BETHESDA, Md., July 17, 2013 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT:IGC), a company competing in the rapidly growing materials and infrastructure industry, announced financial results for the Fiscal Year Ended (FYE) March 31, 2013.
Ram Mukunda, CEO of India Globalization Capital, said, "We continue to make important progress across a multiple of fronts as the Company executes on its strategic plan. Our revenue grew by 92% during the period, but more importantly, we have aggressively repositioned the Company by realigning resources to cut our cost structure by approximately 35%. As a result, we expect to experience an improved profit margin as the Company mines the estimated $500 million of reserves currently associated with our four mine sites in Inner Mongolia. In addition, we have vastly improved our balance sheet by reducing total liabilities by approximately $5.2 million."
Mukunda explained, "Our plans for fiscal 2014 are focused on adding to our iron ore reserves and producing incremental revenue and profit from China, India, and Mongolia."
Mukunda continued, "Our focus will include: 1) close and operationalize the recently announced acquisition of a 25% ownership interest in an Inner Mongolian mine, with an estimated $200 million in reserves, which we believe will produce near term incremental revenue and profit, 2) bolster our presence at the border of China and Mongolia and begin shipping ore from Mongolia based on the recently announced purchase agreement, which we anticipate will also add incremental revenue and profitability over the course of this coming year, 3) fully operationalize the Linxi mines and plants, 4) resume our iron ore trading operations in India as mines come back on line after the monsoon season, and 5) continue to make accretive acquisitions that build our asset base."
In FYE 2013, the reported GAAP loss decreased over about 67% from the prior year. The Company reported a GAAP loss of ($2.26 million), and an EPS of ($0.32), compared to a loss of about ($7.75 million) and an EPS of ($2.66) in FYE 2012. The GAAP loss for FYE 2013 includes several non-cash expenses primarily attributable to employee stock options and non-cash interest charges in the amount of approximately $1.2 million.
Total revenue increased 92% to $8.03 million for the FYE March 31, 2013, compared to $4.19 million for FYE 2012.
Selling general and administrative (SG&A) expenses decreased 35% for FYE 2013 to about $3.04 million compared to about $4.7 million for FYE 2012.
In FYE 2013, interest expense was about $0.42 million compared to about $0.98 million in FYE 2012. We have taken strong steps to decrease expense and reduce our overall cost of capital.
The Company reported total liabilities of $4.27 million versus $9.44 million in FYE 2012. The decrease of about $5.2 million in total liabilities was the result of the elimination of contingent cash payments and taxes that were part of the purchase price allocation of Ironman.
As of March 31, 2013, the Company's stockholders' equity was $14.9 million compared to $15.8 million for the period ended March 31, 2012. The Company reported total assets of $19.2 million on March 31, 2013 versus $25.2 million on March 31, 2012. The decrease in total assets was primarily the result of a decrease in intangibles and goodwill, which arose from the adjustment made to the purchase price allocation of Ironman.
About IGC:
Based in Bethesda, Maryland, India Globalization Capital, Inc. (IGC) is a materials and infrastructure company operating in India and China. In India we mainly engage in supplying and trading iron ore and in leasing construction equipment. In China we own and operate iron ore beneficiation plants and iron ore mines, and supply iron ore to steel mills, specifically in Inner Mongolia. We operate a shipping hub at the border of China and Mongolia. For more information about IGC, please visit IGC's Website at www.indiaglobalcap.com. For information about Ironman, please visit www.hfironman.net.
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 fiscal year ended March 31, 2013, and Form 10-Q for fiscal quarters ended September 30, 2012 and December 31, 2012, filed with the Securities and Exchange Commission on December 9, 2011, July 16, 2013, November 14, 2012, and February 13, 2013 respectively.
