DQ Entertainment posts loss of Rs 109 million

MUMBAI: DQ Entertainment International has posted a loss of Rs 109.76 million in the quarter ended 30 June, 2010.

The company said the reasons for posting a loss was fluctuations of the Rupee with the other currencies resulting in an exchange loss of Rs 46.34 million on account of adverse movement of foreign currency rates against the Rupee. Additionally the company said that since most of its costs are linked to manpower cost, any increase or decrease in the top line has a disproportionate impact on its quarter-on-quarter profitability.

The company posted revenue of Rs 239.12 million for the first quarter is in line with the company’s plan for the financial year 2010-11 and in trend as per the previous years.

During the year 2010-11, DQE International will focus on development and co-development of branded and popular intellectual properties and 360 degree monetisation of the IP across various platforms of content distribution.

DQE also said that the quarterly performance is not indicative of the annual performance and is confident of achieving its targets for the financial year end as has been the trend in previous years.

"With a strong order book on place and new orders coming being received on a regular basis, DQE International is riding on the global and Indian animation and media industry growth. This trend leaves us confident on the basis of execution at production level and increasing growth of licensing revenues will help us to achieve and maintain growth for 2010-11," said the company.

DQE International has seen revenue growth at a CAGR of 39.18 per cent over the last five years and profitability growth at a CAGR of 90.97 per cent.