BETHESDA, Md., Nov. 11, 2013 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT:IGC) a company competing in the rapidly growing materials and infrastructure industry in India and China, announced financial results for the quarter ended September 30, 2013.
Ram Mukunda, CEO of India Globalization Capital, said, "We are pleased to report that we have begun to operationalize the first of our three beneficiation plants in Inner Mongolia. We currently have approximately $500 million of estimated iron ore reserves based on current pricing."
IGC's overall strategy is to acquire a significant portfolio of distressed assets in the metals and mining space to take advantage of current market opportunities. We are pursuing several strategic acquisitions intended to dramatically increase our mining reserves in a more diversified portfolio. This is an opportune time for us to build such a portfolio, as this sector is largely undervalued and many smaller mining companies are distressed. By focusing on accretive acquisitions, we believe, the Company can both diversify its holdings and generate strong returns for our shareholders. Our fundamental view to support this strategy is that the value of assets we are aggregating will grow rapidly in the more inflationary environment expected over the next several years given the expanding amount of currency in the global monetary system and a renewed growth in global GDP.
Total revenue was $1,133,585 for the three months ended September 30, 2013 as compared to $1,351,466 for the three months ended September 30, 2012.
In the three months ended September 30, 2013, the Company reported a GAAP net income loss of ($615,187) and a GAAP EPS loss of ($0.09) compared to a GAAP net income loss of ($142,708) and a GAAP EPS loss of ($0.02) for the three months ended September 30, 2012 The increased loss is attributable to three non-cash factors: 1) increased SG&A from the grant of ESOP shares, 2) foreign exchange losses due to the devaluation of the Indian Rupee against the US Dollar and 3) non cash interest payments made on the loans outstanding. Non GAAP EPS after accounting for the non-cash one-time items was ($0.05) per basic and diluted share.
Selling, general and administrative expenses were $474,951 for the three months ended September 30, 2013 as compared to $341,783 for the three months ended September 30, 2012. The increase in SG&A is from the expense associated with the grant of ESOP shares for the fiscal year 2013.
For the period ended September 30, 2013, our cash and cash equivalents along with restricted cash was approximately $726,768.
As of September 30, 2013, the Company's stockholders' equity was approximately $14,465,020 compared with about $14,974,230 for the period ended March 31, 2013. The Company reported total assets of approximately $18,541,672 as of September 30, 2013 versus about $19,252,593 as of March 31, 2013.
The book value of the company as of September 30, 2013 was $2.03 and the tangible book value was $1.95 based on the weighted average number of Basic and Fully Diluted Shares outstanding at the end of the quarter.
Mukunda continued, "We believe that the markets will begin to recognize the value of our assets, as these assets represent a stream of future income. We have an exciting opportunity to build a large valuable resources company both in the coming quarters and longer term in the coming years."
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 Form 10-K for fiscal year ended March 31, 2013, and Form 10-Q for fiscal quarters ended September 30, 2013, December 31, 2012 and September 30, 2012, filed with the Securities and Exchange Commission on July 16, 2013, August 14, 2013, February 13, 2013 and November 14, 2012, respectively.
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| All amounts in USD except share data | ||
| As of | ||
| September 30, 2013 | March 31, 2013 | |
| (unaudited) | (audited) | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $726,768 | $1,064,421 |
| Accounts receivable, net of allowances | 985,743 | 1,066,650 |
| Inventories | 503,034 | 407,060 |
| Prepaid expenses and other current assets | 1,641,821 | 1,730,514 |
| Total current assets | $3,857,366 | $4,268,645 |
| Intangible Assets & Goodwill | 609,896 | 592,274 |
| Property, plant and equipment, net | 7,997,727 | 8,184,230 |
| Investments in affiliates | 5,109,057 | 5,109,057 |
| Investments-others | 47,939 | 83,489 |
| Deferred acquisition costs | 207,337 | 207,338 |
| Deferred Income taxes | 316,233 | 341,455 |
| Other non-current assets | 396,117 | 466,105 |
| Total assets | $18,541,672 | $19,252,593 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Trade payables | 587,021 | 600,702 |
| Accrued expenses | 474,738 | 466,960 |
| Notes payable | 1,800,000 | 1,800,000 |
| Loans – others | 344,695 | 446,694 |
| Other current liabilities | 221,478 | 310,619 |
| Total current liabilities | $3,427,932 | $3,624,975 |
| Other non-current liabilities | 648,720 | 653,388 |
| Total liabilities | $4,076,652 | $4,278,363 |
| Stockholders' equity: | ||
| Common stock — $0.0001 par value; 150,000,000 shares authorized; 6,980,098 issued and outstanding as of March 31, 2013 and 7,481,426 issued and outstanding as of September 30, 2013. | $748 | $698 |
| Additional paid-in capital | 56,677,008 | 56,153,375 |
| Accumulated other comprehensive income | (1,805,975) | (2,020,764) |
| Retained earnings (Deficit) | (40,945,853) | (39,697,179) |
| Total equity attributable to Parent | $13,925,928 | $14,436,130 |
| Non-controlling interest | $539,092 | $538,100 |
| Total stockholders' equity | 14,465,020 | 14,974,230 |
| Total liabilities and stockholders' equity | $18,541,672 | $19,252,593 |
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (Unaudited) | ||||
| All amounts in USD except share data | ||||
| Three months ended September 30, |
Six months ended March 31, 2013 |
|||
| 2013 | 2012 | 2013 | 2012 | |
| Revenues | $1,133,585 | 1,351,466 | $2,257,489 | 2,619,146 |
| Cost of revenues (excluding depreciation) | (943,493) | (1,108,357) | (1,879,732) | (2,045,801) |
| Selling, general and administrative expenses | (474,951) | (341,783) | (774,076) | (782,558) |
| Depreciation | (147,850) | (245,125) | (297,144) | (328,719) |
| Operating income (loss) | (432,709) | (343,799) | (693,463) | (537,932) |
| Interest expense | (68,828) | (15,740) | (180,964) | (26,298) |
| Interest income | 2,253 | 6,333 | 836 | |
| Other income, net | (114,577) | 204,375 | (376,485) | (164,235) |
| Income before income taxes and minority interest attributable to non-controlling interest | $(613,861) | (155,164) | $(1,244,579) | (727,629) |
| Income taxes benefit/ (expense) | (1,507) | (9,735) | (3,103) | 21,975 |
| Net income/(loss) | $(615,368) | (164,899) | $(1,247,682) | (705,654) |
| Non-controlling interests in earnings of subsidiaries | 181 | 22,191 | (992) | 34,629 |
| Net income / (loss) attributable to common stockholders | $(615,187) | (142,708) | $(1,248,674) | (671,025) |
| Earnings/(loss) per share attributable to common stockholders: | ||||
| Basic | $(0.09) | (0.02) | $(0.18) | (0.11) |
| Diluted | $(0.09) | (0.02) | $(0.18) | (0.11) |
| Weighted-average number of shares used in computing earnings per share amounts: | ||||
| Basic | 7,116,180 | 6,006,174 | 7,116,180 | 6,006,174 |
| Diluted | 7,116,180 | 6,006,174 | 7,116,180 | 6,006,174 |
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 September 30, 2013 and Annual Report on Form 10-K for the fiscal year ended March 31, 2013. Quarterly financial results may not be indicative of the financial results for the entire fiscal year.