DQ Entertainment reports cut in profits

DQ Entertainment, the AIM-listed production and distribution group, plunged after reporting a big drop in profits in the first half.

Profit before tax came in at $1.79m in the six months to the end of September, down 34% from the $2.7m it reported the year before.

The firm said the fall was on account of a foreign exchange loss, as well as the impact of Rupee-Dollar exchange rates.

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Shares dropped almost 13% on the news.

Revenue in local currency - the Indian rupee - increased by 5%, however as the financials are presented in US dollars, the firm was hit by a 20% depreciation of rupee against the dollar since September 2011.

This meant revenues dropped to $17.9m from $19.9m the year before.

Chairman Tapaas Chakravarti said the company's production pipeline was steady.

"We remain confident that the global entertainment industry has excellent long term growth prospects, while our business remains well placed for projected growth in the current year," he said.