Multiplex major PVR has deferred its capital expenditure plans in a bid to control costs as the company braces for a significant impact on its profitability in the current fiscal due to the ongoing Covid-19 pandemic.
Cinema halls in India have remained shut since March this year, after the government imposed nationwide lockdown to check the spread of Covid-19.
“We have temporarily deferred a substantial portion of our planned capital expenditures that we were undertaking, prior to the shutdown. All major capital expenditures will now be re-assessed once the shutdown is over,” PVR Ltd Chief Operating Officer (CFO) Nitin Sood said in the company’s Annual Report for 2019-20.
PVR owns a network of 845 screens across 176 properties in 71 cities in India and Sri Lanka.
In 2019-20, PVR added 87 screens to its portfolio.
PVR, in its annual report, said since cinema exhibition is its only business segment, the