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (Audited) | ||
| All amounts in USD except share data | ||
| As of | ||
| 31-Mar-13 | 31-Mar-12 | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 1,064,421 | $ 562,948 |
| Accounts receivable, net of allowances | 1,066,650 | 1,641,868 |
| Inventories | 407,060 | 387,481 |
| Dues from related parties | -- | -- |
| Advance taxes | -- | 41,452 |
| Prepaid expenses and other current assets | 1,730,514 | 2,586,514 |
| Total current assets | $ 4,268,645 | $ 5,220,263 |
| Long-Term assets: | ||
| Intangible Assets & Goodwill | 592,274 | 4,803,828 |
| Property, plant and equipment, net | 8,184,230 | 8,491,796 |
| Investments in affiliates | 5,109,057 | 5,109,058 |
| Investments-others | 83,489 | 637,620 |
| Deferred acquisition costs | 207,338 | -- |
| Deferred Income taxes | 341,455 | (14,076) |
| Restricted cash | -- | 12,773 |
| Other non-current assets | 466,105 | 998,816 |
| Total long-term assets | $ 14,983,948 | $ 20,039,815 |
| Total assets | $ 19,252,593 | $ 25,260,078 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Short-term borrowings | $ -- | $ 210,010 |
| Trade payables | 600,702 | 337,145 |
| Accrued expenses | 466,960 | 916,710 |
| Notes payable | -- | 1,800,000 |
| Dues to related parties | -- | 310,681 |
| Deferred tax liabilities | -- | 135,980 |
| Loans - others | 446,694 | 222,389 |
| Other current liabilities | 310,619 | 563,105 |
| Total current liabilities | $ 1,824,975 | $ 4,496,020 |
| Long term liabilities: | ||
| Deferred Income taxes | -- | 713,897 |
| Notes payable | 1,800,000 | -- |
| Other non-current liabilities | 653,388 | 4,233,978 |
| Total long-term liabilities | $2,453,388 | $ 4,947,875 |
| Total liabilities | $ 4,278,363 | 9,443,895 |
| Stockholders' equity: | ||
| Common stock — $.0001 par value; 150,000,000 shares authorized; 6,980,098 issued and outstanding at March 31, 2013 and 6,006,173 issued and outstanding at March 31, 2012 | $ 6,981 | $ 6,007 |
| Additional paid-in capital | 56,147,092 | 54,821,952 |
| Accumulated other comprehensive income | (2,020,764) | (2,542,453) |
| Retained earnings (Deficit) | (39,697,179) | (37,444,832) |
| Total equity attributable to Parent | $ 14,436,130 | $ 14,840,674 |
| Non-controlling interest | $ 538,100 | $ 975,509 |
| Total stockholders' equity | $14,974,230 | $15,816,183 |
| Total liabilities and stockholders' equity | $ 19,252,593 | $ 25,260,078 |
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (Audited) | ||
| All amounts in USD except share data | ||
| Year ended March 31, | ||
| 2013 | 2012 | |
| Revenues | $ 8,030,016 | $ 4,199,551 |
| Cost of revenues (excluding depreciation) | (6,496,891) | (4,817,980) |
| Selling, general and administrative expenses | (3,041,632) | (4,702,492) |
| Depreciation | (673,916) | (996,403) |
| Impairment loss - Goodwill | (301,141) | -- |
| Impairment Loss - Investment | -- | (1,194,257) |
| Operating income (loss) | $(2,483,564) | $(7,511,581) |
| Interest expense | (419,436) | (984,021 |
| Interest income | 30,397 | 267,192 |
| Other income, net | 240,064 | 481,485 |
| Income before income taxes and minority interest attributable to non-controlling interest | $ (2,632,539) | $ (7,746,925) |
| Income taxes benefit/ (expense) | 365,116 | (172,828) |
| Earnings in income from affiliates | -- | 28,463 |
| Net income/(loss) | $ (2,267,423) | $ (7,891,290) |
| Non-controlling interests in earnings of subsidiaries | 15,076 | 139,365 |
| Net income / (loss) attributable to common stockholders | $ (2,252,347) | $ (7,751,925) |
| Earnings/(loss) per share attributable to common stockholders: | ||
| Basic | $ (0.32) | $ (2.66) |
| Diluted | $ (0.32) | $ (2.66) |
| Weighted-average number of shares used in computing earnings per share amounts: | ||
| Basic | 6,966,798 | 2,908,936 |
| Diluted | 6,966,798 | 2,908,936 |