4 November 2020
2QFY21 Results Update | Sector: Media
PVR
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
PVRL IN
47
61.6 / 0.8
2083 / 707
-19/-10/-36
2210
CMP: INR1,115 TP: INR1,340 (+20% )
Sharp cost measures cushion losses
Buy
Net loss at INR1.2b (v/s est. INR1.3b and PAT of INR760m YoY)
With lockdown in force for the majority of the quarter, revenue plunged
96%; however, a sharp 83% cut in opex cushioned
EBITDA loss (pre-Ind-AS
116) to INR810m (better than est. INR1b).
We cut our FY21E/FY22E EBITDA by a further 37%/6% – factoring in the
delay in the resumption of cinema operations across India – reaching
EBITDA of INR5.8b by FY22 (at FY20 levels, even after 12% capacity adds).
PVR’s 2QFY21 revenue plummeted 96% YoY to INR436m (INR9.7b in
2QFY20) due to continued lockdown. Revenue includes sales of INR37m and
INR275m from F&B and movie production-distribution, respectively.
On a pre-Ind-AS 116 basis, EBITDA loss stood at INR810m (INR1.9b YoY),
cushioned by an 83% fall in operating cost to INR1.2b. Fixed cost, which
accounts for two-thirds of opex, was down 75% YoY.
Net loss stood at INR1.2b (INR760m YoY).
It has reached a settlement with the developers of more than 60% of its
cinemas for complete rental waiver during the lockdown and reduced rent
sharing post the reopening. Also, common area maintenance (CAM) charges
would be discounted by 30–50%.
Revenue recovery, which may
take another six months, would be
supported by a) cinema re-openings in Maharashtra and b) new movie
releases.
The focus on reducing cost by ~70%
– with a 50% drop in rentals and even
higher decline in employee and other expenses in FY21E – would curb cash
burn.
Cinema additions and inorganic opportunities have stalled until normalcy
returns. Nonetheless, expect 30 screen adds (for which 90% work has been
completed) with INR1b capex in FY21.
PVR’s near-term profitability and business scale should be affected as
cinemas have been the last to open, and are operating with much-reduced
capacity and limited timings.
Waiver of rental charges and the sharp drop in employee and other expenses
come as a great relief; >50% decline has been reported in overall costs.
The
existing >INR5.5b liquidity,
including ~INR3.5b cash (INR3b proceeds from a
rights issue) should cater to the next 6–8 months of cash burn.
The recent shift in movies to OTT platforms and their increased viewership
raise concerns regarding the increased competition from the OTT medium.
However, multiplexes are expected to resume operations with a fixed
exclusive window of movie viewing in cinemas and healthy flow of movie
content. This, coupled with PVR’s scale and execution, should bode well for
the company.
We expect PVR to reach FY20 EBITDA levels of INR5.8b in FY22E. We value
the company at 15x FY22E EBITDA to arrive at Target Price of INR1,340 (v/s
INR1,460 earlier).
Maintain Buy.
Financials & Valuations (INR b)
FY20 FY21E FY22E
Y/E March
Sales
34.1
5.0 33.8
EBITDA
5.8
-1.8
5.8
Adj. PAT
1.7
-3.9
1.2
EBITDA Margin (%)
16.9 -35.0 17.2
Adj. EPS (INR)
32.2 -70.4 21.4
EPS Gr. (%)
-15.0
NM
NM
BV/Sh. (INR)
288.3 252.1 273.5
Ratios
Net D:E
3.1
3.5
3.1
RoE (%)
11.1
NM
8.1
RoCE (%)
6.2
-4.3
3.5
Payout (%)
0.0
0.0
0.0
Valuations
P/E (x)
34.6
NM
NM
P/BV (x)
3.9
4.4
4.1
EV/EBITDA (x)
16.9
NM 16.9
Div Yield (%)
0.0
0.0
0.0
FCF Yield (%)
3.9
-4.9
3.2
Shareholding pattern (%)
As On
Sep-20 Jun-20
Promoter
18.8
18.6
DII
30.1
29.8
FII
34.6
37.0
Others
16.6
14.7
FII Includes depository receipts
Highlights from management commentary
Sep-19
19.6
26.6
42.5
11.4
Valuation and view
Research Analyst: Aliasgar Shakir
(Aliasgar.Shakir@motilaloswal.com);
Suhel Shaikh
(Suhel.Ahmad@MotilalOswal.com) /
Anshul Aggarwal
(Anshul.Aggarwal@motilaloswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
4 November 2020
1
 Motilal Oswal Financial Services
PVR
Quarterly Performance
Y/E March
Net Sales
YoY Change (%)
Total Expenditure
EBITDA
YoY Change (%)
Depreciation
Interest
Other Income
PBT before EO expense
Extra-Ord expense
PBT
Tax
Rate (%)
MI & P/L of Asso. Cos.
