Motilal Oswal Financial Services

3 June 2021

4QFY21 Results Update | Sector: Media

PVR

Estimate change

TP change

Rating change

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CMP: INR1323



TP: INR1,210 (-9% )

Neutral

Cost reduction / liquidity cushions lockdown impact

PVR’s net loss came in at INR1.7b (in line), with operating loss at INR1.2b

(est. loss of INR695m), as a recovery in occupancy levels was gradual at 8%,

with 50% capacity limits. However, South Indian movies reached 50-60% of

pre covid levels and overall ATPs touched 10% below pandemic levels at

INR184 due to the lockdown caused by the second COVID wave, reflecting

pent up demand.

The second COVID wave has pushed back the business recovery to FY23E.

We are cutting our FY22E estimates closer to FY21 nos and FY23E estimates

by 11%/8% to INR38b/INR7b (13%/21% above FY20 levels), respectively.

Maintain Neutral.

PVR’s 4QFY21 revenue fell 70% YoY to INR1.9b (up 3x QoQ, in line) as

cinema operators were forced to shut due to the second COVID wave.

Fixed opex is down 50% YoY, but jumped 80% QoQ to INR3b as cinemas

were operational in 4QFY21.

Rental expenses stood at INR709m (-49% YoY), post negotiations with

developers, while CAM charges fell 23% to INR301m.

Employee expenses reduced to INR596m (-22% YoY), led by temporary

salary cuts and reduction in headcount. The same has increased 23% QoQ

as cinemas resumed operations.

On a pre-Ind-AS 116 basis, operating loss stood at INR1.2b v/s an EBITDA of

INR428m YoY (v/s our operating loss estimate of INR695m) due to higher

than anticipated operating cost.

Net loss stood at INR1.7b (in line) v/s a net loss of INR346m in 4QFY20.

Gross/net debt stood at INR11b/INR3.6b as the company has cash and CE

worth INR7.3b (led by recent fund raise rounds of INR11b).

PVR closed three screens in 4QFY21. Its total screen count stands at 842.

Business recovery:

The management remains confident of a business

recovery post COVID-19, given the strong demand witnessed in Jan-Mar’21,

before the second wave, in line with global trends; strong movie content

line up expected post relaxation of lockdown restrictions; and robust

traction in South Indian movies (operating at 50-60% of pre-COVID levels)

contributing 35-40% of PVR’s revenues.

Cost measures:

It is negotiating rental waivers and will continue to operate

at lower fixed costs until the business revives. The management expects

fixed cost to reduce by 10-15% on a sustainable basis.

Capex and screen pipeline:

All capex is on hold at present, but PVR has 19

screens ready for handover and a very large pipeline of WIP projects, so

screen addition will be strong once the pandemic ends.

Debt repayment

is evenly spread, with INR2-3b debt due over the next few

years. It will decide on repayment/refinancing depending on the situation.



Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

12M Avg Val (INR M)

PVRL IN

80.3 / 1.1

1592 / 925

10/-17/-15

2787

Operating losses rise as cinemas operate at relaxed capacity



Financials & Valuations (INR b)

FY21 FY22E FY23E

Y/E March

Sales

3.0

5.8 38.4

EBITDA

-4.3

-4.4

7.0

Adj. PAT

-5.7

-6.2

2.1

EBITDA Margin (%) -143.1 -75.3 18.1

Adj. EPS (INR)

-93.2 -102.8 35.0

EPS Gr. (%)

NM -134.0

BV/Sh. (INR)

301.7 198.9 233.9

Ratios

Net D:E

2.2

4.3

3.4

RoE (%)

NM 16.2

RoCE (%)

NM 13.4

Payout (%)

0.0

Valuations

P/E (x)

NM 37.7

P/BV (x)

4.4

6.6

5.6

EV/EBITDA (x)

NM 13.3

Div Yield (%)

0.0

Shareholding pattern (%)

As On

Mar-21 Dec-20 Mar-20

Promoter

17.1

18.8

18.5

DII

24.5

26.6

34.7

FII

42.6

38.5

38.4

Others

15.8

16.1

8.4

FII Includes depository receipts



Highlights from the management commentary



Aliasgar Shakir - Research Analyst

(Aliasgar.Shakir@motilaloswal.com)

Suhel Shaikh

Research Analyst

(Suhel.Ahmad@MotilalOswal.com)

Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Investors are advised to refer through important disclosures made at the last page of the Research Report.

