Shares of multiplex chain PVR Ltd fell more than 3 percent during early trade on Tuesday even as cinema lovers seem to be slowly returning to multiplexes, with PVR witnessing increased footfall after Diwali releases.
“I feel this is a passing phase and we will come out much stronger,” CEO Gautam Dutta told CNBC-TV18, adding that several big movies were lined up for release.
The key to getting the crowds back to multiplexes would be to follow strict Covid-19 protocols, said Dutta.
Dutta also said that theatres in South India performed strongly while business at Punjab’s multiplexes had been better than pre-pandemic days.
Revenues from the Food & Beverage segment have surged, while advertising was yet to pick up. “The third quarter will be much better than the second,” he said, adding that prices had gone up on the back of some good showing in recent months.
“We have worked on the cost structure to keep them under control,” Dutta said.
Theatres and cinema halls have been shut for the most part since the outbreak of the Covid-19 pandemic. However, with restrictions being eased and vaccination levels going up, the crowds have been returning to enjoy the theatre experience. Shares of cinema stocks have spiked over the last few months.
The PVR scrip opened the day at Rs 1,438 and was trading in the red in morning trade, down 2.64 percent.