. In the previous quarter (July to September), it had reported a loss of Rs 184 crore as the outbreak of coronavirus and lockdowns hit cinema halls and retail joints. Revenue for the December quarter totalled Rs 45 crore against Rs 915 crore year-on-year and Rs 40 crore quarter-on-quarter. Consolidated earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss came at Rs 78 crore as compared to Rs 307 crore year-on-year. Even as the government allowed movie theatres to re-open with 50 per cent occupancy, PVR Cinemas said it is yet to re-open 56 screens in 13 cinemas as certain rental negotiations are currently ongoing.
The company said these negotiations helped in reducing rental and common area maintenance (CAM) expenses by Rs 444 crore as compared to the nine-month period ending December 31, marking a reduction of 80 per cent.
Indian apparel exports to be on growth path
India’s apparel exports are expected to revert to a growth trajectory in FY2022 with a recovery in demand in key markets of the United States and the European Union, according to investment information firm ICRA. The export demand will partly benefit from the low base effect and is likely to be supported by the increasing the focus of large buyers on diversifying their sourcing base beyond China. But the risk of a fresh wave and surge in infections remains, said ICRA. Following a contraction in the calendar year 2020, global apparel trade is expected to revert to pre-Covid levels in CY2021 and grow at a muted pace of one to two per cent per annum in the near to medium term in line with the past five years. Growth in the near term is likely to be driven by volumes as realisations may decline amid softer raw material prices, downtrading, and shift in preference towards lower-value apparel. On the other hand, said ICRA, domestic apparel demand is estimated to have reverted to pre-Covid levels in recent months supported by pent-up demand and festive buying.
Even as sustained recovery in offline retail to normal levels may take longer, domestic apparel players are expected to report a healthy recovery in FY2022.