India Globalization Capital Announces Financial Results for Quarter Ended June 30, 2014

By GlobeNewswire,  August 15, 2014, 08:00:00 AM EDT


Cash and equivalents nearly tripled from prior quarter to about $2.9 M



Sets up platform for expanding India based business and entry into the Legal Cannabis industries

BETHESDA, Md., Aug. 15, 2014 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSEMKT:IGC) announced financial results for the quarter ended June 30, 2014.

Ram Mukunda, CEO of IGC, said, "During the past year we positioned the Company for growth in two key markets: Indian infrastructure and legal cannabis. This quarter, we acquired Golden Gate in Hong Kong (now IGC International Limited) and we are in the process of consolidating our trading business to create a web based trading platform that can be used for trading iron ore, electronics and other materials. We also entered into a partnership to create vertical indoor farms that can serve as ready infrastructure for growing cannabis, once legal. We expect much stronger revenue in this fiscal year over the last fiscal year from our India based heavy equipment rental business and our Hong Kong based trading business. Towards the end this calendar year we expect to generate revenue and margins from our investments in vertical farms. We hope to have three revenue and earnings drivers by the end of this calendar year making for an exciting fiscal 2015.

Also, in the first quarter we took actions to improve our balance sheet, which will allow us to continue to execute on our plans. We believe that we have enough cash on our balance sheet to launch these initiatives."

For the period ended June 30, 2014, our cash and cash equivalents along with restricted cash nearly tripled from the prior quarter to approximately $2,952,739. As of June 30, 2014, the Company's stockholders' equity was approximately $16,245,633 compared with about $13,627,184 for the period ended March 31, 2014.

IGC's fiscal year ends on March 31, 2015. Therefore the quarter being reported is the first quarter of fiscal year ending on March 31, 2015 ("Q1 2015"). Total revenue was $763,864 for Q1 2015 as compared to $1,123,904 for Q1 2014. The revenue reported for both quarters was primarily from trading and the India based heavy equipment rental business. While the revenue reported in fiscal Q1 2015 was lower than that reported in Q1 2014, we expect the total revenue in fiscal 2015 to be substantially stronger than that reported in fiscal 2014.

Selling, general and administrative expenses were $1,077,686 for Q1 2015 and $299,125 for Q1 2014. In general our costs have come down as we have shed costs associated with non-performing businesses. The SG&A for Q1 2015 includes $635,877 worth of non-cash items as well as one-time acquisition related cash expenses.

In Q1 2015, the Company reported a GAAP net income loss of ($ 1,201,429) and a GAAP EPS of ($0.12) compared to a GAAP net income loss of ($633,487) and a GAAP EPS loss of ($0.09) for Q1 2014. The larger loss in the Q1 2015 is attributable largely to higher G&A. We expect to see increased revenue in the quarters ahead and improved earnings by the end of this year.

Mukunda continued, "We are positioning the company in areas where we have a strategic advantage and can leverage our international presence. These strategies include creating a portfolio of marijuana and hemp based patents, partnering to create and file for FDA approval of cannabinoid-based drugs for compassionate use, and creating an R&D lab in a country where we can legally grow the plants. Our goal is to be a leader in bringing in a high degree of standardization and quality control throughout the entire supply chain."

About IGC:

Based in Bethesda, Maryland, India Globalization Capital, Inc. has articulated a strategy to become a company with diverse operating businesses including medical marijuana, specialty pharmaceuticals and solar energy. We are currently engaged in trading, vertical farming and rental of heavy equipment in India, China and the United States.

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, iron ore availability in its existing business 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, 2014 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-14 31-March-14
  (Unaudited) (Audited)
ASSETS    
Current assets:    
Cash and cash equivalents $ 2,952,739 $ 1,026,565
Accounts receivable, net of allowances 1,108,072 566,252
Inventories 758,391 611,702
Prepaid expenses and other current assets 1,605,802 1,553,936
Total current assets $ 6,425,004 $ 3,758,455
Goodwill 982,782 --
Intangible Assets 470,191 468,091
Property, plant and equipment, net 7,809,298 7,586,844
Investments in affiliates 5,109,058 5,109,058
Investments-others 31,619 31,650
Deferred Income taxes 322,451 321,676
Other non-current assets 459,827 458,578
Total long-term assets $ 15,185,226 $ 13,975,897
Total assets $ 21,610,230 $ 17,734,352
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Short -term borrowings 369,674 --
Trade payables 297,147 133,365
Accrued expenses 181,388 418,480
Loans - others 1,058,929 424,845
Other current liabilities 49,843 53,987
Total current liabilities $ 1,956,981 $ 1,030,677
Notes payable 1,800,000 1,800,000
Other non-current liabilities 1,030,813 758,379
  $ 2,830,813 $ 2,558,379
Total liabilities $ 4,787,794 $ 3,589,056
Stockholders' equity:    
Common stock — $.0001 par value; 150,000,000 shares authorized; 9,373,569 issued and outstanding as of March 31, 2014 and 12,491,010 issued and outstanding as of June 30, 2014. $ 1,249 $ 937
Additional paid-in capital 62,159,404 58,362,834
Accumulated other comprehensive income (1,993,819) (2,016,815)
Retained earnings (Deficit) (43,921,201) (42,719,772)
Total equity attributable to Parent $ 16,245,633 $ 13,627,184
Non-controlling interest 576,803 518,112
Total stockholders' equity $ 16,822,436 $ 14,145,296
Total liabilities and stockholders' equity $ 21,610,230 $ 17,734,352
 
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, 2014 and Annual Report on Form 10-K for the fiscal year ended March 31, 2014. 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,
  2014 2013
     
Revenues $ 763,864 $ 1,123,904
Cost of revenues (excluding depreciation) (687,288) (936,239)
Selling, general and administrative expenses (1,077,686) (299,125)
Depreciation (148,889) (149,294)
Operating (loss) $ (1,149,999) $ (260,754)
Interest expense (61,170) (112,136)
Interest income 2,338 4,080
Other income, net (887) (261,908)
(Loss) before income taxes and minority interest attributable to non-controlling interest $ (1,209,718) $ (630,718)
Income taxes benefit/ (expense) -- (1,596)
Net income/(loss) $ (1,209,718) $ (632,314)
Non-controlling interests in earnings of subsidiaries 8,289 (1,173)
Net income / (loss) attributable to common stockholders $ (1,201,429) $ (633,487)
Earnings/(loss) per share attributable to common stockholders:    
Basic $ (0.12) $ (0.09)
Diluted $ (0.12) $ (0.09)
Weighted-average number of shares used in computing earnings per share amounts:    
Basic 10,174,358 7,003,023
Diluted 10,174,358 7,003,023
 
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, 2014 and Annual Report on Form 10-K for the fiscal year ended March 31, 2014. Quarterly financial results may not be indicative of the financial results for the entire fiscal year.
CONTACT: Investors Contact Information
         Claudia Grimaldi
         301-983-0998

Source: India Globalization Capital

This article appears in: News Headlines

Referenced Stocks: IGC


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