SOURCE: India Globalization Capital, Inc.
August 13, 2010 20:00 ET
India Globalization Capital Reports Fiscal First Quarter Results
BETHESDA, MD--(Marketwire - August 13, 2010) - India Globalization Capital, Inc. (NYSE Amex: IGC), a company competing in the rapidly growing materials and
infrastructure industry in India, announced financial results for its
fiscal first quarter ended June 30, 2010.
Total revenue was $1.12 million for the three months ended June 30, 2010,
as compared to $2.72 million for the three months ended June 30, 2009. The
revenue reported this quarter does not include revenue from one of our
subsidiaries (Sricon), which was deconsolidated, where as it was included
in the 2009 period. Eliminating the Sricon revenue in order to make these
comparable, the Company remained flat on the top line for the three months
ended June 30, 2010 as compared to June 30, 2009.
Cost of revenue for the three months ended June 30, 2010 was $0.98 million
compared to $1.79 million for the three months ended June 30, 2009. As a
percentage of revenue, the cost of revenue increased, primarily because the
Company has additional costs incurred as a result of setting up rock
aggregate quarries and the iron ore business. When our quarries become
fully operational our cost basis will be much improved.
Consolidated GAAP net loss for the three months ended June 30, 2010 was
($0.59) million compared to a consolidated GAAP net loss of ($0.54) million
for the three months ended June 30, 2009. This quarter the charges related
to debt amortization and non-cash interest was about $0.39 million.
As on June 30, 2010 the company had $2.48 million of cash, cash equivalents
and restricted cash and approximately $3.44 million in working capital.
Ram Mukunda, CEO of India Globalization Capital, said, "As expected, our
fiscal first quarter results remained relatively flat when taking in to
account the deconsolidation of Sricon. In September, as soon as the monsoon
season comes to an end, we expect to begin order fulfillment of the nearly
$200 million in iron ore and rock aggregate orders we have received. To
date, we have coordinated with suppliers and have solidified the logistics
for delivery." Mr. Mukunda concluded, "I am also pleased to announce we
have created a new process to improve our ore business, whereby we purchase
ore lumps and crush them into ore fines. This new process will improve our
margins in the ore business going forward. Finally, we continue to work
with our bankers to increase our letter of credit facilities and have been
successful in expanding our rock aggregate quarries."
INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of
--------------------------
June 30, March 31,
2010 2010
(unaudited) (audited)
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 602,257 $ 842,923
Accounts receivable, net of allowances 5,643,771 4,783,327
Inventories 185,006 162,418
Advance taxes 41,452 119,834
Deferred income taxes 561,951 25,345
Dues from related parties 3,016,476 3,114,572
Prepaid expenses and other current assets 840,664 2,054,462
------------ ------------
Total current assets $ 10,891,577 $ 11,102,881
Goodwill 5,953,353 6,146,720
Property, plant and equipment, net 1,598,106 1,748,436
Investments in affiliates 8,443,181 8,443,181
Investments-others 947,420 810,890
Deferred income taxes 4,015,925 4,075,461
Restricted cash 1,875,096 2,169,939
Other non-current assets 1,049,439 872,184
------------ ------------
Total assets $ 34,774,097 $ 35,369,692
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $ 973,441 $ 1,389,041
Trade payables 1,439,284 1,839,405
Accrued expenses 409,225 461,259
Notes payable 4,120,000 4,120,000
Dues to related parties 144,366 149,087
Other current liabilities 363,124 149,942
------------ ------------
Total current liabilities $ 7,449,440 $ 8,108,734
Other non-current liabilities 1,146,352 1,107,498
------------ ------------
Total liabilities $ 8,595,792 $ 9,216,232
------------ ------------
Stockholders' equity:
Common stock -- $.0001 par value; 75,000,000
shares authorized; 13,394,207 issued and
outstanding as of June 30, 2010 and
12,989,207 issued and outstanding as of
March 31, 2010 $ 1,340 $ 1,300
Additional paid-in capital 37,816,125 36,805,724
Accumulated other comprehensive income (2,929,003) (2,578,405)
Retained earnings (Deficit) (10,043,174) (9,452,000)
------------ ------------
Total stockholders' equity $ 24,845,288 $ 24,776,619
Non-controlling interest $ 1,333,017 $ 1,376,841
------------ ------------
Total liabilities and stockholders'
equity $ 34,774,097 $ 35,369,692
============ ============
The accompanying notes should be read in connection with the financial
statements.
INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended June 30,
----------------------------
2010 2009
------------- -------------
Revenues $ 1,128,411 $ 2,723,342
Cost of revenues (983,380) (1,792,329)
------------- -------------
Gross profit 145,031 931,013
Selling, general and administrative
expenses (580,896) (730,814)
Depreciation (96,444) (208,343)
------------- -------------
Operating income (loss) (532,309) (8,144)
Interest expense (213,098) (411,482)
Amortization of debt discount (179,910) -
Interest income 62,887 66,599
Other income, net (150,467) -
------------- -------------
Income before income taxes and minority
interest attributable to non-controlling
interest (1,012,897) (353,027)
Income taxes benefit/ (expense) 421,683 (106,416)
------------- -------------
Net income/(loss) (591,214) (459,443)
Non-controlling interests in earnings of
subsidiaries 40 (76,554)
------------- -------------
Net income / (loss) attributable to common
stockholders $ (591,174) $ (535,997)
============= =============
Earnings per share attributable to common
stockholders:
Basic $ (0.05) $ (0.05)
Diluted $ (0.04) $ (0.05)
Weighted-average number of shares used in
computing earnings per share amounts:
Basic 13,256,427 10,169,991
Diluted 13,803,476 10,366,855
The accompanying notes should be read in connection with the financial
statements.
About IGC
Based in Bethesda, Maryland, India Globalization Capital (IGC) is an
infrastructure and materials company operating in India that builds roads,
bridges and highways, and provides materials to the infrastructure industry
in India and China. The company has three core competencies: Highway and
Heavy Construction, Mining & Quarrying, and Civil Construction and
Engineering. For more information about IGC, please visit the company's web
site at www.indiaglobalcap.com.
Forward-Looking Statements:
Some of the statements contained in this press release that are not
historical facts constitute forward-looking statements under the federal
securities laws. Forward-looking statements can be identified by the use of
the words "may," "will," "should," "could," "expects," "plans,"
"anticipates," "believes," "estimates," "predicts," "intends," "potential,"
"proposed," or "continue" or the negative of those terms. These statements
reflect management's current views and are subject to risks and
uncertainties that could cause actual results to differ materially from
those projected, expressed or implied in these statements. Factors that
could cause actual results to differ, relate to: (i) ability of the parties
to successfully execute on contracts and business plans, (ii) ability to
raise capital and the structure of such capital including the exercise of
warrants, (iii) exchange rate changes between the U.S. dollar and the
Indian Rupee and (iv) weather conditions in India. Readers are cautioned
not to place undue reliance on these forward-looking statements. The
Company undertakes no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events, or
otherwise. Other factors and risks that could cause or contribute to actual
results differing materially from such forward looking statements have been
discussed in greater detail in the Company's Annual Report on Form 10-K for
the year ended March 31, 2010 filed with the Securities and Exchange
Commission.