PVR Ltd rallied more than 5 per cent on Friday as the multiplex chain operator renewed its non-exclusive arrangements with Paytm and Bookmyshow for booking and selling cinema ticketing inventory for 3 years.The renewal came through web and app-based platforms, it told stock exchanges.The scrip was 6.26 per cent up at Rs 1,173.40 at around 9.25 am.
The BSE Sensex rose 230 points, or 0.62 per cent, to 37,396.15."We would like to inform that under these arrangements, PVR is entitled to receive from these aggregators an amount of Rs 410 crore towards minimum guarantee and refundable security deposit for booking PVR Cinemas ticketing inventory on their online ticketing platforms, subject to other terms and conditions of the agreements.
Out of the above amount, PVR Ltd will receive an upfront advance payment of Rs 350 crore, PVR said in a BSE filing.According to IDBI Capital Markets, the deal is positive for PVRs EBITDA and significant for its EPS, given the immediate reduction in debt by Rs 350 crore.
Our first-cut analysis suggested that FY19/20E EBITDA has upside of 4.4-5.50 per cent and FY19/20E EPS has upside of 18-21 per cent, the brokerage house said.IDBI Capital Markets added that the FB (food and beverages) issue is being tracked.
"We continue to believe that in case of a court process is followed, PVR and other multiplex players are on a strong footing.
However, the timeliness of the outcome remains uncertain, it said.