Of course, investors must keep an eye on occupancies in theatres after re-openings, which after a long intermission, could still remain tepid. The PVR stock, a big beneficiary of the so-called ‘unlock’ trades in August, has fallen about 23% from its highs in end-August. As a result, operating losses were lower at ₹81 crore from Rs124 crore in the June quarter. PVR said it got complete rent waiver in the lockdown period on 60% of its screens and significant discounts on reopening. In the longer run, however, the return on equity could contract on account of mounting debt and lower occupancies.

Source: Mint November 04, 2020 08:26 UTC