India Ratings and Research (Ind-Ra) has assigned PVR Limited a Long-Term Issuer Rating of 'IND AA' and simultaneously placed it on Rating Watch Negative (RWN).
Ind-Ra has taken a consolidated view of PVR and its subsidiaries while arriving at the rating, due to the close strategic and operational linkages among them.
The rating factors in PVR's strong business profile, supported by its market leadership in the under-penetrated Indian movie exhibition market, and moderate-but-healthy growth in key operational metrics such as admittances, average ticket price and spend per head. PVR's financial profile is supported by strong revenue growth and a robust margin profile, leading to healthy cash flow from operations and return on capital employed. PVR's financial profile is bolstered by its qualified institutional placement (QIP) of INR5 billion in October 2019, which the company shall predominantly utilise to repay debt and fund capex. The rating is constrained by the presence of credit risks in form of PVR's rising exposure to volatile advertisement revenues and high capital expenditure given bullish organic screen growth targets, along with potential adverse regulatory developments.
The RWN reflects the outbreak of novel Coronavirus (COVID-19), in the wake of which the government of India announced the closure of cinema halls in many states till 31 March 2020, which may impact cash flows in the nearterm. Ind-Ra shall continue to monitor the situation and its resultant impact on PVR's liquidity and financial position.
Shares of PVR LTD. was last trading in BSE at Rs.1313.95 as compared to the previous close of Rs. 1200.65. The total number of shares traded during the day was 101075 in over 5696 trades.
The stock hit an intraday high of Rs. 1367.1 and intraday low of 1162.8. The net turnover during the day was Rs. 125914220.