DQ Entertainment reports profit for Q2-2015 versus loss in Q2-2014: Animation segment back in black

BENGALURU:  The Tapas Chakravarti led DQ Entertainment (International) Limited (DQEIL) reported a profit after tax (PAT) of Rs 14.43 crore (27.4 per cent of Total Income from Operations or TIO) in Q2-2015 (quarter ended September 30, 2014, current quarter) versus a loss of Rs 12.06 crore in Q1-2015. PAT for the current quarter, however was down 36.5 per cent as compared to the Rs 22.72 crore(40.27 per cent of TIO). PAT in HY-2015 at Rs 2.38 crore (3.3 per cent of TIO) was less than a twelfth (1/12.4 times) the Rs 29.35 crore (33.7 per cent of TIO) in HY-2014.

Note: 100,00,000 = 100 Lakhs = 10 million = 1 crore

Two segments contribute to DQEIL revenues – animation and distribution.  The company’s animation segment which had reported operating loss of Rs 1.07 on segment revenue of Rs 9.93 crore in the previous quarter, reported an operating profit of Rs 23.62 crore on segment revenue of Rs 39.94 crore in Q2-2015. For Q2-2014, animation segment had reported operating profit of Rs 22.7 crore on higher operating revenue of Rs 41.57 crore. For HY-2015, this segment reported revenue of Rs 49.86 crore and an operating profit of Rs 16.47 crore versus higher revenue of Rs 69.14 crore and higher operating profit of Rs 29.43 crore in HY-2015.

The company’s distribution segment reported the following numbers: Q2-2015 – Revenue Rs 12.71 crore, operating profit Rs 12.02 crore; Q1-2015 – Revenue Rs 10.71 crore, operating loss Rs 1.19 crore; Q2-2014 – Revenue Rs 15 crore, operating profit Rs 9.44 crore; HY-2015 – Revenue Rs 23.41 crore, operating profit Rs 10.83 crore; HY-2014 – Revenue Rs 17.86 crore, operating profit Rs 7.58 crore.

Let us look at the other numbers reported by DQEIL for Q2-2015

DQEIL TIO in Q2-2015 at Rs 52.64 crore was more than double (2.5 times) the Rs 20.64 crore in the immediate trailing quarter, but 7 per cent lower than the Rs 56.58 crore in Q2-2014. TIO in HY-2015 at Rs 72.38 crore was 16.8 per cent lower than the Rs 87 crore in HY-2014.

The company’s total expenditure (TE) in Q2-2015 at Rs 25.24 crore (47.9 per cent of TIO) was 9 per cent less than the Rs 27.72 crore (134.3 per cent of TIO) in the previous quarter and 36.5 per cent lower than the Rs 41.77 crore (73.8 per cent of TIO). In HY-2015, TE at Rs 52.56 crore (72.6 per cent of TIO) was 33.5 per cent lower than the Rs 79.07 crore (90.9 per cent of TIO) inn HY-2014.

DQEIL’s employee expense (EBE) in Q2-2015 at Rs 15.34 crore (29.1 per cent of TIO) was 7.8 per cent lower than the Rs 16.64 crore (80.6 per cent of TIO) and 22.3 per cent lower than the Rs 19.74 crore (34.9 per cent of TIO) in Q2-2014. HY-2015 EBE at Rs 31.98 crore (44.2 per cent of TIO) was 20 per cent lower than the Rs 39.97 crore (45.9 per cent of TIO) in HY-2014.

The company’s depreciation, amortization and impairment expense (depreciation) in Q2-2015 went up 4.6 per cent to Rs 7.98 crore (15.2 per cent of TIO) from Rs 7.63 crore (36.9 per cent of TIO) in Q1-2015 and was 18.9 per cent lower than the Rs 9.84 crore (17.4 per cent of TIO) in Q2-2014. HY-2015 depreciation at Rs 15.6 crore (21.6 per cent of TIO) was 17.5 per cent less than the Rs 18.92 crore (21.7 per cent of TIO) in HY-2014.

DQEIL’s production expense  in Q2-2015 at Rs 1.78 crore (3.4 per cent of TIO) was 17.4 per cent lower than the Rs 2.15 crore (10.4 per cent of TIO) and almost 5 times the Rs 0.36 crore (0.6 per cent of TIO) in Q2-2014.  Production expense in HY-2015 at Rs 3.93 crore (5.4 per cent of TIO) was almost double (1.95 times) the Rs 2.01 crore (2.3 per cent of TIO) in HY-2014.