Reported PAT
Adj PAT
YoY Change (%)
E: MOFSL Estimates
1Q
8,804
26.4
7,217
1,587
15.6
549
414
68
691
1
690
104
15.1
0
586
586
12.0
FY20
2Q
9,732
37.3
7,788
1,944
56.8
598
390
62
1,018
2
1,016
258
25.4
2
760
760
130.2
3Q
9,157
8.6
7,355
1,802
9.7
563
392
82
929
2
928
221
23.8
1
708
708
36.7
4Q
6,451
-23.0
6,023
428
-73.4
614
325
167
-344
1
-345
44
-12.8
1
-388
-346
-174.0
1Q
43
-99.5
1,286
-1,243
-178.4
603
353
83
-2,116
2
-2,118
(707)
33.4
1
-1,410
-1,410
-340.6
FY21
2Q
3Q
436
1,328
-95.5
-85.5
1,246
1,795
-810
-466
-141.7 -125.9
583
608
351
355
0
47
-1,744 -1,382
4
0
-1,749 -1,382
(587)
(463)
33.6
33.5
1
0
-1,161
-919
-1,161
-919
-252.7 -229.8
FY20
4Q
3,236
-49.8
2,467
769
79.7
638
360
59
-170
0
-170
449
-264.1
0
-620
-620
79.2
FY21
FY21
1QE
44
-90.0
1,055
-1,012
24.9
635
405
104
-1,949
0
-1,949
-653
33.5
0
-1,296
-1,296
NM
(INR m)
Est. Var
(%)
-90
(5.8)
471
NM
9
15
NM
NM
NM
11
34,144
5,035
10.7
-85.3
28,382
6,794
5,762 -1,760
-1.7 -130.5
2,324
2,432
1,521
1,418
378
416
2,294 -5,194
5
0
2,289 -5,194
627.4 -1307.3
27.4
25.2
5
1
1,666 -3,886
1,708 -4,109
-7.1 -340.6
NM
NM
Key Performance Indicators
Y/E March
Number of properties
Addition
Number of screens
Screen Adds
Occupancy rate (%)
Average ticket price (INR)
1Q
167
3
785
22
35
202
18.0
11.8
6.7
FY20
2Q
170
3
800
15
38
196
20.0
13.8
7.8
3Q
172
2
821
21
33
203
19.7
13.5
7.7
4Q
176
4
845
24
33
204
6.6
-2.9
-5.4
1Q
176
0
845
0
NM
NM
NM
NM
NM
FY21
2Q
173
-3
831
-14
NM
NM
NM
NM
NM
FY20
3Q
178
5
841
10
5
99
-35.1
-80.9
-69.2
4Q
183
5
851
10
12
119
23.8
4.0
-19.1
176
12
845
82
32
201
16.9
10.1
5.0
FY21
186
12
870
25
4
113
-35.0
-83.3
-81.6
EBITDA Margin (%)
EBIT Margins (%)
PAT Margins (%)
E: MOFSL Estimates
Other highlights
Opex reduction initiatives
Rent and CAM charges:
It has reached a settlement with the developers of more
than 60% of its cinemas for complete rent waiver and reduced rent sharing post
the reopening. Also, CAM charges would be discounted by 30–50% based on the
settlement with the developers.
Employee exp. and other opex:
These were also down by more than 60%.
Employee headcount reduced to 6.2k on Sep’20 from 11k on Mar’20. Temporary
salary cuts of 25–50% have been implemented across the organization.
Overheads were down 76% v/s 1QFY20 due to cost-control initiatives, including
a 90% drop in electricity charges.
