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India Globalization Capital Announces Financial Results for the Quarter Ended September 30, 2012

Thursday, November 15, 2012 8:01 AM


BETHESDA, Md., Nov. 15, 2012 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT:IGC) (NYSE Amex:IGC), a company competing in the rapidly growing materials and infrastructure industry in India and China, announced financial results for the Quarter Ended September 30, 2012.

Total revenue for IGC was approximately $1.35 million for the three months ended September 30, 2012, compared to approximately $0.91 million for the three months ended September 30, 2011. The revenue in the quarter is mostly from trading iron ore and other materials.

In the three months ended September 30, 2012, the Company reported a GAAP net income loss amounting to approximately $165 thousand and a GAAP EPS of $0.00 compared to a consolidated net loss of about $798 thousand and an EPS loss of ($0.04) for the three months ended September 30, 2011.

Selling, general and administrative expenses were approximately $342 thousand for the three months ended September 30, 2012 as compared to approximately $652 thousand for the three months ended September 30, 2011. The Company, as previously disclosed, has expended considerable resources aligning G&A to the mining and trading business. The significant decrease in G&A reflects a reduction in overheads associated with unprofitable businesses.

For the quarter ended September 30, 2012, our non-GAAP cash burn was approximately $109 thousand after adjusting for non-cash items and write backs. This amount does not take into account approximately $55 thousand of income from investments that do not flow through the P&L. Taking this into account the non-GAAP cash burn for the quarter was approximately $54 thousand.

For the period ended September 30, 2012, our cash and cash equivalents along with restricted cash was approximately $624 thousand.

As of September 30, 2012, the Company's stockholders' equity was approximately $15.2 million compared to about $15.8 million for the period ended March 31, 2012.

The Company reported total assets of approximately $24.2 million as of September 30, 2012 versus about $25.3 million as of March 30, 2012. As of September 30, 2012 the Company had $967,769 in working capital.

As previously disclosed, the Company has access to about INR 140 million ($2.5 million at an exchange rate of 55 INR to 1 USD) in funds deposited by the National Highway Authority of India (NHAI) with the high court in Delhi against an arbitration award that was won by TBL. The Company is allowed to access the amount deposited with the court immediately, but is required to make arrangements for a letter of credit to the high Court. The court is expected to meet on December 19, 2012 for a final decision on the claim. It is the Company expectation that the amount, subject to some adjustments relative to the rate of interest, will be released to the Company. The Company therefore, has decided not to issue a letter of credit preferring instead to await the outcome of the ruling.

Ram Mukunda, CEO of India Globalization Capital, said, "This quarter reflects our efforts to realign resources and the extinguishment of expensive debt. We have also brought our costs in line with our operational focus going forward. Finally, we have completed the integration of Ironman."

Mukunda added, "In the near future, after the once in a decade political process of leadership transition in China is completed, we will focus on opening the first of our mines. We are now beginning to fill orders from our Chinese customers through our trading operations. This lower margin business will transition to higher margins as we supply ore from our beneficiation plants. As reported in Bloomberg, in September, China approved $158 billion for infrastructure as part of a stimulus plan that is expected to boost the demand for commodities. Ore prices have started to recover from their lows of $86 in September to around $110. We are satisfied with the position we are in with about $500 million of iron ore deposits, four mine sites, and three beneficiation plants. We expect to be opportunistic in adding to these reserves and production capacity through strategic acquisitions."

About IGC:

Based in Bethesda, Maryland, India Globalization Capital (IGC) is a materials and infrastructure company operating in India and China. We currently supply Iron ore to Steel Companies operating in China. For more information about IGC, please visit IGC's Web site at www.indiaglobalcap.com.

The India Globalization Capital logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=14147

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," "post", "plans," "anticipates," "believes," "estimates," "predicts," "intends," "potential," "proposed," "confident" or "continue" or the negative of those terms. These statements are not a guarantee of future developments and are subject to risks, uncertainties and other factors, some of which are beyond IGC's control and are difficult to predict. Consequently, actual results may differ materially from information contained in the forward-looking statements as a result of future changes or developments in our business, our competitive environment, infrastructure demands, Iron ore availability and governmental, regulatory, political, economic, legal and social conditions in China and India.

