3rd Quarter Results

SUBEX LTD

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

Unaudited Financial Results for the quarter ended December 31, 2010 - CONSOLIDATED

(Rs. In Millions)

Quarter Ended

Nine Months Ended

For the year Ended

31st December

31st December

31st March

2010

2009

2010

2009

2010

Unaudited

Unaudited

Unaudited

Unaudited

Audited

Sales - Product & Product related

1,075.96

1,019.68

3,157.51

2,860.33

3,829.43

- Services

 155.88

190.76

496.87

623.29

801.35

Net Sales

1,231.84

1,210.44

3,654.38

3,483.62

4,630.78

Other Operating Income

35.88

55.27

87.19

118.03

117.03

Income from Operations

1,267.72

1,265.71

3,741.57

3,601.65

4,747.81

Expenditure

- Cost of Hardware, Software & Services

16.04

27.08

55.78

87.74

118.06

- Personnel Cost

653.70

663.90

2,009.86

2,285.00

2,968.34

- Other Expenditure

211.35

287.51

622.95

560.40

714.18

- Total

881.09

978.49

2,688.59

2,933.14

3,800.58

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

386.63

287.22

1,052.98

668.51

947.23

- Depreciation and amortisation

26.60

35.37

80.53

133.31

163.58

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

360.03

251.85

972.45

535.20

783.65

- Interest (Net)

106.94

117.17

326.79

364.23

474.16

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

253.09

134.68

645.66

170.97

309.49

- Exceptional Items - Net Gain/(Loss)

 (25.25)

304.90

 (59.21)

613.44

794.72

Profit / (Loss) Before Tax

227.84

439.58

586.45

784.41

1,104.21

 - Taxes

12.68

20.87

38.87

46.42

101.25

Net Profit / (Loss) for the period

215.16

418.71

547.58

737.99

1,002.96

Paid up Share Capital

651.82

391.98

651.82

391.98

579.83

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

Earnings/(Loss) per share - Basic - (Rs. Per share) - Not Annualised

3.30

11.64

8.85

21.03

25.87

Earnings/(Loss) per share - Diluted - (Rs. Per share) - Not Annualised

2.15

2.42

6.14

2.42

3.34

Aggregate of Public shareholding:*

Number of shares

47,888,210

25,885,558

47,888,210

25,885,558

40,674,038

Percentage of holding (to total shareholding)

73.47%

66.04%

73.47%

66.04%

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%

6.40%

10.13%

6.40%

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%

4.07%

2.30%

4.07%

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

Nine Months Ended

For the year Ended

31st December

31st December

31st March

2010

2009

2010

2009

2010

Unaudited

Unaudited

Unaudited

Unaudited

Audited

1. Segmental Revenue:

a. Products & Product related

1,075.96

1,019.68

3,157.51

2,860.33

3,829.43

b. Services

155.88

190.76

496.87

623.29

801.35

1,231.84

1,210.44

3,654.38

3,483.62

4,630.78

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

a. Products & Product related

351.91

264.58

970.10

523.51

780.20

b. Services

8.12

 (12.73)

2.35

11.69

3.45

360.03

251.85

972.45

535.20

783.65

Less: Interest (Net)

106.94

117.17

326.79

364.23

474.16

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

 (25.25)

304.90

 (59.21)

613.44

794.72

Profit Before Taxation

227.84

439.58

586.45

784.41

1,104.21

3. Details of Capital Employed

a. Products & Product related

Segment Assets

11,849.09

16,916.68

11,849.09

16,916.68

11,551.37

Segment Liabilities

1,882.74

1,470.51

1,882.74

1,470.51

2,019.23

b. Services

Segment Assets

312.49

359.33

312.49

359.33

346.61

Segment Liabilities

37.74

51.28

37.74

51.28

46.71

Notes :

1. The above results were taken on record and approved by the Board of Directors in their meeting held on 27th January 2011.

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

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 and Managerial Remuneration of prior years approved by the Central Government during the current quarter.

4. During the quarter ended December 31, 2010, the Company has granted 31,800 options under its ESOP 2005 scheme.

5. Information on Investor complaints pursuant to Clause 41 of the Listing Agreement for the quarter ended December 31, 2010 :

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

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

(Rs. In Millions)

Particulars

Quarter Ended

Nine Months Ended

For the year Ended

31st December

31st December

31st March

2010

2009

2010

2009

2010

Unaudited

Unaudited

Unaudited

Unaudited

Audited

Turnover

742.43

806.11

2,355.32

2,390.38

3,201.44

Profit Before Tax

111.89

466.81

513.10

1,082.45

1,380.80

Profit After Tax

103.39

466.76

502.61

1,070.40

1,368.61

7. 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 nine months ended December 31, 2009 are as previously published by the Company and do not include the adjustments relating to the Proposal.

8. 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

27th January, 2011

Subash Menon

Founder Chairman, Managing Director & CEO

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