MAM
Covid2019 pushes PVR into the red in Q2
NEW DELHI: Multiplex chain PVR closed the quarter ended 30 September 2020 in the red with a net loss of Rs 184 crore, as compared to profit of Rs 48 crores during the corresponding period of last year. This comes as no surprise, considering that cinemas were shut all over the country for the better part of the year under government directives to check the spread of Covid2019.
The consolidated revenues for the quarter were Rs 111 crore as compared to Rs 979 crore during the corresponding period of last year. Consolidated EBITDA loss for the quarter was Rs 14 crore as against a positive EBITDA of Rs 324 crore in the same period last year.
The company clarified that results for Q2 are not comparable with last year’s results due to temporary closures of cinemas and suspension of operations impacting the business.
The multiplex group has initiated a series of short-term and long-term measures to aggressively control costs as well as augment liquidity. It further strengthened its cost control measures resulting in 71 per cent savings YoY in total fixed costs excluding rent and CAM.
Monthly fixed cost excluding rent and CAM dropped to Rs 24 crore in the quarter as against Rs 86 crore in Q2 FY20. PVR is in active engagement with its developer partners for discussions on rent and CAM and so far settlements have been reached for more than 60 per cent of cinemas offering PVR complete rent waiver for lockdown period and significant discounts on rent post reopening.
Discussions with balance developers are in progress and are expected to close once cinemas are allowed to reopen in those states.
MHA has, in its Unlock 5.0 guidelines, allowed cinemas to reopen from 15 October onwards with 50 per cent capacity. So far, 16 states and UTs, where PVR has presence, have permitted cinemas to restart operations. Out of total 831 screens of the company 575+ have received permission to reopen. PVR is welcoming back its patrons with several celebratory promotions and offers, opportunity for private screenings, film festivals and a fresh new menu to make the movie watching experience truly delightful.
PVR MD & chairman Ajay Bijli said, “I am extremely pleased to report that most of our cinemas, which had shut down due to the pandemic in March have been allowed to reopen. We are eagerly waiting for re-opening of other states, specifically Maharashtra and Telangana, so that business can gradually get back to normal. We are taking all possible precautions so that both our customers and employees feel safe while visiting their favourite cinema. Many of our patrons have responded positively and we’re fully prepared to give them the same immersive movie viewing experience the way we had done before. We are hopeful that once the new content is released the business will gradually recover.”
Brands
Kwality Wall’s reports standalone losses following strategic HUL demerger
Ice cream major faces Rs 64 crore Ebitda loss amid commodity inflation and muted Q3 sales
MUMBAI: Kwality Wall’s (India) Limited (KWIL) has released its first set of financial results as a standalone entity, revealing a challenging start to its independent journey. Following its successful demerger from Hindustan Unilever Limited (HUL) on 1st December 2025 and its subsequent listing on 16th February 2026, the company is navigating a transition period marked by structural changes and high input costs.
For the quarter ended 31st December 2025, the company reported revenue of Rs 222 crores. Despite the revenue base, the bottom line was impacted by several factors, resulting in an Ebitda loss of Rs 64.2 crores. When calculated on a Pre-IND AS 116 basis, the Ebitda loss stood at Rs 83.8 crores.
Organic Sales Growth (OSG) declined by 6.5 per cent year-on-year during the quarter. Volume growth, however, saw a marginal increase of 1.2 per cent. The company reported a gross margin of 41.5 per cent. Additionally, exceptional expenses amounting to Rs 94 crores were recorded, primarily linked to non-recurring costs during the transition phase.
Performance across portfolios and channels was mixed. Within the impulse portfolio, brands such as Magnum and Cornetto recorded mid-single digit volume growth, indicating steady demand in on-the-go consumption. However, the in-home portfolio, which includes take-home packs, experienced muted consumption. The company is planning a relaunch of this category with improved offerings ahead of the 2026 season.
Quick commerce (Q-Com) continued to emerge as a strong growth driver, delivering robust double-digit growth during the quarter. Meanwhile, the company also expanded its physical distribution network by increasing the number of company-owned cabinets across markets.
Margin pressure during the quarter was driven by a combination of one-off factors and broader cost inflation. Gross margins were impacted by around 600 basis points due to trade investments made for stock liquidation. Additionally, cocoa price inflation contributed to another 400 basis points of pressure on margins.
Deputy managing director Chitrank Goel attributed the muted performance partly to prolonged monsoons and transitional challenges linked to the GST framework. Operating expenses also increased as the company invested in establishing its standalone supply chain, operational systems and corporate infrastructure following the demerger.
Looking ahead, the management remains focused on a volume-driven growth strategy. To restore profitability, the company has initiated a cost productivity programme aimed at reducing non-consumer-facing costs. It is also working on building regional manufacturing networks to optimise logistics expenses and improve operational efficiency.
The commodity outlook for the near term remains mixed. Dairy prices are expected to remain firm due to tight supply conditions and rising fodder costs. Sugar prices may also move higher following increases in the Minimum Selling Price (MSP). While cocoa prices have moderated recently, currency depreciation has offset some of the potential cost relief for the company.
