Eros International (EROS.L) in its trading update for the financial year ending 31 March 2009, said that it currently expects the full year turnover and profits to be below market expectations, when translated into US Dollars, although still in excess of the results for the previous financial year.
In light of the terrorist attacks in Mumbai earlier in this financial year and the general economic downturn, the company has made a strategic decision to defer the release of four films that were due to be released before the end of March 2009 until after May 2009 in order to maximise the potential receipts from those film projects.
Further, Eros expects its own business to continue to grow and will seek to scale the business based on the opportunities and expected returns.
Eros stated that the continued depreciation of the Indian Rupee against the US Dollar has materially reduced the value of its revenues when translated into the reporting currency of US Dollars, especially since more than half of the group turnover is generated by its Indian business.
The company also noted that its business model is the operation of a global content and distribution business with income and costs in mainly Indian Rupees, GBP, Euros and US Dollars. The volume and nature of the transactions mean that currency hedging is impractical. Consequently currency translation losses, which are non-cash items, remain an inherent risk of the business.
The company said that its business, which is underpinned by a valuable content library of over 1,900 films, continues to perform broadly as anticipated.
Eros pointed that cash generation from operations has continued to be strong in the second half of the current financial year and its balance sheet remains robust.
For comments and feedback contact: editorial@rttnews.com
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.