4 November 2020

PVR

Valuation and view



PVR’s profitability and business scale are expected to remain muted over the

next 1-2 years as Cinemas have again been closed until COVID-19 cases drop

significantly.

While movies released during Jan-Mar’21 witnessed decent footfalls at theatres,

instability over the movie pipeline, and delayed releases remain a concern for

the business in the near term.

PVR’s negotiation in rental charges and a sharp drop in employee and other

expenses have been a great relief. The management expects fixed costs to

reduce 10-15% over the long term.

With ~INR7.3b in liquidity, PVR has sufficient cash to meet its fixed expenses

over the next 3-4 quarters. Further reduction in rentals/CAM would aid cost

savings.

As highlighted in our recent report (click

here),

the rising trend of movie

releases over OTT platforms since the onset of COVID-19 and the strong growth

in subscriber base raises concerns of increased competition from OTT platforms

in the medium to long term.

We expect the business to normalize by FY23E, with revenue/EBITDA touching

FY20 levels of INR38b/INR7b, but the rich valuations it commanded historically

may contract. We value the company at 11x FY23E EBITDA to arrive at our TP of

INR1,210/share. Maintain Neutral.

(INR M)

Var.

(%)

-3

1.4

137

-19

-125

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 and Profit/Loss of Asso. Cos.

Reported PAT

Adj. PAT

YoY Change (%)

E: MOFSL estimates

8,804

26.4

7,217

1,587

15.6

549

414

691

690

104

15.1

586

12.0

FY20

9,732 9,157

37.3

8.6

7,788 7,355

1,944 1,802

56.8

9.7

598

563

390

392

1,018

929

1,016

928

258

221

25.4

23.8

760

708

760

708

130.2

36.7

6,451

-23.0

6,023

428

-73.4

614

325

167

-344

-345

-12.8

-388

-346

-174.0

-99.5

1,286

-1,243

-178.4

603

353

-2,116

-2,118

(707)

33.4

-1,410

-340.6

FY21

436

634

-95.5

-93.1

1,246 1,722

-810 -1,088

-141.7 -160.4

583

585

351

402

-1,744 -2,075

-1,749 -2,075

(587)

(707)

33.6

34.1

-1,161 -1,366

-252.7 -293.1

FY20

1,909

-70.4

3,091

-1,183

-376.3

612

384

-2,179

(444)

20.4

-1,735

401.8

FY21

FY21E

4QE

1,845

-71.4

2,540

-695

-262.3

661

312

106

-1,562

113

-7.2

-1,675

384.5

34,144

3,021

10.7

-91.2

28,382

7,345

5,762 -4,324

-1.7 -175.0

2,324

2,383

1,521

1,490

378

2,294 -8,114

2,289 -8,114

627.4 -2445.1

27.4

30.1

1,666 -5,671

1,708 -5,671

-7.1 -432.1

3 June 2021

PVR

Key performance indicators

Y/E March

Number of properties

Additions

Number of screens

Screen Additions

Occupancy rate (%)

Average ticket price (INR)

167

785

202

18.0

11.8

6.7

FY20

170

800

196

20.0

13.8

7.8

172

821

203

19.7

13.5

7.7

176

845

204

6.6

-2.9

-5.4

176

845

FY21

173

-3

831

-14

FY20

175

845

164

176

842

-3

194

-62.0

-94.0

-90.9

176

845

201

16.9

10.1

5.0

FY21

178

852

-143.1

-222.0

-187.7

EBITDA Margin (%)

EBIT Margin (%)

PAT Margin (%)

E: MOFSL estimates

Other highlights

Operating parameters and business updates



Gross/net debt stood at INR11b/INR3.6b as the company has cash and CE worth

INR7.3b (led by recent fund raise rounds of INR11b).

PVR closed three screens in 4QFY21. Its total screen count stands at 842.

Footfalls stood at 5.8m (-70% YoY, +6x QoQ).

Occupancy rates improved to 8.1%, still below pre-COVID levels of ~35%.

Average ticket prices stood at INR183 (-10% YoY, +12% QoQ), while spends per

head stood at INR95 (-1% YoY, flat QoQ).

The South Indian box office continued to perform well, with movies like Master,

Uppena, Jathi Ratnalu, Vakeel Saheb, Sulthan,

and Kong v/s Godzilla leading the

business recovery.

The last 15 days of 4QFY21 were marked by a resurgence of COVID-19 cases in

Maharashtra, Gujarat, and Madhya Pradesh, resulting in restrictions being put

on operations in these markets. All screens were shut during 1QFY22 on account

of the second COVID wave.

