IGC Announces Financial Results for Quarter Ended June 30, 2016

Strengthens International Infrastructure & Real Estate Management Unit

Bethesda, Maryland, UNITED STATES


BETHESDA, Md., Aug. 17, 2016 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT:IGC) announces financial results for the quarter ended June 30, 2016. Total revenue was $288,493 for the three months ended June 30, 2016, as compared to $1,858,809 for the three months ended June 30, 2015.  The decrease in revenue is attributable to the corporate mandate to reduce volume in the electronic trading business.

Selling, general and administrative expenses were $307,772 for the quarter ended June 30, 2016 as compared to $305,403 for the quarter ended June 30, 2015. Most of these expenses were incurred as a result of public-company costs.

The Company reported a consolidated GAAP net income loss of $383,566 and a GAAP EPS loss of $0.02 compared to a GAAP net income loss of $382,699 and a GAAP EPS loss of $0.03 for the three months ended June 30, 2015.

For the quarter ended June 30, 2016, our non-GAAP cash burn was approximately $254,654 after adjusting for $97,672 of depreciation and $31,240 of non-cash interest.

At the end of June 30, 2016, our cash and cash equivalents along with restricted cash was $1,325,550.

“We are pleased to move forward into the new fiscal year with a strong foundation for growth driven by our international infrastructure and real estate management division. Our recent acquisition of Cabaran Ultima will help us leverage significant management expertise as we look to develop high-end luxury complexes as further exemplified by our 10% stake in the $262 MM Genting Highlands project which was announced subsequent to the current quarter,” stated Ram Mukunda, CEO.

About IGC

In the United States, we develop phytocannabinoid-based therapies. We have several patent filings for the indications of Pain, Medical Refractory Epilepsy and Cachexia using phytocannabinoids. In addition, internationally we engage in leasing, trading, developing and managing infrastructure, and real estate projects. We are based in Bethesda, Maryland.

Our website: www.igcinc.us. Twitter @IGCIR Facebook.com/IGCIR/

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," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "potential," "proposed" 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 IGC's business and acquisition and diversification strategy, competitive environment, infrastructure demands, and governmental, regulatory, political, economic, legal and social conditions in, among other places, China and India. Except as required by federal securities laws, IGC undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information or 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 Form 10-K for fiscal year ended March 31, 2016, and in subsequent reports filed with the U.S. Securities and Exchange Commission.

FINANCIAL STATEMENTS TO FOLLOW

INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 
  All amounts in USD except share data 
  As of 
  30-June - 16  31-March - 16 
  (unaudited)  (audited) 
ASSETS      
Current assets:      
Cash and cash equivalents $1,325,550  $1,490,693 
Accounts receivable, net of allowances  591,575   962,658 
Inventories  58,647   162,091 
Prepaid expenses and other current assets  1,529,781   1,226,507 
Total current assets $3,505,553  $3,841,949 
Goodwill  1,180,951   1,180,951 
Intangible Assets  113,321   113,321 
Property, plant and equipment, net  7,038,529   7,074,437 
Investments in affiliates  573,411   609,148 
Investments-others  5,229,910   5,175,392 
Deferred Income taxes  356,334   356,684 
Other non-current assets  497,632   507,300 
Total long-term assets $14,990,088  $15,017,233 
Total assets $18,495,641  $18,859,182 
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:        
Short -term borrowings  12,591   27,762 
Trade payables  259,204   330,631 
Accrued expenses  230,132   300,111 
Advance from customers  397,516   - 
Loans - others  133,333   189,680 
Notes payable  1,800,000   1,800,000 
Other current liabilities  565,181   550,877 
Total current liabilities $3,397,957  $3,199,061 
Long -term borrowings  596,273   801,467 
Other non-current liabilities  909,892   910,583 
Total non-current liabilities $1,506,165  $1,712,050 
Total liabilities $4,904,122  $4,911,111 
Stockholders' equity:        
Common stock — $.0001 par value; 150,000,000 shares authorized; 23,265,531 issued and outstanding as of March 31, 2016 and 23,405,198   issued and outstanding as of June 30, 2016. $2,340  $2,327 
Additional paid-in capital  65,942,286   65,885,243 
Accumulated other comprehensive income  (2,316,544)  (2,269,357)
Retained earnings (Deficit)  (50,527,357)  (50,142,199)
Total equity attributable to Parent $13,100,725  $13,476,014 
 Non-controlling interest $490,794  $472,057 
Total stockholders' equity $13,591,519  $13,948,071 
Total liabilities and stockholders' equity $18,495,641  $18,859,182 


These interim financial statements should be read in conjunction with the financial statements and notes included in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 and Annual Report on Form 10-K for the fiscal year ended March 31, 2016. Quarterly financial results may not be indicative of the financial results for the entire fiscal year.

INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
  All amounts in USD except
share data
 
  Three months ended June
30,
 
 2016  2015 
       
Revenues $288,493  $1,858,809 
Cost of revenues (excluding depreciation)  (201,854)  (1,654,769)
Selling, general and administrative expenses  (307,772)  (305,403)
Depreciation  (97,672)  (155,974)
Operating income (loss) $(318,805) $(257,337)
Interest expense  (43,278)  (61,914)
Interest income  -   694 
Other income, net  1,755   (35,057)
Income before income taxes and minority
interest attributable to non-controlling interest
 $(360,328) $(353,614)
Income taxes benefit/ (expense)  -   - 
Net income/(loss) $(360,328) $(353,614)
Non-controlling interests in earnings of subsidiaries  23,238   29,085 
Net income / (loss) attributable to common stockholders $(383,566) $(382,699)
Earnings/(loss) per share attributable to common stockholders:        
Basic $(0.02) $(0.03)
Diluted $(0.02) $(0.03)
Weighted-average number of shares used in computing earnings per share amounts:        
Basic  23,312,056   14,832,065 
Diluted  23,312,056   14,832,065 

These interim financial statements should be read in conjunction with the financial statements and notes included in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 and Annual Report on Form 10-K for the fiscal year ended March 31, 2016. Quarterly financial results may not be indicative of the financial results for the entire fiscal year.

 


        

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