Liquidity position
It raised INR3b in a rights issue during the quarter. Cash and CE stood at
INR3.8b. Gross and net debt stood at INR12.8b and INR9b, respectively. As of
Oct’30, ~over INR5.5b of liquidity was available, including INR1.6b in undrawn
banking lines.
4 November 2020
2
 Motilal Oswal Financial Services
PVR
Unlock visibility
Unlock 5 guidelines were announced by MHA allowing cinemas to reopen by
15
th
Oct with 50% capacity. As a result, 16 states and UTs, where PVR has a
presence, have permitted cinemas to resume operations. Of the total 831
screens of the company, 575+ have received permission to reopen.
To attract consumers, it is offering promotions and offers, private screenings,
film festivals, and a fresh new menu.
Exhibit 1: Valuation summary
Particulars
EBITDA FY22E (INR m)
Multiple
EV (INR m)
Net Debt (INR m)
Target Market cap (INR m)
No. of shares
Target Price
CMP
Upside
INR m
5,829
15
85,051
11,114
73,937
55.2
1,340
1,112
21%
Source: MOFSL, Company
2QFY21 earnings call highlights
Key takeaways
Revenue recovery is slow
and would take another six months; however, a)
cinema reopenings in Maharashtra and b) new movie releases should drive
footfall.
The focus on reducing cost by ~70%
– with a 50% drop in rentals and a sharp
reduction in employee and other expenses in FY21E – would curb cash burn.
The existing >INR5.5b liquidity,
including ~INR3.5b cash, should cater to the
next 6–8 months of cash burn. Beyond this, if required, the prospect of an
additional capital raise would be explored.
Fresh capex is stalled,
including new cinema additions and inorganic
opportunities, until normalcy returns. Nonetheless, there could be 30 screen
adds, for which 90% of the work has been completed, with INR1b capex in FY21.
Revenue growth visibility
Cinemas restarting gradually; Maharashtra also reopening
Cinemas remained shut for most of the quarter, hence driving losses due to
the fixed cost nature of the business.
Unlock 5 guidelines include the resumption of cinema operations. 575+
cinema screens have received permission to reopen.
Relaxation on the current limit of 50% seating is unlikely to come in 3QFY21;
hopeful of some relaxation in 4QFY21.
The Maharashtra government, too, has permitted cinemas to reopen.
Consumer traction
It is offering discounts on ticket prices and F&B at screens that have
reopened in Bengal and Assam to improve utilization.
Considering the traction seen in hotels and restaurants and fully packed
malls on the weekends, consumers are cautious, yet keen to step out.
4 November 2020
3
 Motilal Oswal Financial Services
PVR
Hence, once content is released, a healthy improvement should be seen in
terms of utilization.
340 private screenings were launched by PVR across India. This should
become a regular product as it increases revenue opportunity even without
continued flow of content – wedding tapes, anniversaries, and birthday
videos are also showcased. PVR is offering private screenings even at 30%
utilization levels.
ATP at much lower rate:
Given the promotion ticket rates of INR99, ATP rates
are running very low (below INR150), but getting healthier. ATP increase would
be a function of new content flow once Mumbai and some other key markets
open up.
Advertisement:
This would take a couple of months, in the event of some big-
ticket movie release.
Content outlook
Content pipeline
Films slated for Diwali include Surat Mangal Bhari, whose star cast includes
Daljit Singh and Manoj Bajpai.
Most producers are comfortable with 50% capacity at movie releases.
Local content remains moderate in Bengal, barring two mid-budget films
that saw good traction for a week. Expect some more releases in Nov-
Dec’20 to improve utilization. Screens in Sri Lanka have been shut due to the
lockdown.
The content pipeline of producers is very strong, even during lockdown, as
the creative talent wants to do more work. Hence, do not expect any impact
on the no of projects/movies. Also, considering the cashflow situation thus
far, liquidity does not seem to be a problem for larger producers.
Content cost negotiation
As there is a capacity cap in properties, there could be a minor change in
commercial arrangements with producers, but the longer term commercials
would remain intact.
OTT threat
The flow of OTT content has been reset after the aggressive content release
during the lockdown as it is not a viable win-win for the producers, OTT
players, and other stakeholders in the value chain.
Do not expect a direct-to-digital content launch to sustain beyond the next
3–6 months. However, many streaming platforms would continue to directly
launch their captive original content on their OTT platforms.