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 IGC's Schedule 14A, Form 10-K for FYE 2012, and Form 10-Q for the quarter ended September 30, 2012 filed with the Securities and Exchange Commission on December 9, 2011, on July 16, 2012, and on November 14, 2012, respectively.

 
 
INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
     
  All amounts in USD except share data
   As of
   30-Sep-12 31-Mar-12
   (unaudited) (audited)
ASSETS    
Current assets:    
Cash and cash equivalents $ 611,297 $ 562,948
Accounts receivable, net of allowances 1,574,148 1,641,868
Inventories 429,348 387,481
Advance taxes 41,452 41,452
Prepaid expenses and other current assets 2,429,779 2,586,514
Total current assets $ 5,086,024 $ 5,220,263
Property, plant and equipment, net 8,169,652 8,491,796
Investments in affiliates 5,109,058 5,109,058
Intangible Assets and Goodwill 4,495,807 4,803,828
Investments-others 311,910 637,620
Other non-current assets 1,047,359 997,513
Total assets $ 24,219,810 $ 25,260,078
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities:      
Short-term borrowings $ 177,300 $ 210,010
Trade payables 367,255 337,145
Accrued expenses 936,940 916,710
Notes payable 1,800,000 1,800,000
Dues to related parties -- 310,681
Deferred tax liabilities 135,980 135,980
Loans – others 222,389 222,389
Other current liabilities 478,391 563,105
Total current liabilities $ 4,118,255 $ 4,496,020
Deferred Income taxes 713,897 713,897
Other non-current liabilities 4,210,388 4,233,978
Total liabilities $ 9,042,540 $ 9,443,895
Stockholders' equity:      
Common stock — $.0001 par value; 150,000,000 shares authorized; 60,061,737 issued    
and outstanding as of Sept 30, 2012 and 60,061,737 issued and outstanding as of    
March 31, 2012  $ 6,007  $ 6,007
Additional paid-in capital 54,821,952 54,821,952
Accumulated other comprehensive income (2,467,252) (2,542,453)
Retained earnings (Deficit) (38,115,857) (37,444,832)
  Total equity attributable to Parent $ 14,244,850 $ 14,840,674
   Non-controlling interest $ 932,420 $ 975,509
  Total stockholders' equity 15,177,270 15,816,183
Total liabilities and stockholders' equity $ 24,219,810 $ 25,260,078
     
The accompanying notes should be read in connection with the financial statements.
 
 
INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
All amounts in USD except share data
         
   Three months ended September 30, Six months ended September 30,
  2012 2011 2012 2011
         
Revenues $ 1,351,466 $ 912,121 $ 2,619,146 $ 1,972,368
Cost of revenues (excluding depreciation)  (1,108,357) (903,523) (2,045,801) (1,877,832)
Selling, general and administrative expenses (341,783) (652,375) (782,558) (1,385,515)
Depreciation (245,125) (75,621) (328,719) (126,865)
Operating income (loss) (343,799) (719,398) (537,932) (1,417,844)
Interest expense (15,740) (148,965) (26,298) (449,733)
Interest income   59,085 836 126,433
Impairment loss -- -- -- --
Equity in (gain)/loss of joint venture -- 25,832 -- 62,051
Other income, net 204,375 (14,770) (164,235) 9,924
Income before income taxes and minority interest attributable to non-controlling interest $ (155,164) $ (798,216) $ (727,629) $ (1,669,169)
Income taxes benefit/ (expense) (9,735) -- 21,975 --
Net income/(loss) $ (164,899) $ (798,216) $ (705,654) $ (1,669,169)
Non-controlling interests in earnings of subsidiaries 22,191 8,963 34,629 10,714
Net income / (loss) attributable to common stockholders $ (142,708) $ (789,253) $ (671,025) $ (1,658,455)
Earnings/(loss) per share attributable to common stockholders:        
Basic $ (0.00) $ (0.04) $ (0.01) $ (0.08)
Diluted $ (0.00) $ (0.04) $ (0.01) $ (0.08)
Weighted-average number of shares used in computing earnings per share amounts:        
Basic 60,061,737 20,960,433 60,061,737 20,699,660
Diluted 60,061,737 20,960,433 60,061,737 20,699,660
         
The accompanying notes should be read in connection with the financial statements.
CONTACT: John Selvaraj
         India Globalization Capital Inc.
         301-983-0998

IGC

(Source: PrimeZone )
(Source: Quotemedia)

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