Impact of the second COVID wave on the business



PVR’s screens were shut across India in a staggered manner in Apr’21, except for

cinemas in Telangana and Andhra Pradesh, which were shut in the first week of

May’21.

In terms of content, release of big-budget movies scheduled in 1QFY22 have

largely been postponed. These releases may get delayed by a few months till

cinemas are allowed to restart operations.

Operational and fiscal steps to ensure continuity



PVR achieved a significant (63%) reduction in total operating cost to INR63.6b

during the lockdown period in FY21. Rent and CAM/personnel/electricity and

water charges/other overheads reduced by 71%/45%/72%/60%. The

management expects this to continue in FY22, though the quantum of reduction

is under negotiation with landlords.

In Apr’21, PVR had liquidity (including undrawn working capital lines) of over

INR7.5b, including the INR8b QIP issue during Jan’21. It cumulatively raised

INR16b (INR11b/INR5b through equity/debt).

3 June 2021

PVR



Creditor/vendor dues relating to FY21 and an outstanding amount as of Mar’21

has been cleared, but future payment timelines are under negotiations to

preserve liquidity.

PVR opened 13 new screens in FY21, which were already under fit-out prior to

the lockdown. It has not taken any fresh handovers since the beginning of the

pandemic. All additional capex plans for new screens are on hold.

It has reasonable liquidity to meet all its debt and interest obligations for the

next few months, and will arrange sufficient liquidity as and when required.

South Indian seeing strong traction



Though there were no major Bollywood or Hollywood movie releases in 4QFY21,

the Southern film industry, which saw new movie releases, showed a strong

recovery.

Despite capacity restrictions, the South Indian box office continued to perform

strongly with movies like Master,

Uppena, Jathi Ratnalu, Vakeel Saheb, Sulthan,

etc.

Exhibit 1: Valuation summary

Particulars

EBITDA FY23E (INR m)

Multiple (x)

EV (INR m)

Net debt (INR m)

Target market capitalization (INR m)

No. of shares

Target price

CMP

Upside

INR m

6,958

77,237

3,695

73,541

60.8

1,210

1,323

-9%

Source: MOFSL, Company

Key highlights from the management interaction



Business recovery:

The management remains confident of a business recovery

post COVID-19, given the strong demand witnessed in Jan-Mar’21, before the

second wave, in line with global trends; strong movie content line up expected

post relaxation of lockdown restrictions; and robust traction in South Indian

movies (operating at 50-60% of pre-COVID levels) contributing 35-40% of PVR’s

revenues.

Cost measures:

It is negotiating rental waivers and will continue to operate at

lower fixed costs until the business revives. The management expects fixed cost

to reduce by 10-15% on a sustainable basis.

Capex and screen pipeline:

All capex is on hold at present, but PVR has 19

screens ready for handover and a very large pipeline of WIP projects, so screen

addition will be strong once the pandemic ends.

Debt repayment

is evenly spread, with INR2-3b debt due over the next few

years. It will decide on repayment/refinancing depending on the situation.

Fund raise:

The company raised INR16b in FY21, of which INR11b/INR5b was

through equity/debt.

Operational performance



3 June 2021

PVR



Pent up demand:

Globally, there has been pent up demand for theatrical

movies. The same has been witnessed post lifting of the lockdown in many

western nations.

Movie traction:

Many Hollywood and South Indian movies have been released

in the past few months and have seen good traction at the Indian box office.

Theatrical route:

Most film distributors are expected to wait until theatres re-

open as theatres constitute 50-60% of a film’s revenue. Almost all of Hollywood

top grossing revenue have taken the theatrical release route.

Radhe

can be

considered as an experiment by producers to launch a large budget movie on an

OTT platform. Pay per view model is not expected to scale in Indian markets and

is unlikely that other large movies will take the OTT route.

Single screens:

India has ~3,000 single screens, and ~10% of single screens may

not reopen on account of the financial distress during the lockdown, which may

benefit larger multiplex operators. Many single screen holders are now given

the option to convert a part of their real estate for other business purposes.

Demand from these single screens would be absorbed by multiplexes in the

vicinity.

Movie lineup

was quite strong before the second COVID wave. Many Hindi,

Hollywood, and South Indian movies have been lined up for release.

South Indian films

contributed greatly during the revival and is operating at 50-

60% of pre-COVID levels. The South Indian region contributes 35-36% of total

revenue and PVR market share grew during Jan-Mar’21.

