SOURCE: India Globalization Capital, Inc.

India Globalization Capital, Inc.

November 12, 2009 06:00 ET

India Globalization Capital Announces Financial Results for Second Quarter Fiscal Year 2010

Quarter Over Quarter Revenue Grows Almost 100%

BETHESDA, MD--(Marketwire - November 12, 2009) - India Globalization Capital, Inc. (NYSE Amex: IGC), a company competing in the rapidly growing materials and infrastructure industry in India, announced financial results for the second quarter of fiscal year 2010, ended September 30, 2009. The company will hold a conference call on Thursday, November 12, 2009 at 10:00 a.m. EST (7:00 a.m. Pacific) to discuss these results. Details on accessing the call follow.

"We have spent the last year repositioning ourselves as a materials and construction company," said Ram Mukunda, CEO of Indian Globalization Capital. "This quarter we've seen the beginning of a meaningful turn around in our top line. Our plans for the next 12 months are to focus on: production from two to five rock quarries; leveraging our shipping hub for the sale of iron ore and other material to China and other countries; expanding the number of recurring contracts for infrastructure build out and, aggressively pursuing the collection of claims."

Three Months Ended September 30, 2009

Total revenue was $5.4 million for the three months ended September 30, 2009, compared to $10.5 million for the three months ended September 30, 2008. Revenue for the quarter ended June 30, 2009 was $2.7 million representing quarter over quarter revenue growth of nearly 100%.

"For the first time in four quarters we are once again growing our top line. The initiatives that we continue to implement include recurring contracts in construction, mining and quarrying. These initiatives and realignment from a construction company to a materials and construction company have begun to bear fruit. We are happy with the progress and expect top line growth to continue with earnings to follow," said Mukunda.

In the three-month period ended September 30, 2009, operating loss was $224,000, compared to operating income of $1.2 million for the three-month period ended September 30, 2008.

Selling, General and Administrative expenses consisted primarily of employee-related expenses, professional fees, other corporate expenses and allocated overhead. Selling, general and administrative expenses were $666,000 for the three-month period ended September 30, 2009 compared to $1.1 million for the three-month period ended September 30, 2008.

For the three months ended September 30, 2009 the company reported a GAAP net loss of $580,000 compared to net income of $72,000 for the three months ended September 30, 2008. The company reported a GAAP net loss of $0.05 per basic share versus a GAAP net profit of $0.01 per basic share for the period ended September 2008. The losses reported in the September 2009 quarter include around $480 thousand of non-cash expenses.

Six Months Ended September 30, 2009

Total revenue was $8.1 million for the six months ended September 30, 2009, as compared to $28.4 million for the six months ended September 30, 2008. As the global financial constraints unfolded the company took steps to downsize its operations, as a result it eliminated much of its construction backlog and reduced its work force reducing overall revenue. However, on a quarter over quarter basis the company posted a near 100% increase in its revenue, demonstrating that it has started to ramp up its operations again.

In the six-month period ended September 30, 2009, operating loss was $232,000, compared to operating income of $4.8 million for the six month period ended September 30, 2008.

Selling, General and Administrative expenses consist primarily of employee-related expenses, professional fees, other corporate expenses and allocated overhead. Selling, general and administrative expenses were $1.4 million for the six-month period ended September 30, 2009 compared to $2.1 million for the six-month period ended September 30, 2008.

Net interest expense decreased by $35,000 compared to the six-month period ended September 30, 2008. For the six months ended September 30, 2009. The company booked a non-cash charge of approximately $482,000 for loan amortization expense.

Net loss for the six months ended September 30, 2009 was $1.1 million compared to net income of $1.4 million for the six months ended September 30, 2008. The company reported a GAAP loss of $0.09 per basic share for the September 30, 2009 quarter compared to a GAAP profit of $0.15 per basic share for the six months ended September 30, 2008. The losses reported in the six months ended September 30, 2009 include around $970,000 of non-cash expenses.

As of September 30, 2009, the company's consolidated total assets were approximately $53 million including cash, cash equivalents, and restricted cash used as deposits of around $4.3 million. The company reported short and long term borrowings of about $ 6.2 million.

Conference Call and Webcast

IGC will hold a conference call Thursday, November 12, 2009 at 10:00 a.m. EST (7:00 a.m. Pacific) to discuss financial results for the second quarter of fiscal year 2010, ended September 30, 2009.

To participate in the call please dial 1-877-941-1431 (from within the U.S.), or 480-629-9668, approximately 10 minutes prior to the scheduled start time. Interested parties can also listen via a live webcast accessible from the company's website: http://www.indiaglobalcap.com.

A recording of the call will be available for two weeks from 1:00 p.m. November 12, 2009, EST until 11:59 p.m. EST on November 26, 2009. To access the recording, dial 1-800-406-7325 (from within the U.S.), or 303-590-3030; the passcode for the recording is 4183722. The recording will also be available via the company's website at http://www.indiaglobalcap.com for one year.

