PVR continues to monitor, CEO says costs should be kept tight at FY22

After re-opening the PVR screens in October last year, the multiplex operator was unaware that they would have to turn it off again due to the epidemic.

During a call to Q3 FY2021, the company said it hoped the second or third wave of COVID-19 would not return and there would be no locks on the ground.
However, growing cases of coronavirus this year have led to the closure of cinema, making things even more difficult for advertisers.

Capturing the second closure, PVR chief executive Gautam Dutta said the company could not allow costs to rise this year.

“We are working hard this year. All uncontrolled costs from employment, general care (CAM), and staff costs (HR) are controlled. We are all reduced in wages. And we are moving forward as however there is a great deal of awareness about the fact that we cannot let costs go up,” said Dutta.
While discussing the results of the Q3 FY21, the company stated that PVR demanded the lease and issuance of CAM to homeowners during the period of closure and some form of rebate after opening until March 31, 2021, until they expect the business to take time to return to normal. .

The company had closed about 88 percent of homeowners ’homes and was able to obtain large rental wavers and rent discounts and CAM charges not only during the closing period but after opening until March 31, 2021,” PVR Chief Financial Officer Nitin Sood had revealed.

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The reopening will be cautious

Speaking of reopening, whenever theaters open this year, Dutta said PVR will open the movie at a rate not exceeding 50-55% of HR. “We’ll only go a little further after seeing the situation. The movies will also take a few weeks after we start opening the opening.”

Confident of the southern region especially after the release of films like Master superstar Vijay’s Master, Dutta said regions like the South will see a rapid rise because it remains very high there and food sales are high. “So, I don’t see a reason why we want to hold on there but in some regions where Bollywood can take the time our costs will be in line with the release plan and how the business is going.”

When PVR reopened last year in October, it was only in the southern region where the multiplex operator would not add as many people as the area was high. Dutta said the residence was wandering about 60 percent south of PVR cinemas. However, this was not the case in some regions and PVR was conducting one shift and four shows, Dutta said.

In this way in the quarter ending December 31, 2020, the fixed cost reduction of PVR was 63 percent compared to last year’s Q3.
“We have been managing our costs at all levels and going forward we will be very careful and make sure that the costs are not allowed to swell unlike the business or filming that is happening,” he added.

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As well as focusing on cost control, the company is also looking at vaccinating its employees.

“Only about 34% (workers) have been vaccinated. We should have more than 60% of the vaccine depending on the availability of these drugs,” Dutta said.

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