Cost-efficiency initiatives
It continues to focus on reducing cost, which is down 70%. Management is
actively vying for a reduction in rent and CAM charges, for which over 60%
of negotiations are complete. Balance negotiations are in progress and
would conclude once the cinemas have been reopened.
Rent reduction/waivers
are for the current financial year; negotiations have
not happened for the long term. Negotiations are mostly toward revenue-
share arrangements or discounts on minimum guarantees for FY21, and
should reflect a 50% discount on full-year rent.
4 November 2020
4
 Motilal Oswal Financial Services
PVR
Employee cost
would be variable in the near term. It has reduced the no of
employees sharply and hopes to maintain this level until the reopening and
until utilization levels rise. Even after operations have resumed at cinemas,
employee cost would increase, but be significantly lower v/s last year, at
least in FY21.
It would look at reducing cost structurally once the cinemas have been
restarted.
Capex and new screen adds grow
Store closures:
It ended leases for 14 properties (which expired during the
quarter) as these were not profitable and past their life cycle; it has better
properties available in the vicinity.
Inorganic opportunity stalled:
Industry consolidation would grow in the
coming quarters. But, PVR would increase capital commitment toward any
inorganic opportunity only once the business rebounds to normal levels.
Strength in new store pipeline:
The pipeline of new properties remains
strong as developers are now keen to work with large players.
Capex
is largely toward pending creditors for properties that are 70%
complete; this would continue in 2HFY21, apart from maintenance capex.
No more than 4–5 properties in the portfolio are loss-making.
Liquidity and leverage position
Liquidity:
Cash burn would go up in 3QFY21
as employee and other fixed costs would
increase as cinemas resume operations. But, with the increase in utilization
rates, operating leverage would kick in and thus improve profitability.
Healthy liquidity:
PVR is sitting on liquidity of >INR5.5b, which should allow
it to tide over the next 6–8 months. Also, if required, an additional capital
raise would be explored. It holds net debt of INR10b since the end of the
quarter.
No bad debt:
Receivables are attributed to retail advertisers, but a large portion
of the amount is received v/s March’21. The rest should also be received, with
no bad debt expectation.
4 November 2020
5
 Motilal Oswal Financial Services
PVR
Exhibit 2: Consol. quarterly performance (INR m)
Revenue
Total operating cost
EBITDA
EBITDA margin (%)
Depreciation
EBIT
Interest
Other Income
PBT
Share in Profit ad loss of JV
PBT
Tax
Tax rate (%)
PAT
MI/Share of Associate
Reported PAT
2QFY20
9,732
7,788
1,944
20.0
598
1,346
390
62
1,018
2
1,016
258
25.4
758
2
760
1QFY21
43
1,286
-1,243
-2,911.9
603
-1,847
353
83
-2,116
0
-2,116
-707
33.4
-1,409
1
-1,408
2QFY21
436
1,246
-810
NM
583
-1,393
351
0
-1,744
0
-1,744
-587
NM
-1,157
1
-1,156
YoY (%)
-95.5
-84
-142
NM
-3
NM
-10
-100
NM
NM
NM
NM
NM
NM
NM
NM
QoQ (%)
