1st Quarter Results

SUBEX LTD

Registered office: Adarsh Tech Park, Outer Ring Road, Devarabisanahalli, Bangalore - 560 037

Unaudited Financial Results for the quarter ended June 30, 2010 - CONSOLIDATED

(Rs. In Millions)

Quarter Ended

For the year Ended

30th June

31st March

2010

2009

2010

Unaudited

Unaudited

Audited

Sales - Product & Product related

1,014.37

943.53

 3,829.43

 - Services

173.11

232.56

 801.35

Net Sales

1,187.48

1,176.09

 4,630.78

Other Operating Income

38.76

51.45

 117.03

Income from Operations

1,226.24

1,227.54

 4,747.81

Expenditure

- Cost of Hardware, Software & Services

20.69

31.42

 118.06

- Personnel Cost

682.05

816.74

 2,968.34

- Other Expenditure

197.69

178.61

 714.18

- Total

900.43

1,026.77

 3,800.58

Profit / (Loss) before Interest, Taxes, Depreciation & amortisation and Exceptional items

325.81

200.77

947.23

- Depreciation and amortisation

26.42

46.76

 163.58

Profit / (Loss) from Operations before Other Income, Interest, Taxes and Exceptional items

299.39

154.01

783.65

- Interest (Net)

116.19

123.77

 474.16

Profit / (Loss) after Interest before Exceptional items & Tax

183.20

30.24

309.49

 Exceptional Items - Net Gain/(Loss)

 (145.13)

330.44

 794.72

Profit / (Loss) Before Tax

38.07

360.68

1,104.21

Taxes

12.85

9.40

 101.25

Net Profit / (Loss) for the period

25.22

351.28

 1,002.96

Paid up Share Capital

579.84

348.47

 579.83

- Equity (Face value of Rs.10/-)

Earnings/(Loss) per share - Basic - (Rs. Per share)

0.44

10.08

25.87

Earnings/(Loss) per share - Diluted - (Rs. Per share)

0.43

(2.25)

3.34

Aggregate of Public shareholding*

Number of shares

40,675,790

21,527,157

40,674,038

Percentage of holding (to total shareholding)

70.15%

61.78%

70.15%

Promoters and promoter group

Shareholding

a) Pledged/Encumbered

- Number of shares

 4,101,801

 2,508,361

4,101,801

- Percentage of shares (as a % of the total shareholding of promoter and promoter group)

50.63%

61.15%

50.63%

 - Percentage of shares (as a% of the total share capital of the company)

7.07%

7.20%

7.07%

 b) Non-encumbered

- Number of Shares

 4,000,000

 1,593,440

4,000,000

- Percentage of shares (as a% of the total shareholding of promoter and promoter group)

49.37%

38.85%

49.37%

- Percentage of shares (as a % of the total share capital of the company)

6.90%

4.57%

6.90%

* Total public shareholding as defined under clause 40A of the listing agreement (excludes shares held by founders and GDR holders)

SEGMENTAL REPORTING:

Consolidated

Quarter Ended

For the year Ended

30th June

31st March

2010

2009

2010

Unaudited

Unaudited

Audited

1. Segmental Revenue:

a. Products & Product related

1,014.37

943.53

 3,829.43

b. Services

173.11

232.56

 801.35

1,187.48

1,176.09

 4,630.78

2. Segmental Profit/(Loss) before tax, interest & exceptional Items

a. Products & Product related

300.59

138.15

780.20

b. Services

 (1.20)

15.86

3.45

299.39

154.01

783.65

Less: Interest (Net)

116.19

123.77

474.16

Add / (Less) : Other Unallocable Income/(Expenditure)&Exceptional items [Net]

 (145.13)

330.44

794.72

Profit Before Taxation

38.07

360.68

1,104.21

3. Details of Capital Employed

a. Products & Product related

Segment Assets

11,507.14

17,168.78

11,551.37

Segment Liabilities

9,387.44

13,346.40

9,188.49

b. Services

Segment Assets

334.04

348.47

346.61

Segment Liabilities

35.43

38.28

46.71

Notes :

1. The above results were taken on record and approved by the Board of Directors in their meeting held on 29th July 2010.

2. The corresponding previous quarter figures have been re-grouped and/or re-arranged to conform with the current quarter.

3. Exceptional items comprise exchange differences arising on (a) restatement of Foreign Currency Convertible Bonds and (b) restatement/settlement of intra group foreign currency loans and advances.

4. During the quarter ended June 30, 2010, the Company has granted 715,000 options under its ESOP 2008 scheme and 84,000 options under its ESOP 2005 scheme. During the quarter ended June 30, 2010, the Company has allotted 1,300 equity shares under its ESOP 2005 scheme to the option holders upon exercise of stock options.

5. Information on Investor complaints pursuant to Clause 41 of the Listing Agreement for the quarter ended June 30, 2010 :

Opening Balance - Nil, Received - 1, Attended - 1, Closing Balance - Nil

6. Post the end of the quarter, the Company has allotted 1,199,601 equity shares pursuant to conversion of FCCBs aggregating to US$ 2 Million.

7. On a standalone basis, the company has a turnover of Rs.878.81 Mn, Profit Before Tax (PBT) of Rs. 147.03 Mn and Profit After Tax (PAT) of Rs. 147.03 Mn for the quarter ended June 30, 2010. On a standalone basis, for the quarter ended June 30, 2009 (Unaudited), the company had a turnover of Rs. 768.87 Mn, Profit Before Tax (PBT) of Rs. 526.45 Mn and Profit After Tax (PAT) of Rs. 526.45 Mn. On a standalone basis, for the year ended March 31, 2010 (Audited), the company had a turnover of Rs. 3201.44 Mn, Profit Before Tax (PBT) of Rs. 1380.80 Mn and Profit After Tax (PAT) of Rs. 1368.61 Mn.

8. During the quarter ending March 31, 2010, the shareholders of the Company had approved a proposal for creation of a Reserve for Business Restructure and utilisation of the same for certain permitted utilisations with effect from April 1, 2009. The Proposal was approved by the Hon'ble High court of Karnataka and was given effect to during the quarter and year ended March 31, 2010. The results for the quarter ended June 30, 2009 are as previously published by the Company and do not include the adjustments relating to the Proposal.

9. Pursuant to clause 41 of the Listing Agreement, the Company has opted to publish the consolidated financial results. The standalone financial results, however, are being made available to the Stock Exchanges where the securities of the Company are listed and are also being posted on the Company's website www.subexworld.com.

Certain statements in this release concerning our performance may be forward looking statements which involve risks and uncertainties that could cause actual results to vary materially from those in such statements. These risks and uncertainties include, and are not limited to, fluctuations in earnings, intense competition and success of investments.

 By Order of the Board

Bangalore

29th July, 2010

Subash Menon

 Founder Chairman, Managing Director & CEO

For further details on the results, please visit our website: www.subexworld.com