India Globalization Capital Inc. (IGC), Files 10-Q for the Quarter Ended September 30, 2008
November 17 2008 - 7:00AM
PR Newswire (US)
BETHESDA, Md., Nov. 17 /PRNewswire-FirstCall/ -- India
Globalization Capital, Inc. (AMEX:IGC), (AMEX:IGC.WS),
(AMEX:IGC.U), a U.S. based company developing infrastructure in
India through its majority-owned subsidiaries Sricon Infrastructure
Private Limited (Sricon) and Techni Bharathi Limited (TBL), filed
its second quarter financial results, on Form 10-Q, for fiscal year
2009, which ended on September 30, 2008. For the Quarter Ending
September 30, 2008, IGC reported revenue of approximately $10.5
million versus approximately $6.8 million for the pro forma revenue
reported by the predecessor companies for the same period last
year, a growth of 55%. The Company reported net income, before
one-time non-cash expenses, of approximately $526,000, and basic
and fully diluted Earnings Per Share (EPS), before one-time
expenses, of approximately $0.06 (EPS). Inclusive of one-time
non-cash expenses, the net income and EPS reported are
approximately $72,000 and $0.01, respectively. For the six months
ended September 30, 2008, IGC reported revenue of approximately
$28.4 million; net income, before one-time non-cash expenses, of
approximately $1.8 million; and EPS, before one-time expenses, of
around $0.21 or approximately 6% of revenue. Inclusive of one-time
expenses, IGC reported net income and EPS of approximately $1.4
million and $0.15 respectively. By comparison the predecessor
companies reported revenue, for the six months ended September 30,
2007, of approximately $10.1 million, an increase in revenue of
approximately 180%. Ram Mukunda, chief executive officer of IGC
said: "Our September 2008 quarter was robust. Despite heavy monsoon
rains and the adverse currency impact of the rupee versus the
dollar, we posted a year-over-year growth in revenue of 55% in the
quarter." Mr. Mukunda continued: "However, going forward, due to
illiquidity in the U.S and the Indian credit markets, we are taking
steps to adjust our business model and revising our previous
guidance. The Indian banks funding our expansion have slowed down
the extension of credit. As such, rather than continue to scale up
our operations in the hopes that the capital and credit markets
will improve in the near term, we have decided to conserve cash and
preserve the relative strength of our balance sheet by scaling back
our ambitious growth plans. Assuming no further credit tightening
or strengthening of the dollar, we are lowering our fiscal 2009
revenue guidance to between $35 million to $40 million and our
fiscal 2010 revenue to $45 million to $55 million with net earnings
in the 6% to 8% range. We are currently evaluating a number of
tactical ways to scale back growth in a way that best provides
efficiency and preserves the vast opportunity before us." "We are
convinced that the opportunity we see will not abate, and our goal
is to be in the best possible position to once again accelerate
growth when increased credit becomes available," added Mukunda.
Highlights: -- Revenue for the six months ended September 2008 was
approximately $28.4 million compared to pro forma revenue of $10.2
million for the six months ended September 2007, for the
predecessor companies, an increase of about 180%. -- Operating
Income was around 18.5% of revenue before one-time non-cash
expenses, or 17 % inclusive of one-time non-cash expenses, for the
six months ended September 2008. For the six months ended September
2008 operating income was approximately $4.8 million, inclusive of
non-cash expenses, compared to approximately $1.8 million for the
six months ended September 2007 for the predecessor companies, an
increase of 164%. -- Income before taxes and before one-time
expenses for the six months ended September 2008 was about $4.6
million versus $1.1 million for the six months ended September 2007
for the predecessor companies, an increase of 308%. -- As of
September 30, 2008, IGC reported consolidated total assets of $60.7
million as compared to $67.6 million as of March 31, 2008. Some of
the difference is attributed to the U.S. dollar strengthening
against the Indian Rupee. The dollar rose by almost 15 percent
between March 31, 2008 and September 30, 2008, and most of the
Company's assets are accounted for in Indian Rupees. -- As of
September 30, 2008 IGC had 8,780,107 shares of common stock
outstanding. Conference Call IGC will hold a conference call to
discuss its financial results for the quarter ending September 30,
2008. The call will be held on Monday, November 17, 2008 at 11:00
a.m. EST (8:00 a.m. PST) If you are interested in participating,
please call one of the following numbers ten minutes prior to the
starting time: 1-800-762-8973 (inside the U.S.) or 1-480-629-9041
(outside the U.S.). Ask for the India Globalization Capital Second
Quarter Fiscal Year End 2009 Financial Results Conference Call
(Conference ID # 3944097). An operator will check your name and
organization. You will be asked to wait until the call begins. For
those of you unable to join this earnings call, a playback of this
call will be available via telephone from 2:00 p.m., Monday,
November 17, 2008 until November 24, 2008 at 11:59 p.m., all times
Eastern. The numbers for this replay service are 1-800-406-7325 or
1-303-590-3030 (outside the U.S.). Use Replay Pin Number 3944097,
followed by the pound sign (#). About IGC Based in Bethesda,
Maryland, IGC operates through two infrastructure companies in
India, Sricon Infrastructure Private Limited ("Sricon") and Techni
Bharathi, Limited ("TBL"). IGC owns sixty-three percent of Sricon
and seventy-seven percent of TBL. IGC, through its subsidiaries,
has three core businesses: (1) Highway and other heavy
construction, (2) Mining & quarrying and (3) Civil construction
and engineering of high-temperature plants. Most of IGC's
operations are based in India. The Company has offices in Maryland,
Mauritius, Nagpur, Cochin, Delhi and Bangalore. Copies of IGC's
filings with the SEC containing information about IGC, its Indian
operations and other relevant documents are available at no charge
at the SEC's Internet site (http://www.sec.gov/). For more
information about IGC, please visit the Company's web site at
http://www.indiaglobalcap.com/. Forward-Looking Statements This
press release may contain forward-looking statements. 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, which could cause actual results to differ,
relate to: (i) the ability of the parties to successfully win new
contracts, execute on contracts and business plan, (ii) our ability
to raise additional capital and the structure of such capital
including the exercise of warrants, and (iii) changes in the
exchange rate between the US Dollar and the Indian Rupee. We
undertake 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 Form 10-KSB. (1) The unaudited results of operations are
not necessarily indicative of results of operations that may have
actually occurred had the acquisitions taken place on the dates
noted, or the future financial position or operating results of the
Company. The results and adjustments are based upon available
information and assumptions that the Company believes are
reasonable. DATASOURCE: India Globalization Capital, Inc. CONTACT:
Dhruva Kumar of India Globalization Capital, Inc., +1-301-983-0998,
, Investors, Dave Gentry of RedChip Companies, Inc.,
1-800-733-2447, Ext. 104, Web Site: http://www.indiaglobalcap.com/
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