2nd quarter results

SUBEX LTD

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

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

(Rs. In Millions)

Quarter Ended

Half Year Ended

For the year Ended

30th September

30th September

31st March

2010

2009

2010

2009

2010

Unaudited

Unaudited

Unaudited

Unaudited

Audited

Sales - Product & Product related

1,067.18

897.12

2,081.55

1,840.65

3,829.43

- Services

167.88

199.97

340.99

432.53

801.35

Net Sales

1,235.06

1,097.09

2,422.54

2,273.18

4,630.78

Other Operating Income

12.55

71.05

51.31

122.50

117.03

Income from Operations

1,247.61

1,168.14

2,473.85

2,395.68

4,747.81

Expenditure

- Cost of Hardware, Software & Services

19.05

29.24

39.74

60.66

118.06

- Personnel Cost

674.11

804.36

1,356.16

1,621.10

2,968.34

- Other Expenditure

213.91

154.02

411.60

332.63

714.18

- Total

907.07

987.62

1,807.50

2,014.39

3,800.58

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

340.54

180.52

666.35

381.29

947.23

- Depreciation and amortisation

27.51

51.18

53.93

97.94

163.58

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

313.03

129.34

612.42

283.35

783.65

- Interest (Net)

103.66

123.29

219.85

247.06

474.16

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

209.37

6.05

392.57

36.29

309.49

 Exceptional Items - Net Gain/(Loss)

111.17

 (21.90)

 (33.96)

308.54

794.72

Profit / (Loss) Before Tax

320.54

 (15.85)

358.61

344.83

1,104.21

Taxes

13.34

16.15

26.19

25.55

101.25

Net Profit / (Loss) for the period

307.20

 (32.00)

332.42

319.28

1,002.96

Paid up Share Capital

651.82

348.47

651.82

348.47

579.83

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

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

4.92

(0.92)

5.52

9.16

25.87

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

1.92

(0.92)

3.94

(1.14)

3.34

Aggregate of Public shareholding:*

Number of shares

 47,888,210

21,527,157

47,888,210

21,527,157

40,674,038

Percentage of holding (to total shareholding)

73.47%

61.78%

73.47%

61.78%

70.15%

Promoters and promoter group

Shareholding

a) Pledged/Encumbered

- Number of shares

6,601,801

2,508,361

6,601,801

2,508,361

4,101,801

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

81.49%

61.15%

81.49%

61.15%

50.63%

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

10.13%

7.20%

10.13%

7.20%

7.07%

 b) Non-encumbered

- Number of Shares

1,500,000

1,593,440

1,500,000

1,593,440

4,000,000

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

18.51%

38.85%

18.51%

38.85%

49.37%

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

2.30%

4.57%

2.30%

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

Half Year Ended

For the year Ended

30th September

30th September

31st March

2010

2009

2010

2009

2010

Unaudited

Unaudited

Unaudited

Unaudited

Audited

1. Segmental Revenue:

a. Products & Product related

1,067.18

897.12

2,081.55

1,840.65

3,829.43

b. Services

167.88

199.97

340.99

432.53

801.35

1,235.06

1,097.09

2,422.54

2,273.18

4,630.78

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

a. Products & Product related

317.60

120.78

618.19

258.93

780.20

b. Services

 (4.57)

8.56

 (5.77)

24.42

3.45

313.03

129.34

612.42

283.35

783.65

Less: Interest (Net)

103.66

123.29

219.85

247.06

474.16

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

111.17

 (21.90)

 (33.96)

308.54

794.72

Profit Before Taxation

320.54

 (15.85)

358.61

344.83

1,104.21

3. Details of Capital Employed

a. Products & Product related

Segment Assets

11,851.45

17,016.59

11,851.45

17,016.59

11,551.37

Segment Liabilities

1,859.52

1,351.55

1,859.52

1,351.55

2,019.23

b. Services

Segment Assets

325.55

384.59

325.55

384.59

346.61

Segment Liabilities

41.60

43.97

41.60

43.97

46.71

STATEMENT OF ASSETS AND LIABILITIES

Particulars

As at 30th September

As at March 31

2010

2009

2010

Unaudited

Unaudited

Audited

SHAREHOLDERS FUND:

3,430.42

4,919.90

2,875.41

(a) Capital

651.82

348.47

579.83

(b) Employee Stock Option Oustanding

60.27

56.27

57.12

(c) Reserves and Surplus

2,718.33

4,515.16

2,238.46

LOAN FUNDS

5,933.40

10,506.76

6,341.55

DEFERRED TAX LIABILITY

0.93

1.27

1.00

TOTAL

9,364.75

15,427.93

9,217.96

FIXED ASSETS

164.19

254.16

195.75

GOODWILL

10,366.36

15,366.36

10,366.36

DEFERRED TAX ASSET

12.21

31.71

12.18

CURRENT ASSETS, LOANS AND ADVANCES

1,855.44

2,049.74

1,528.62

(a) Sundry Debtors

569.39

181.50

479.21

(b) Cash and Bank balances

51.06

166.90

72.39

(c) Other current assets

697.50

639.42

438.07

(d) Loans and Advances

537.49

1,061.92

538.95

Less: Current Liabilities and Provisions

3,033.45

3,110.87

3,030.36

(a) Liabilities

1,288.80

1,245.71

1,334.49

(b) Provisions

1,744.65

1,865.16

1,695.87

MISCELLANEOUS EXPENDITURE (NOT WRITTEN OFF OR ADJUSTED)

-

7.74

-

PROFIT AND LOSS ACCOUNT

-

829.09

145.41

TOTAL

9,364.75

15,427.93

9,217.96

Notes :

1. The above results were taken on record and approved by the Board of Directors in their meeting held on 29th October 2010. These results have been subjected to limited review by the statutory auditors.

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 September 30, 2010, the Company has granted 58,200 options under its ESOP 2005 scheme.

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

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

6. During the quarter ended September 30, 2010, the Company has allotted 7,197,607 equity shares pursuant to conversion of FCCBs aggregating to US$ 12 Million.

7. Summary of Key Standalone Financial results is as follows -

(Rs. In Millions)

Particulars

Quarter Ended

Half Year Ended

For the year Ended

30th September

30th September

31st March

2010

2009

2010

2009

2010

Unaudited

Unaudited

Unaudited

Unaudited

Audited

Turnover

734.08

815.40

1,612.89

1,584.27

3,201.44

Profit Before Tax

254.18

89.19

401.21

615.64

1,380.80

Profit After Tax

252.19

7.19

399.22

603.64

1,368.61

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 six months ended September 30, 2009 are as previously published by the Company and do not include the adjustments relating to the Proposal.

9. Pursuant to the Proposal approved by the High court referred to in Note 8 above, during the quarter and year ended March 31, 2010, the Company transferred an amount of Rs. 6700 million from the Securities Premium and Capital Reserve to a Business Restructuring Reserve, which was used to record certain permitted utilizations (including impairments etc) aggregating to Rs. 6499.79 million.

10. 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 October, 2010

Subash Menon

Founder Chairman, Managing Director & CEO

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