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, 2009 - CONSOLIDATED

(Rs. In Millions)

Quarter Ended

Nine Months Ended

For the year Ended

31st December

31st December

31st March

2009

2008

2009

2008

2009

Unaudited

Unaudited

Unaudited

Unaudited

Audited

Sales - Product & Product related

1,019.68 

1,279.03 

2,860.33 

3,459.69 

4,384.81 

- Services 

190.76 

327.73 

623.29 

927.29 

1,200.08 

Net Sales

1,210.44 

1,606.76 

3,483.62 

4,386.98 

5,584.89 

Other Income

55.27 

2.19 

118.03 

5.17 

140.66 

Income from Operations

1,265.71 

1,608.95 

3,601.65 

4,392.15 

5,725.55 

Expenditure

- Cost of Hardware, Software & Services

27.08 

47.20 

87.74 

79.08 

123.90 

- Personnel Cost

663.90 

951.60 

2,285.00 

2,988.22 

3,866.80 

- Other Expenditure

287.51 

215.70 

560.40 

692.27 

876.97 

- Provision for Bad & Doubtful Debts 

-

50.34 

-

50.34 

195.82 

- Total

978.49 

1,264.84 

2,933.14 

3,809.91 

5,063.49 

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

287.22 

344.11 

668.51 

582.24 

662.06 

- Depreciation and amortisation

35.37 

58.45 

133.31 

176.64 

228.83 

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

251.85 

285.66 

535.20 

405.60 

433.23 

- Interest (Net)

117.17 

113.34 

364.23 

319.26 

434.81 

Profit / (Loss) Before Exceptional items & Tax

134.68 

172.32 

170.97 

86.34 

(1.58)

 Exceptional Items - Net Gain/(Loss) 

304.90 

(304.20)

613.44 

(1,564.20)

(1,717.59)

Profit / (Loss) Before Tax

439.58 

(131.88)

784.41 

(1,477.86)

(1,719.17)

Taxes 

20.87 

25.59 

46.42 

52.90 

164.46 

Net Profit / (Loss) for the period

418.71 

(157.47)

737.99 

(1,530.76)

(1,883.63)

Paid up Share Capital

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

391.98 

348.47 

391.98 

348.47 

348.47 

Reserves excluding revaluation reserves

3,464.34 

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

11.64 

(4.52)

21.03 

(43.93)

(54.05)

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

2.42 

(4.52)

2.42 

(43.93)

(54.05)

Aggregate of Public shareholding:*

Number of shares

25,885,558 

21,735,218 

25,885,558 

21,735,218 

21,600,258 

Percentage of holding (to total shareholding)

66.04%

62.38%

66.04%

62.38%

61.99%

Promoters and promoter group

Shareholding 

a) Pledged/Encumbered

- Number of shares

2,508,361 

2,508,361 

2,508,361 

2,508,361 

2,508,361 

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

61.15%

64.42%

61.15%

64.42%

62.26%

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

6.40%

7.20%

6.40%

7.20%

7.20%

 b) Non-encumbered 

- Number of Shares

1,593,440 

1,385,379 

1,593,440 

1,385,379 

1,520,339 

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

38.85%

35.58%

38.85%

35.58%

37.74%

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

4.07%

3.98%

4.07%

3.98%

4.36%

* 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

2009

2008

2009

2008

2009

Unaudited

Unaudited

Unaudited

Unaudited

Audited

1. Segmental Revenue:

a. Products & Product related

1,019.68 

1,279.03 

2,860.33 

3,459.69 

4,384.81 

b. Services 

190.76 

327.73 

623.29 

927.29 

1,200.08 

1,210.44 

1,606.76 

3,483.62 

4,386.98 

5,584.89 

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

a. Products & Product related

264.58 

238.19 

523.51 

293.89 

311.25 

b. Services

(12.73)

47.47 

11.69 

111.71 

121.98 

251.85 

285.66 

535.20 

405.60 

433.23 

Less: Interest (Net)

117.17 

113.34 

364.23 

319.26 

434.81 

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

304.90 

(304.20)

613.44 

(1,564.20)

(1,717.59)

Profit Before Taxation

439.58 

(131.88)

784.41 

(1,477.86)

(1,719.17)

3. Details of Capital Employed

a. Products & Product related

Segment Assets 

16,916.68 

16,952.44 

16,916.68 

16,952.44 

17,149.11 

Segment Liabilities

9,854.32 

11,402.37 

9,854.32 

11,402.37 

13,743.96 

b. Services 

Segment Assets 

359.33 

382.83 

359.33 

382.83 

384.41 

Segment Liabilities

51.28 

50.20 

51.28 

50.20 

67.90 

Notes :

1. The above results were taken on record and approved by the Board of Directors in their meeting held on 19th January 2010. These results have been subjected to limited review by the statutory auditors.

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

4. During the current period, the company has granted 13,900 options under its ESOP 2005 and NIL options under its ESOP 2000 schemes.

5. During the quarter ended December 31, 2009, the Company has allotted 1,203 equity shares under its ESOP 2005 scheme and 1,210 equity shares under its ESOP 2000 scheme to the option holders upon exercise of stock options.

6. Information on Investor complaints pursuant to Clause 41 of the Listing Agreement for the quarter ended December 31, 2009 :

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

7. During the current quarter, the Company offered to restructure its outstanding FCCBs having a face value of USD 180 Million by offering in exchange new FCCBs having a face value of USD 126 Million. Pursuant to the offer, bonds with a face value of USD 141 Million were exchanged for new bonds with a face value of USD 98.7 Million. This has resulted in a reduction of liability of Rs. 1526.90 Million (after adjusting for expenses incurred), which has been credited to Capital Reserve. The new bonds carry a coupon rate of 5% and is redeemable in March 2012 (if not converted to equity shares prior to that date in accordance with the terms of the offer) at a premium of 43.1% of the face value of the bonds. 

8. During the quarter ended December 31, 2009, holders of the new bonds with a face value US$ 7.25 Million exercised their option to convert the bonds into equity shares. Consequently, the Company allotted 4,348,554 equity shares as per the terms of the bonds. 

9. Post the end of the quarter, the Company has allotted 6,117,965 equity shares pursuant to conversion of FCCBs aggregating to US$ 10.2 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

19th January, 2010

Subash Menon

 Founder Chairman, Managing Director & CEO

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