SOURCE: India Globalization Capital, Inc.

India Globalization Capital, Inc.

August 21, 2012 08:00 ET

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

BETHESDA, MD--(Marketwire - Aug 21, 2012) -  India Globalization Capital, Inc. (NYSE MKT: IGC), a company competing in the rapidly growing materials and infrastructure industry, announced financial results for the Quarter Ended June 30, 2012.

Ram Mukunda, CEO of India Globalization Capital, said," We have decreased our overall expenses considerably in an attempt to position the Company to take advantage of the mining opportunity. Our integration of Ironman is progressing well and we expect to have the plants in China running shortly."

In the quarter ended June 30, 2012, the Company reported a net loss amounting to ($541) thousand and a loss of ($0.01) per share compared to a net loss of ($871) thousand and a loss of ($0.04) per share reported for the quarter ended June 30, 2011.

Total revenue was $1.27 million for the quarter ended June 30, 2012, compared to $1.06 million for the quarter ended June 30, 2011.

Selling general and administrative expenses for the quarter ended June 30, 2012, was $441 thousand compared to $733 thousand reported for the quarter ended June 30, 2011.

As of June 30, 2012 the Company reported a total of $731,134 in cash and cash equivalents and restricted cash.

The Company has access to about INR 140 million ($2.5 million at an exchange rate of 55 INR to 1 USD) in funds that have been deposited by the National Highway Authority of India (NHAI) with the High Court in India against an arbitration award that was won by TBL. The amount deposited pursuant to an order by the judge of the High Court, includes principal of the award plus interest. The Company is allowed to access the amount deposited with the court immediately, but needs to make arrangements to provide a letter of credit to the High Court. The Company is working on arranging the letter of credit, which is routine, and expects to access the full $2.5 million.

As of June 30, 2012, the Company's stockholders' equity was $15.4 million compared to $15.8 million for the period ended March 31, 2012.

The Company reported total assets of $24.8 million as of June 30, 2012 versus $17.5 million as of June 30, 2011. As of June 30, 2012 the Company had $469,748 in working capital.

About IGC:
Based in Bethesda, Maryland, India Globalization Capital (IGC) is a materials and infrastructure company operating in India and China. For more information about IGC, please visit IGC'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," "post", "plans," "anticipates," "believes," "estimates," "predicts," "intends," "potential," "proposed," "confident" or "continue" or the negative of those terms or other variations of these words or comparable terminology. These forward-looking statements are based on the existing beliefs, assumptions, expectations, estimates, projections, and understandings of the management of IGC concerning PRC Ironman with respect to future events at the time these statements are made. 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.

Factors that could cause actual results to differ, relate to the (i) ability of IGC 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, the Chinese RMB and the Indian rupee, (iv) weather conditions in China and India, (v) uncertainties with respect to the People's Republic of China's legal, regulatory and licensing environment, and (vi) ability of the Company to access ports on the coasts of 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 Schedule 14A filed on December 9, 2011 with the Securities and Exchange Commission and Form 10-K for FYE 2012, filed with on July 16, 2012.

 
INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 
   All amounts in USD except share data  
  As of  
  30-Jun-12   31-Mar-12  
  (unaudited)   (audited)  
ASSETS            
Current assets:            
  Cash and cash equivalents $ 719,437   $ 562,948  
  Accounts receivable, net of allowances   1,451,433     1,641,868  
  Inventories   429,706     387,481  
  Dues from related parties   -     -  
  Advance taxes   41,452     41,452  
  Prepaid expenses and other current assets   2,572,255     2,586,514  
    Total current assets $ 5,214,283   $ 5,220,263  
  Goodwill   938,568     965,738  
  Intangible Assets   3,836,334     3,838,090  
  Property, plant and equipment, net   8,370,154     8,491,796  
  Investments in affiliates   5,109,058     5,109,058  
  Investments-others   352,379     637,620  
  Deferred Income taxes   0     (14,076 )
  Restricted cash   11,697     12,773  
  Other non-current assets   994,015     998,816  
    Total assets $ 24,826,488   $ 25,260,078  
LIABILITIES AND STOCKHOLDERS' EQUITY            
Current liabilities:            
  Short-term borrowings $ 200,761   $ 210,010  
  Trade payables   316,480     337,145  
  Accrued expenses   1,176,442     916,710  
  Notes payable   1,800,000     1,800,000  
  Dues to related parties   306,558     310,681  
  Deferred tax liabilities   135,980     135,980  
  Loans - others   222,389     222,389  
  Other current liabilities   585,925     563,105  
    Total current liabilities $ 4,744,535   $ 4,496,020  
  Deferred Income taxes   713,897     713,897  
  Other non-current liabilities   3,982,505     4,233,978  
    Total liabilities $ 9,440,937   $ 9,443,895  
  Stockholders' equity:            
  Common stock -- $.0001 par value; 150,000,000 shares authorized; 60,061,737 issued and outstanding as of June 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   (2,395,437 )   (2,542,453 )
  Retained earnings (Deficit)   (37,973,148 )   (37,444,832 )
Total equity attributable to Parent $ 14,459,374   $ 14,840,674  
  Non-controlling interest $ 926,177   $ 975,509  
Total stockholders' equity   15,385,551     15,816,183  
Total liabilities and stockholders' equity $ 24,826,488   $ 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 June 30,  
  2012     2011  
               
Revenues $ 1,267,680     $ 1,060,247  
  Cost of revenues (excluding depreciation)   (937,444 )     (974,309 )
  Selling, general and administrative expenses   (440,775 )     (733,141 )
  Depreciation   (83,594 )     (51,244 )
Operating income (loss)   (194,133 )     (698,447 )
  Interest expense   (10,557 )     (300,768 )
  Interest income   837       67,348  
  Impairment loss   -       -  
  Equity in (gain)/loss of joint venture   -       36,219  
  Other income, net   (368,611 )     24,694  
Income before income taxes and minority interest attributable to non-controlling interest $ (572,464 )   $ (870,954 )
  Income taxes benefit/ (expense)   31,710       -  
Net income/(loss) $ (540,754 )   $ (870,954 )
  Non-controlling interests in earnings of subsidiaries   12,438       1,751  
Net income/(loss) attributable to common stockholders $ (528,316 )   $ (869,203 )
Earnings/(loss) per share attributable to common stockholders:              
  Basic $ (0.01 )   $ (0.04 )
  Diluted $ (0.01 )   $ (0.04 )
               
Weighted-average number of shares used in computing earnings per share amounts:              
  Basic   39,059,336       20,359,602  
  Diluted   39,059,336       20,359,602  

The accompanying notes should be read in connection with the financial statements.

Contact Information

  • Contact:
    John Selvaraj
    India Globalization Capital Inc.
    301-983-0998