BENGALURU: The Tapaas Chakravarti led DQ Entertainment (International) Limited (DQEIL) reported a profit after tax (PAT) of Rs 2.24 crore (9.3 per cent of Total Income from Operations or TIO) in Q3-2015 (quarter ended 30 December 2014, current quarter) versus a loss of Rs 12.39 crore in Q3-2014. PAT for the current quarter, however was down to less than a third (down by 70.5 per cent) as compared to the Rs 14.43 crore(2.47 per cent of TIO). PAT in 9M-2015 at Rs 6.61 crore (5.6 per cent of TIO) was less than a one fourth (down 76.5 per cent) the Rs 28.11 crore (20.4 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 reported an operating profit of Rs 19.93 crore on segment revenue of Rs 22.61 crore in Q3-2015. For Q3-2014, animation segment had reported operating profit of Rs 20.56 crore on higher operating revenue of Rs 37.88 crore, while in Q2-2015, the segment reported revenue of Rs 39.94 crore and an operating profit of Rs 23.62 crore. For 9M-2015, this segment reported revenue of Rs 72.47 crore and an operating profit of Rs 46.51 crore versus higher revenue of Rs 107.03 crore and higher operating profit of Rs 59.34 crore in 9M-2014.
The company’s distribution segment reported the following numbers: Q3-2015 – Revenue Rs 23.1 crore, operating profit Rs 15.37 crore; Q3-2014 – Revenue Rs 12.97 crore, operating profit Rs 6.49 crore; Q2-2015 – Revenue Rs 12.71 crore, operating profit Rs 12.02 crore; 9M-2015 – Revenue Rs 46.51 crore, operating profit Rs 26.2 crore; 9M-2014 – Revenue Rs 30.83 crore, operating profit Rs 14.01 crore.
Let us look at the other numbers reported by DQEIL for Q3-2015
DQEIL TIO in Q3-2015 was 10.1 per cent lower at Rs 45.71 crore versus the Rs 50.85 crore in the corresponding year ago quarter and 13.2 per cent less than the Q2-2015 revenue at Rs 52.64 crore. TIO in 9M-2015 at Rs 118.99 crore was 13.7 per cent lower than the Rs 137.85 crore in 9M-2014.
The company’s total expenditure (TE) in Q3-2015 at Rs 28.48 crore (62.3 per cent of TIO) was 26 per cent lower than the Rs 38.5 crore (75.7 per cent of TIO) in Q3-2014 and 12.9 per cent more than the Rs 25.24 crore (47.9 per cent of TIO) in the immediate trailing quarter. In 9M-2015, TE at Rs 81.15 crore (68.2 per cent of TIO) was 31 per cent lower than the Rs 117.56 crore (85.3 per cent of TIO) inn 9M-2014.
DQEIL’s employee expense (EBE) in Q3-2015 was Rs 18.15 crore (39.7 per cent of TIO) which was 2.7 per cent lower than the Rs 18.64 crore (36.7 per cent of TIO) in the corresponding last year’s quarter and 18.3 per cent more than the Q2-2015 EBE at Rs 15.34 crore (29.1 per cent of TIO). 9M-2015 EBE at Rs 50.13 crore (42.1 per cent of TIO) was 14.5 per cent lower than the Rs 58.61 crore (42.5 per cent of TIO) in 9M-2014.
The company’s depreciation, amortization and impairment expense (depreciation) in Q3-2015 at Rs 7.56 crore (16.5 per cent of IO) was 24.7 per cent lower than the Rs 10.05 crore (19.8 per cent of TIO) in Q3-2014 and 5.2 per cent less than the Rs 7.98 crore (15.2 per cent of TIO) in the preceding quarter. 9M-2015 depreciation at Rs 23.16 crore (19.5 per cent of TIO) was 20 per cent less than the Rs 28.97 crore (21 per cent of TIO) in 9M-2014.
DQEIL’s production expense in Q3-2015 at Rs 0.95 crore (2.1 per cent of TIO) was 38.6 per cent lower than the Rs 1.55 crore (3 per cent of TIO) in Q3-2014 and 38.6 per cent less that the Rs 1.78 crore (3.4 per cent of TIO) in Q2-2015. Production expense in 9M-2015 at Rs 4.88 crore (4.1 per cent of TIO) was 37.1 per cent more than the Rs 3.56 crore (2.6 per cent of TIO) in 9M-2014.
The company says that it is making progress with the recovery of receivables. Out of the old outstanding, DQEIL has recovered Rs 32.66 crore as at the first week of February 2015. Another Rs 36 crore is expected to be recovered by 31 March 2015. The company has received commitments from certain of its clients which lead the Board of DQEIL India to believe that it may be possible to significantly reduce old receivables by September 2015.
The company explains that the reduction in production revenue in the current quarter is on account of the capitalization of the production of IP ‘Peter Pan Season 2’. Further, new productions that were scheduled to commence in the previous quarter, were delayed and hence the production revenue for the current year is expected to be lower than the previous year. The productions of ‘Lassie’ and ‘Robin Hood’ have been completed in the previous quarter, further informs the company.
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