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

Statements contained herein that relate to the Company's future performance, including statements with respect to forecasted revenues, margins, cash generation and capital expenditures are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. 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, and (iii) exchange rate changes between the U.S. dollar and the Indian Rupee. 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 definitive proxy statement and supplement filed with the SEC and incorporated by reference into the Form S-3 and set forth in the Company's Annual Report on Form 10-K for the year ended March 31, 2009 filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


                    India Globalization Capital, Inc.
                        CONSOLIDATED BALANCE SHEETS


                                              September 30,    March 31,
                                                  2009           2009
                                               (unaudited)     (audited)
                                              -------------  -------------
ASSETS
Current Assets:
Cash and cash equivalents                     $   2,434,656  $   2,129,365
Accounts Receivable                               9,455,722      9,307,088
Unbilled Receivables                              2,547,743      2,759,632
Inventories                                       2,309,029      2,121,837
Prepaid taxes                                        88,683         88,683
Restricted cash                                     273,643             --
Prepaid expenses and other current assets         2,795,900      2,801,148
Due from related parties                            294,919        290,831
                                              =============  =============
Total Current Assets                             20,200,295     19,498,584
                                              =============  =============
Property and equipment, net                       6,749,647      6,601,394
Accounts Receivable - Long Term                   2,929,279      2,769,196
Goodwill                                         17,483,501     17,483,501
Investment                                           74,833         70,743
Deposits towards acquisitions                       261,479        261,479
Restricted cash, non-current                      1,635,102      1,430,137
Deferred tax assets, net of valuation
 allowance                                          852,673        898,792
Other Assets                                      3,007,476      2,818,687
                                              =============  =============
Total Assets                                  $  53,194,285  $  51,832,513
                                              =============  =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Short-term borrowings and current
 portion of long-term debt                    $   3,418,063  $   3,422,239
Trade payables                                      694,534        462,354
Advance from Customers                              217,970        206,058
Accrued expenses                                    640,326        555,741
Taxes payable                                        76,569         76,569
Notes Payable to Oliveira Capital, LLC            2,000,000      1,517,328
Due to related parties                            1,285,046      1,214,685
Other current liabilities                         1,291,048      1,991,371
                                              =============  =============
Total current liabilities                     $   9,623,556  $   9,446,345
                                              =============  =============
Long-term debt, net of current portion              812,191      1,497,458
Deferred taxes on income                            653,588        590,159
Other liabilities                                 2,326,496      2,440,676
Total Liabilities                             $  13,415,831  $  13,974,638
                                              =============  =============
Minority Interest                                14,327,631     14,262,606

COMMITMENTS AND CONTINGENCY
STOCKHOLDERS' EQUITY
Common stock -- $.0001 par value;
 75,000,000 shares authorized; 11,783,991
 issued and outstanding at September 30, 2009
 and 10,091,171 issued and outstanding at
 March 31, 2009                                       1,179          1,009
Additional paid-in capital                       34,968,817     33,186,530
Retained Earnings (Deficit)                      (5,778,878)    (4,662,689)
Accumulated other comprehensive (loss) income    (3,740,295)    (4,929,581)
                                              =============  =============
Total stockholders' equity                       25,450,823     23,595,269
                                              =============  =============
Total liabilities and stockholders' equity    $  53,194,285  $  51,832,513
                                              =============  =============




                    India Globalization Capital, Inc.
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                                (unaudited)


                                              Three Months   Three Months
                                                  Ended          Ended
                                                30-Sep-09      30-Sep-08
                                              -------------  -------------
Revenues:                                     $   5,362,138  $  10,498,870
Cost of revenues:                                (4,710,718)    (7,890,252)
  Gross Profit                                      651,420      2,608,618
  Selling, General and Administrative              (665,720)    (1,141,751)
  Depreciation                                     (209,479)      (235,725)
                                              -------------  -------------
    Total operating expenses                       (875,199)    (1,377,476)
Operating income (loss)                            (223,779)     1,231,142
Other income (expense):
  Interest and miscellaneous income                  38,994         57,520
  Interest expense                                 (355,586)      (327,775)
    Total other income (expense)                   (316,592)      (270,255)
Income (loss) before provision for
 income taxes                                      (540,371)       960,887
                                              -------------  -------------
(Provision) benefit for income taxes                (51,350)      (273,515)
Income (loss) after provision for
 income tax                                        (591,721)       687,372
Minority interest                                    11,529       (614,948)
Net income (loss)                             $    (580,192) $      72,425
                                              =============  =============
Weighted average number of shares
 outstanding:
  Basic                                          11,783,991      8,780,107
  Diluted                                        12,291,208      8,780,107
Net income per share:
  Basic                                       $       (0.05) $        0.01
  Diluted                                     $       (0.05) $        0.01
                                              =============  =============

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