921
-3
-35
NM
-3
NM
0
-100
NM
NM
NM
NM
NM
NM
NM
NM
2QFY21E
44
1,055
-1,012
NM
635
-1,647
405
104
-1,949
0
-1,949
-653
33.5
-1,296
0
-1,296
v/s est (%)
902
18
-20
NM
-8
NM
-13
-100
NM
NM
NM
NM
NM
NM
NM
NM
Source: MOFSL, Company
Exhibit 3: Revenue breakup (INR m)
Revenue breakup
Net Box Office
Food & Beverages
Advertising
Convenience income
Other operating
2QFY20
4,567
2,604
916
406
511
1QFY21
0
14
0
0
0
2QFY21
6
37
0
0
117
YoY (%)
-99.9
-98.6
-100.0
-100.0
-77.1
QoQ (%)
NM
176.3
NM
NM
NM
Source: MOFSL, Company
Exhibit 4: KPI Snapshot
KPI
Screens
Admits ('000)
Occupancy (%)
ATP (INR)
SPH (INR)
2QFY20
785
27,000
35.0%
202
102
1QFY21
845
0
NM
NM
NM
2QFY21
831
0
0.0%
NM
NM
YoY (%)
5.9
-100.0
-100.0
NM
NM
QoQ (%)
-2%
NM
NM
NM
NM
Source: MOFSL, Company
Exhibit 5: Operating expenses breakup (INR m)
Operating expenses (INR m)
Movie exhibition cost
Consumption of food and beverages
Employee expenses
Other Expenses
Total
2QFY20
20.3
7.5
10.8
41.4
20.3
1QFY21
0.0
16.6
1,596.5
1,398.8
0.0
2QFY21
0.7
3.9
93.3
187.9
0.7
YoY (%)
-1966
-358
8256
14652
-1966
QoQ (%)
69
-1273
-150314
-121090
69
2QFY21E
0.0
0.0
1,050.0
1,375.9
0.0
v/s est (%)
69
390
-95663
-118793
69
Source: MOFSL, Company
4 November 2020
6
 Motilal Oswal Financial Services
PVR
Exhibit 6: Summary of estimate change (INR m)
Ticket Revenue (INR m)
Old
Actual/New
Change (%)
F&B Revenue (INR m)
Old
Actual/New
Change (%)
Ad Revenue (INR m)
Old
Actual/New
Change (%)
Total Revenue (INR m)
Old
Actual/New
Change (%)
EBITDA (INR m)
Old
Actual/New
Change (%)
EBITDA margin (%)
Old
Actual/New
Change (bp)
PAT (INR m)
Old
Actual/New
Change (%)
Adj. EPS (INR)
Old
Actual/New
Change (%)
FY21E
4,906
1,371
-72.1
2,659
1,287
-51.6
1,417
514
-63.7
10,320
5,035
-51.2
-2,786
-1,760
-36.8
-27.0
-35.0
-795
-4,939
-3,889
-21.3
-89.5
-70.4
-21.3
FY22E
20,154
17,295
-14.2
10,916
10,329
-5.4
2,820
2,755
-2.3
37,351
33,839
-9.4
6,168
5,829
-5.5
16.5
17.2
71
1,148
1,181
2.9
20.8
21.4
2.9
Source: MOFSL
4 November 2020
7
 Motilal Oswal Financial Services
PVR
Story in charts
Exhibit 1: Consol. revenue remains negligible
Revenue (INR m)
16 15 6 18 13 2
28
5 21 9
YoY growth (%)
51 43
26 37
9
Exhibit 2: Consol. EBITDA loss cushioned by lower opex
EBITDA (INR m)
19.7
Margin (%)
20.0
19.7
6.6
0.0 0.0
-23
-100
-96
14.8 15.1
19.0
9.7
17.6
18.2
19.5
16.3
16.1
17.5 19.218.0
^Includes SPI consolidation
Source: MOFSL, Company
^Includes SPI consolidation
Source: MOFSL, Company
Exhibit 3: Closure of three unprofitable locations
Exhibit 4: 14 screen closures in 2Q
27
Screen additions duriong the quarter
33
22
13
12 10
8
6
3
9 9
15
19
15
21 24
0
-14
*Excludes SPI cinemas
Source: MOFSL, Company
Number of seats
*Excludes SPI cinemas
Source: MOFSL, Company
Exhibit 5: Seat count declines
Exhibit 6: Lockdown hurts footfall
Footfalls (mn)
*Excludes SPI cinemas
Source: MOFSL, Company
*Excludes SPI cinemas
Source: MOFSL, Company
4 November 2020
8
 Motilal Oswal Financial Services
PVR
Financials and valuations
Consolidated – Income Statement
Y/E March
Net Sales
Change (%)
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Expense/(Income)
PBT after EO Exp.