Business outlook



Rent negotiation:

PVR is in negotiations with most landlords and developers for

rental waivers due to the lockdown caused by the second COVID wave.

The management remains confident of a

business recovery

as strong demand

was witnessed (Jan-Mar’21) before the second COVID wave.

Movie launch:

Large ticket size Hindi movies are expected to hit theatres post

relaxation of operating norms, along with the launch of Hollywood movies.

Cost measures:

The management will continue to reduce costs and operate at

lower fixed costs until the business revives. It expects long-term fixed cost

reduction of 10-15%.

Screen pipeline:

Around 19 screens are almost ready and in the final stages of

opening. A large number of screens are WIP and will re-commence once the

business normalizes.

The

capex

program would take a back seat until there is clarity over the

reopening of the economy.

Tax:

PVR will stay on the old tax regime for the next 2-3 years and will then

move to the new regime of 25% corporate tax.

Debt repayment

of INR2-3b per year is evenly spread over the next 4-5 years.

Content revival:

There is no reduction in opportunities for roles and production,

reflecting strong demand for movies in the long run. Supply of movies will be

high as cinemas open up. Content production will be above CY19 levels once

conditions normalize.

3 June 2021

PVR

Exhibit 2: Consolidated quarterly performance (INR m)

Revenue

Total operating cost

EBITDA

EBITDA margin (%)

Depreciation

EBIT

Interest

Other Income

PBT

Share in Profit & Loss of JV

PBT

Tax

Tax rate (%)

PAT

MI/Share of Associate

Reported PAT

4QFY20

6,451

6,023

428

6.6

614

-186

325

167

-344

-345

-390

-388

3QFY21

634

1,722

-1,088

585

-1,672

402

-2,075

-707

-1,367

-1,366

4QFY21

1,909

3,091

-1,183

612

-1,795

384

-2,179

-444

-1,735

YoY (%)

-70.4

-49

-376

-100

QoQ (%)

201

-5

4QFY21E

1,845

2,540

-695

661

-1,356

312

106

-1,562

113

Var. (%)

-7

-100

-1,675

Source: MOFSL, Company

Exhibit 3: Revenue breakup (INR m)

Revenue breakup

Net Box Office

Food & Beverages

Advertising

Convenience income

Other operating

4QFY20

4,921

2,697

938

457

147

3QFY21

134

140

304

4QFY21

879

565

136

253

YoY (%)

QoQ (%)

-82.1

558.4

-79.1

302.6

-85.5

221.8

-100.0

71.4

-16.8

Source: MOFSL, Company

Exhibit 4: KPI snapshot

KPI

Screens

Admits ('000)

Occupancy (%)

ATP (INR)

SPH (INR)

4QFY20

845

19,500

33.4%

204

3QFY21

845

1,000

1.4%

164

4QFY21

842

5,800

8.1%

183

YoY (%)

QoQ (%)

-0.4

-70.3

480%

-75.9

666

-10.3

-1.0

Source: MOFSL, Company

Exhibit 5: Breakup in operating expenses (INR m)

Operating expenses (INR m)

Movie exhibition cost

Consumption of Food and Beverages

Employee expenses

Other Expenses

Total

4QFY20

1,436

512

765

3,311

6,023

3QFY21

486

1,117

1,722

4QFY21

407

176

596

1,911

3,091

YoY (%)

-71.6

-65.6

-22.0

-42.3

-48.7

QoQ (%)

560.1

206.8

22.8

71.1

79.5

4QFY21E

Var. (%)

277

47.1

90.9

314

90.1

1,857

2.9

2,540

21.7

Source: MOFSL, Company

3 June 2021

PVR

Exhibit 6: Summary of estimate change (INR m)

FY22E

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 (%)

18,680

3,322

-82.2

10,322

1,010

-90.2

2,722

284

-89.6

35,184

5,799

-83.5

5,643

-4,367

-177.4

16.0

-75.3

-9135

1,041

-6,246

-699.9

17.1

-102.8

-699.6

FY23E

23,255

21,840

-6.1

12,586

11,208

-11.0

2,999

3,158

5.3

43,198

38,433

-11.0

7,569

6,958

-8.1

17.5

18.1

2,226

2,125

-4.5

36.7

35.0

-4.6

Source: MOFSL

3 June 2021

PVR

Story in charts

Exhibit 7: Consolidated revenue declines 70% YoY

Revenue (INR m)

YoY growth (%)

