MUMBAI: Despite a bleak global economic scenario, almost flat net revenues, the Tapaas Chakravarti led Hyderabad based DQ Entertainment (International) Ltd, (DQE) showed a 13 per cent growth in profits for FY-2013. DQE returned a net profit for FY-2013 at Rs 37.30 crore as compared to Rs 33 crore in the last fiscal year due to lower production costs and lower tax outgo.

DQE announced its FY-2013 results with a slight improvement in top line revenue at Rs 229.4 crore in FY-2013 as against Rs 227.19 crore in FY-2012.

In his chairman?s statement to the bourses, Chakravati said, "EBIDTA margins to revenue increased to 49 per cent in 2013 from 44 per cent in 2012 due to the well planned and structured cost reduction and production efficiencies across the organisation."

The company also posted a steep rise in its consolidated Q4-2013 net profit at Rs 23.3 crore as against Rs 7.85 crore in the corresponding quarter of 2012. As a matter of fact, profits during Q4-2013 contributed a huge chunk to the company?s annual profits.

DQE is a global player in the creation, production, distribution, licensing and marketing of various forms of entertainment. The company is a major player in the country in animation production capacity for television, feature films, home video, online game art, visual effects, mobile and next generation console games.

Let us look at the Q4-2013 financials as against Q4-2012

Revenues in Q4-2013 moved up by 22 per cent to Rs 88.54 crore as against Rs 72.51 crore in Q4-2012. Expenses for Q4-2013 were slightly higher at Rs 59.26 crore in Q4-2013 when compared to Rs 58.59 crore in Q4-2012. Production expenses in Q4-2013 saw a steep fall at Rs 6.53 crore vs Rs 19 crore in the corresponding quarter last year.

As mentioned above the net profit in Q4-2013 rose substantially to Rs 23.3 crore as against 7.85 crore in Q4-2012, up by 196.8 per cent.

Let us look at the Q4-2013 financial trend as against Q3-2013

Surpassing all the three previous quarters, total revenue in Q4-2013 shot up to Rs 88.54 crore, a 94 per cent rise as against Rs 45.6 crore in the immediate preceding quarter (Q3-2013).

Expenses also surged to Rs 59.25 crore in Q4-2013 as against Rs 30.22 crore during Q3-2013. Production costs at Rs 6.5 crore in Q4-2013 rose by over Rs 2.5 crore, while depreciation/amortisation more than doubled to Rs 24.15 crore in Q4-2013 as against Rs 10.29 crore in Q3-2013. Employee expenses also chipped in Rs 20.37 crore in Q4-2013.

Net profit at Rs 23.29 crore in Q4-2013 as against Rs 8.91 crore in Q3-2013 resulted in higher Earnings per share (EPS) to Rs 2.94 over the quarter as against Rs 1.12 during Q3-2013.

Let us look at the consolidated FY-2013 results as against FY-2012

Even though the global economic scenario in the financial year 2013 continued weak, DQE generated strong top line revenue at Rs 229.40 crore, the revenue during FY-2012 was Rs 227.19 crore.

Expenses at Rs 168.82 crore in FY-2013 were almost similar to Rs 169.64 crore in FY-2012. Production expenses were lower at Rs 17.86 crore in FY-2013 as against Rs 24.34 crore in FY 2012. Tax expenses also dropped for the year FY-2013 to Rs 3.99 crore from Rs 9.96 crore in FY-2012.

As mentioned earlier, net profit for FY-2013 was 13 per cent higher at Rs 37.30 crore as compared to Rs 33 crore in FY-2012.

Outlook

During FY-2013, DQE says that it repaid term loans to the extent of Rs 14.6 crore and invested Rs 113-6 crore for development of its intellectual properties and co-production investment, the majority of which went towards pre-production of ?The Jungle Book? feature film.

DQE?s home grown IP Peter Pan has just been released in the worldwide market and it says that it has signed pre-sale contracts with various broadcasters worldwide.

"The production pipeline for the year ahead is strong with productions of The Jungle Book Second Season, New Adventures of Peter Pan Second Season, Lassie & Friends, 5 & It 3D TV series, Wind in the Willows, Lanfeust First Season, NFL Rush Zone Second Season, The Rising Star and other productions including the Jungle Book Feature Film. These will also give a major boost to our licensing & distribution revenues and the Company is confident of achieving its targeted growth in the years to come," assured Chakravarti.