4th Quarter Results

SUBEX LTD

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

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

(Rs. In Millions)

Quarter Ended

For the year Ended

For the year Ended

31st March

31st March

31st March

2010

2009

2010

2009

Unaudited

Unaudited

Unaudited

Audited

Sales - Product & Product related

969.10

925.12

3,829.43

4,384.81

- Services

178.06

272.79

801.35

1,200.08

Net Sales

1,147.16

1,197.91

4,630.78

5,584.89

Other Income

-

135.49

117.03

140.66

Income from Operations

1,147.16

1,333.40

4,747.81

5,725.55

Expenditure

- Cost of Hardware, Software & Services

30.32

44.82

118.06

123.90

- Personnel Cost

683.34

878.58

2,968.34

3,866.80

- Other Expenditure

154.78

184.70

714.18

876.97

- Provision for Bad & Doubtful Debts

-

145.48

-

195.82

- Total

868.44

1,253.58

3,800.58

5,063.49

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

278.72

79.82

947.23

662.06

- Depreciation and amortisation

30.27

52.19

163.58

228.83

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

248.45

27.63

783.65

433.23

- Interest (Net)

109.93

115.55

474.16

434.81

Profit / (Loss) Before Exceptional items & Tax

138.52

(87.92)

309.49

(1.58)

 Exceptional Items - Net Gain/(Loss)

181.28

(153.39)

794.72

(1,717.59)

Profit / (Loss) Before Tax

319.80

(241.31)

1,104.21

(1,719.17)

Taxes

54.83

111.56

101.25

164.46

Net Profit / (Loss) for the period

264.97

(352.87)

1,002.96

(1,883.63)

Paid up Share Capital

579.83

348.47

579.83

348.47

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

Reserves excluding revaluation reserves

3,464.34

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

5.34

(10.13)

25.87

(54.05)

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

1.03

(10.13)

3.34

(54.05)

Aggregate of Public shareholding:*

Number of shares

40,674,038

21,600,258

40,674,038

21,600,258

Percentage of holding (to total shareholding)

70.15%

61.99%

70.15%

61.99%

Promoters and promoter group

Shareholding

a) Pledged/Encumbered

- Number of shares

4,101,801

2,508,361

4,101,801

2,508,361

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

50.63%

62.26%

50.63%

62.26%

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

7.07%

7.20%

7.07%

7.20%

 b) Non-encumbered

- Number of Shares

4,000,000

1,520,339

4,000,000

1,520,339

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

49.37%

37.74%

49.37%

37.74%

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

6.90%

4.36%

6.90%

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

For the Year Ended

For the year Ended

31st March

31st March

31st March

2010

2009

2010

2009

Unaudited

Unaudited

Unaudited

Audited

1. Segmental Revenue:

a. Products & Product related

969.10

925.12

3,829.43

4,384.81

b. Services

178.06

272.79

801.35

1,200.08

1,147.16

1,197.91

4,630.78

5,584.89

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

a. Products & Product related

256.69

17.36

780.20

311.25

b. Services

(8.24)

10.27

3.45

121.98

248.45

27.63

783.65

433.23

Less: Interest (Net)

109.93

115.55

474.16

434.81

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

181.28

(153.39)

794.72

(1,717.59)

Profit Before Taxation

319.80

(241.31)

1,104.21

(1,719.17)

3. Details of Capital Employed

a. Products & Product related

Segment Assets

16,940.39

17,149.11

16,940.39

17,149.11

Segment Liabilities

8,141.01

13,743.96

8,141.01

13,743.96

b. Services

Segment Assets

346.61

384.41

346.61

384.41

Segment Liabilities

63.42

67.90

63.42

67.90

Notes :

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

2. The previous year / quarter figures have been re-grouped and/or re-arranged to conform with the current year / 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 current quarter, the Company has granted 41,200 options under its ESOP 2005 scheme, 598,954 options under its ESOP 2008 scheme and NIL options under its ESOP 2000 scheme.

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

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

6. During the previous quarter ended December 31, 2009, the Company restructured its then 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. 1504.20 Million (after adjusting for expenses incurred), which has been credited to Capital Reserve. This was subject matter of a qualification in the review report of the auditors for the quarter and period ended December 31, 2009 since such amounts were not credited to the Profit and Loss account. The Company firmly believes that this reduction is of a capital nature and has also sought the approval of the Hon'ble High court of Karnataka of a Proposal which interalia envisages transfer of the above credit to a Business restructuring reserve (refer note 8 below).

7. During the quarter ended March 31, 2010, the Company has allotted 14,785,083 equity shares pursuant to conversion of FCCBs aggregating to US$ 24.65 million out of the Company's US $ 98.7 million 5 % Coupon convertible Unsecured Foreign Currency Convertible Bonds.

8. The shareholders of the Company at its meeting held on 4th March 2010 approved the board's proposal (Proposal) for transferring amounts from the Securities premium and Capital reserves as on April 1, 2009 and thereafter, to a Business restructuring reserve (BRR) for permitted utilisations as mentioned in the Proposal. The Company's petition seeking approval of the Proposal has been filed with, heard and approved by the Hon'ble High court of Judicature of Karnataka at Bangalore and the copy of order of the court is awaited.

9. Certain Legal expenses qualifying for permitted utilisations as per the Proposal amounting to Rs 43 Mn is being deferred pending the order from the court.

10. During the quarter ended March 31, 2010, the Company has allotted 4,000,000 equity shares under preferential issue to M/s Woodbridge Consultants, an entity belonging to the Promoter/Promoter Group.

11. On a standalone basis, the company has 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 for the year ended March 31, 2010. For the quarter ended March 31, 2010, the company has a turnover of Rs. 811.06 Mn, Profit Before Tax (PBT) of Rs. 298.35 Mn and Profit After Tax (PAT) of Rs. 298.21 Mn.

12. 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 April, 2010

Subash Menon

Founder Chairman, Managing Director & CEO

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