Exhibit 8: Consolidated EBITDA loss at INR1.2b

EBITDA (INR m)

Margin (%)

^Includes SPI consolidation

Source: MOFSL, Company

^Includes SPI consolidation

Source: MOFSL, Company

Exhibit 9: Trend in Cinema property additions

Exhibit 10: Closed three screens in 4QFY21

Screen additions during the quarter

12 10

9 9

-3

-14

*Excludes SPI cinemas

Source: MOFSL, Company

*Excludes SPI cinemas

Source: MOFSL, Company

Exhibit 11: Seat count trend remains flat

Number of seats ('000)

Exhibit 12: Lockdown hurts footfalls

Footfalls (million)

Source: MOFSL, Company

3 June 2021

PVR

Financials and valuations

Consolidated Income Statement

Y/E March

Net Sales

Change (%)

Total Production Expenses

Personnel Expenses

Rent

Administrative and Other Expenses

Total Expenditure

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 (%)

FY15

14,771

9.6

4,809

1,430

2,735

3,789

12,763

2,008

13.6

1,168

840

783

146

-22

125

6.5

128

148

-72.1

1.0

FY16

18,496

25.2

5,446

1,859

3,316

4,950

15,571

2,924

15.8

1,151

1,773

840

635

1,569

116

1,453

467

32.1

991

1,070

623

5.8

FY17

21,194

14.6

6,053

2,205

3,902

5,899

18,058

3,136

14.8

1,384

1,752

806

623

1,569

1,528

570

37.3

-1

958

983

-8.1

4.6

FY18

23,341

10.1

6,967

2,541

4,111

5,703

19,323

4,018

17.2

1,537

2,481

837

313

1,958

1,952

489

216

36.1

1,247

1,250

27.1

5.4

FY19

30,856

32.2

9,407

3,373

5,091

7,122

24,992

5,863

19.0

1,913

3,951

1,280

331

3,002

1,017

36.5

-68

1,838

47.0

6.0

FY20

34,144

10.7

9,971

3,938

5,659

8,815

28,382

5,762

16.9

2,324

3,438

1,521

378

2,294

2,289

627

27.4

-5

1,657

1,708

-7.1

5.0

FY21

3,021

-91.2

730

2,171

1,196

3,249

7,345

-4,324

-143.1

2,383

-6,707

1,490

-8,114

-2,445

30.1

-5,665

-5,678

-432.4

-187.9

FY22E

5,799

91.9

1,431

2,174

2,142

4,418

10,166

-4,367

-75.3

2,502

-6,869

1,570

-8,347

-2,101

25.2

-6,246

10.0

-107.7

(INR m)

FY23E

38,433

562.8

11,223

4,612

6,457

9,184

31,475

6,958

18.1

2,888

4,070

1,321

2,840

715

25.2

2,125

-134.0

5.5

Consolidated Balance Sheet

Y/E March

Equity Share Capital

Total Reserves

Net Worth

Minority Interest

Deferred Liabilities (net)

Total Loans

Lease Liabilities

Capital Employed

Gross Block

Less: Accum. Deprn.

Intangible assets – Goodwill

Net Fixed Assets

Right to use Assets

Capital WIP

Total Investments

Curr. Assets, Loans and Adv.

Inventory

Account Receivables

Cash and Bank Balance

Loans and Advances

Curr. Liability and Prov.

Account Payables

Provisions

Net Current Assets

Appl. of Funds

FY15

415

3,677

4,092

383

7,470

11,956

13,356

4,784

8,604

611

5,055

126

767

267

3,895

2,333

2,161

172

2,723

11,956

FY16

467

8,345

8,812

401

-633

5,718

14,298

15,900

5,935

10,017

739

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

15,087

1,056

5,662

190

1,021

299

4,152

4,892

4,788

104

771

16,933

FY18

467

10,286

10,754

-150

6,614

17,226

24,676

8,856

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

266

11,039

26,267

38,193

10,769

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

-2,049

48,723

37,715

61,479

71,953

13,093

58,860

30,047

1,547

11,799

307

1,893

3,223

6,377

10,750

10,571

180

1,049

61,479

FY21

608

17,726

18,334

-3,987

47,524

36,512

61,871

70,227

15,476

54,751

27,554

2,172

14,106

250

307

7,314

6,235

9,161

8,909

252

4,945

61,871

FY22E

608

11,480

12,088

-3,987

47,524

36,512

55,625

74,227

17,978

56,249

27,554

2,172

-1,467

1,871

-4,291

953

1,331

1,154

178

-2,799

55,625

(INR m)