Current Tax
Deferred Tax
Tax Rate (%)
Less: Minority Interest
Reported PAT
Adj. PAT
Change (%)
Margin (%)
FY14
13,475
67.3
2,117
15.7
944
1,173
795
113
491
32
523
140
-121
3.7
57
560
530
14.5
3.9
FY15
14,771
9.6
2,008
13.6
1,168
840
783
89
146
-22
125
2
6
6.5
11
128
148
-72.1
1.0
FY16
18,496
25.2
2,924
15.8
1,151
1,773
840
635
1,569
116
1,453
467
0
32.1
5
991
1,070
623
5.8
FY17
21,194
14.6
3,136
14.8
1,384
1,752
806
623
1,569
41
1,528
570
0
37.3
-1
958
983
-8.1
4.6
FY18
23,341
10.1
4,018
17.2
1,537
2,481
837
313
1,958
6
1,952
489
216
36.1
0
1,247
1,250
27.1
5.4
FY19
30,856
32.2
5,863
19.0
1,913
3,951
1,280
331
3,002
0
3,002
1,017
79
36.5
-68
1,838
1,838
47.0
6.0
FY20
34,144
10.7
5,762
16.9
2,324
3,437
1,521
378
2,294
5
2,288
627
0
27.4
-5
1,656
1,682
-8.5
4.9
FY21E
5,035
-85.3
-1,760
-35.0
2,432
-4,191
1,418
416
-5,194
0
-5,194
-1,307
0
25.2
2
-3,885
-3,889
-327.7
-77.2
(INR m)
FY22E
33,839
572.1
5,829
17.2
2,793
3,037
1,658
200
1,578
0
1,578
397
0
25.2
0
1,181
1,181
-130.4
3.5
Consolidated – Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
Deferred Liabilities (net)
Total Loans
Capital Employed
Gross Block
Less: Accum. Deprn.
Intangible assets- Goodwill
Net Fixed Assets
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Provisions
Net Current Assets
Appl. of Funds
E: MOFSL Estimates
FY14
411
3,582
3,993
771
4
6,133
10,902
11,889
3,723
31
8,197
806
235
4,294
106
523
273
3,392
2,631
2,392
239
1,663
10,902
FY15
415
3,677
4,092
383
11
7,470
11,956
13,356
4,784
31
8,604
611
19
5,055
126
767
267
3,895
2,333
2,161
172
2,723
11,955
FY16
467
8,345
8,812
401
-633
5,718
14,298
15,900
5,935
52
10,017
739
19
7,565
205
901
2,671
3,788
4,041
3,933
108
3,524
14,298
FY17
467
9,183
9,650
405
-424
7,301
16,933
22,335
7,319
71
15,087
1,056
20
5,662
190
1,021
299
4,152
4,892
4,788
104
771
16,933
FY18
467
10,286
10,754
8
-150
6,614
17,226
24,676
8,856
79
15,899
1,017
209
6,208
198
1,556
328
4,126
6,107
5,980
127
101
17,226
FY19
467
14,490
14,957
5
266
11,039
26,267
38,193
10,769
0
27,425
2,208
111
8,659
303
1,839
341
6,175
12,135
11,920
215
-3,477
26,267
FY20
514
14,289
14,802
3
-2,049
48,723
61,479
71,953
13,093
0
58,860
1,547
23
11,799
307
1,893
3,223
6,377
10,750
10,571
180
1,049
61,479
FY21E
552
13,359
13,911
3
-2,049
53,723
65,588
72,953
15,525
0
57,429
1,547
23
7,923
22
1,871
4,871
1,159
1,333
1,156
178
6,590
65,588
(INR m)
FY22E
552
14,540
15,092
3
-2,049
55,723
68,769
76,953
18,317
0
58,636
1,547
23
16,283
0
1,871
8,850
5,563
7,720
7,542
178
8,563
68,769
4 November 2020
9
 Motilal Oswal Financial Services
PVR
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Working Capital Turnover (Days)
Leverage Ratio (x)
Current Ratio
Debt/Equity
FY14
15.0
35.8
97.1
2.5
21.5
72.4
30.3
11.2
4.2
26.8
0.2
11.8
10.7
10.7
1.2
3
14
65
38
1.6
1.5
FY15
3.3
31.7
98.5
1.0
39.5
325.3
34.3
11.0
3.9
28.9
0.1
3.4
8.0
7.6
1.2
3
19
53
61
2.2
1.8
FY16
21.3
47.6
188.7
1.2
6.6
50.9
22.9
5.8
2.9
18.4
0.1
15.4
12.5
11.0
1.3
4
18
78
17
1.9
0.6
FY17
20.5
50.6
206.5
1.2
7.0
53.1
21.5
5.3
2.7
18.4
0.1
10.4
9.5
8.3
1.3
3
18
82
8
1.2
0.8
FY18
26.7
59.6
230.1
2.0
9.0
40.7
18.2
4.7
2.4
14.2
0.2
12.2
10.4
10.2
1.4
3
24
94
-4
1.0
0.6
FY19
37.9
80.2
320.0
2.0
6.1
28.7
13.5
3.4
2.0
10.5
0.2
13.8
12.5
12.8
1.2
4
22
141
-45
0.7
0.7
FY20
-70.4
-26.4
252.1
0.0
0.0
-15.8
-42.1
4.4
20.0
-57.3
0.0
-27.0
-4.3
-5.4
0.1
2
136
84
125
5.9
3.9
FY21E
21.4
72.0
273.5
0.0
0.0
51.9
15.4
4.1
2.9
16.9
0.0
8.1
3.5
3.9
0.5
0
20
81
-3
2.1
3.7
FY22E
-70.4
-26.4
252.1
0.0
0.0
-15.8
-42.1
4.4
20.0
-57.3
0.0
-27.0
-4.3
-5.4
0.1
2
136
84
125
5.9
3.9
Consolidated – Cash Flow Statement
Y/E March
Net Profit / (Loss) Before Tax /
EO
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(inc)/dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
(Inc)/Dec in Debt
Interest Paid
Dividend Paid
Others
Bank OD
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Bank OD
Closing Balance
E: MOFSL Estimates
FY14
523
944
743
-154
91
2,147
-15
2,132
-1,273
859
202
6
-1,065
121
-434
-812
-46
9
-1,162
-95
368
0
273
FY15
125
1,168
783
-69
-863
1,144
163
1,307
-1,691
-384
239
-356
-1,808
100
1,337
-827
-122
8
496
-6
273
0
267
FY16
1,453
1,151
840
-467
1,603
4,580
81
4,661
-2,672
1,989
0
0
-2,672
3,502
-1,752
-840
-65
-429
416
2,405
266
0
2,671
FY17
1,528
1,384
806
-570
381
3,529
268
3,797
-6,752
-2,955
-1
0
-6,753
1
1,583
-806
-68
-127
583
-2,373
2,671
0
299
FY18
1,952
1,537
837
-704
699
4,320
-163
4,157
-2,302
1,856
-190
0
-2,491
0
-687
-837
-113
0
-1,637
29
299
0
328
FY19
3,002
1,913
1,280
-1,097
4,007
9,105
-331
8,774
-14,630
-5,856
99
2,739
-11,793