FY23E

608

13,605

14,213

-3,987

45,524

36,512

55,750

78,227

20,866

57,361

27,554

2,172

4,729

1,871

-3,459

6,318

8,515

8,337

178

-3,785

55,750

3 June 2021

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

FY15

3.3

31.7

98.5

1.0

39.5

395.9

41.8

13.4

5.9

43.6

0.1

3.4

8.0

7.6

1.2

2.2

1.8

FY16

21.3

47.6

188.7

1.2

6.6

62.0

27.8

7.0

4.5

28.5

0.1

15.4

12.5

11.0

1.3

1.9

0.6

FY17

20.5

50.6

206.5

1.2

7.0

64.6

26.1

6.4

4.1

27.9

0.1

10.4

9.5

8.3

1.3

1.2

0.8

FY18

26.7

59.6

230.1

2.0

9.0

49.6

22.2

5.8

3.7

21.6

0.2

12.2

10.4

10.2

1.4

-4

1.0

0.6

FY19

37.9

80.2

320.0

2.0

6.1

34.9

16.5

4.1

3.0

15.5

0.2

13.8

12.5

12.8

1.2

141

-45

0.7

FY20

32.2

78.5

288.3

0.0

41.1

16.8

4.6

3.7

21.8

0.0

11.1

10.7

11.7

0.6

113

-23

1.1

3.3

FY21

-93.2

-54.2

301.7

0.0

4.4

39.9

0.0

1,076

-286

1.5

2.6

FY22E

-102.8

-61.6

198.9

0.0

-12.9

-21.5

6.7

22.8

-21.9

0.0

-41.1

-19.3

-27.7

0.1

118

-1.1

3.9

FY23E

35.0

82.5

233.9

0.0

37.8

16.0

5.7

3.4

13.3

0.0

16.2

13.4

14.6

0.7

-3

0.6

3.2

Consolidated Cash Flow Statement

Y/E March

Net Profit/(Loss) Before Tax/EO

Depreciation

Interest and 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

CF from Fin. Activity

Inc./Dec. in Cash

Add: Beginning Balance

Closing Balance

Bank OD

Net Closing Balance

FY15

125

1,168

783

-69

-863

1,144

163

1,307

-1,691

-384

239

-356

-1,808

100

1,337

-827

-122

496

-6

273

267

FY16

1,453

1,151

840

-467

1,603

4,580

4,661

-2,672

1,989

-2,672

3,502

-1,752

-840

-65

-429

416

2,405

266

2,671

FY17

1,528

1,384

806

-570

381

3,529

268

3,797

-6,752

-2,955

-1

-6,753

1,583

-806

-68

-127

583

-2,373

2,671

299

FY18

1,952

1,537

837

-704

699

4,320

-163

4,157

-2,302

1,856

-190

-2,491

-687

-837

-113

-1,637

299

328

FY19

3,002

1,913

1,280

-1,097

4,007

9,105

-331

8,774

-14,630

-5,856

2,739

-11,793

4,425

-1,280

-113

3,033

328

341

FY20

896

5,425

4,730

-295

-2,647

8,108

-238

7,870

-3,838

4,033

-66

-3,903

5,041

-674

-1,151

-360

-4,965

-2,110

1,857

-74

1,783

1,441

3,223

FY21

-9,388

5,748

4,949

-803

578

-4,705

-4,127

-1,166

-5,293

-1,720

-2,886

10,931

1,768

-982

-962

10,755

3,742

1,783

5,524

1,790

7,314

FY22E

-8,347

2,502

1,570

2,101

-3,861

-6,036

-91

-6,127

-4,000

-10,127

-3,909

-1,570

-11,606

5,524

-6,082

1,790

-4,291

(INR m)

FY23E

2,840

2,888

1,321

-715

1,819

8,153

-91

8,062

-4,000

4,062

-3,909

-2,000

-1,321

-3,321

832

-6,082

-5,250

1,790

-3,459

3 June 2021

PVR

Explanation of Investment Rating

Investment Rating

BUY

SELL

NEUTRAL

UNDER REVIEW

NOT RATED

Expected return (over 12-month)

>=15%

< - 10%

< - 10 % to 15%

Rating may undergo a change

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

associate

entities

Motilal

Oswal

Financial

Services

Limited

are

available

the

website

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

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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

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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

********************************************************************************************************************************

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

3 June 2021

PVR

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.

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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

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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

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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

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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

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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.

3 June 2021