0
4,425
-1,280
-113
0
3,033
14
328
-416
-74
FY20
896
5,425
4,730
-295
-2,647
8,108
-238
7,870
-3,838
4,033
0
-66
-3,903
5,041
-674
-1,151
-360
-4,965
-2,110
1,857
-74
0
1,783
FY21E
-5,194
2,432
1,418
1,307
-3,892
-3,929
-416
-4,345
-1,000
-5,345
0
416
-584
0
5,000
-1,418
0
2,996
6,577
1,648
1,783
0
4,871
(INR m)
FY22E
1,578
2,793
1,658
-397
2,004
7,637
-200
7,437
-4,000
3,437
0
200
-3,800
0
2,000
-1,658
0
0
342
3,978
4,871
0
8,850
4 November 2020
10
 Motilal Oswal Financial Services
PVR
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial products.
MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are available on
www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading
Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity
& Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository
Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory &
Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are available on the
website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should
be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant
banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from
MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or
use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong
Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act"
and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and
investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is intended for
distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional
investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document
relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule
15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order
to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities
International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL in
respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of
which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
********************************************************************************************************************************
4 November 2020
11
 Motilal Oswal Financial Services
PVR
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of
MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature.
The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,
representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed,
in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose
and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report
constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities
discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives,
financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document
should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including
the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be
suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial
risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions
contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as
endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and
alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from time to time, effect
or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to perform investment
banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a separate, distinct and
independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already
available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the
views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other
person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of
or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject
MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category
of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors,
employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may
arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees from, any
and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold
MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the person accessing this information due to any
errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth Management
Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of
Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a
group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. Research & Advisory
services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee
of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj
Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
4 November 2020
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