31 Jan 2012 12:08
January 31, 2012
To
The London Stock Exchange
10 Paternoster SquareLondonEC4M 7LS
Dear Sir/Madam,
Sub: Outcome of the Board Meeting held on January 31, 2012
Please be informed that the following important items were discussed and approved at the Board Meeting held today at the Registered Office of the Company:
Ø Approval of the unaudited standalone and consolidated Financial Results of the Company for the quarter ended December 31, 2011.
Ø Taking on record resignation of Mr. Andrew Garman and Mr. Harry Berry as Directors of the Company.
We request you to take the aforesaid notification on record.
For Subex Limited
Ramanathan J
Vice President-Finance & Company Secretary
ENCL: As above.
SUBEX LTD | ||||||
Registered office: Adarsh Tech Park, Outer Ring Road, Devarabisanahalli, Bangalore - 560 037 | ||||||
Unaudited Financial Results for the quarter ended December 31, 2011 - CONSOLIDATED | ||||||
(Rs. In Lakhs except per share data) | ||||||
Quarter Ended | Quarter ended | Quarter Ended | Nine Months ended | For the year Ended | ||
31st December | 30th September | 31st December | 31st December | 31st March | ||
2011 | 2011 | 2010 | 2011 | 2010 | 2011 | |
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | |
Sales - Product & Product related | 11,728 | 11,703 | 10,759 | 33,321 | 31,575 | 41,812 |
- Services | 1,414 | 1,113 | 1,559 | 3,664 | 4,969 | 6,463 |
Net Sales | 13,142 | 12,816 | 12,318 | 36,985 | 36,544 | 48,275 |
Other Operating Income | 145 | 74 | 359 | 886 | 872 | 984 |
Income from Operations | 13,287 | 12,890 | 12,677 | 37,871 | 37,416 | 49,259 |
Expenditure | ||||||
- Cost of Hardware, Software & Services | 167 | 297 | 161 | 626 | 558 | 797 |
- Personnel Cost | 6,420 | 6,884 | 6,537 | 19,895 | 20,099 | 26,152 |
- Other Expenditure | 2,261 | 1,981 | 2,114 | 6,465 | 6,230 | 8,199 |
- Total | 8,848 | 9,162 | 8,812 | 26,986 | 26,887 | 35,148 |
Profit / (Loss) before Interest, Taxes, Depreciation & amortisation and Exceptional items | 4,439 | 3,728 | 3,865 | 10,885 | 10,529 | 14,111 |
- Depreciation and amortisation | 190 | 209 | 266 | 609 | 805 | 1,045 |
Profit / (Loss) from Operations before Other Income, Interest, Taxes and Exceptional items | 4,249 | 3,519 | 3,599 | 10,276 | 9,724 | 13,066 |
- Interest (Net) | 1,104 | 1,066 | 1,069 | 3,201 | 3,268 | 4,242 |
Profit / (Loss) after Interest before Exceptional items & Tax | 3,145 | 2,453 | 2,530 | 7,075 | 6,456 | 8,824 |
Exceptional Items (Net) | (1,217) | (3,782) | (252) | (5,091) | (592) | (505) |
Profit / (Loss) Before Tax | 1,928 | (1,329) | 2,278 | 1,984 | 5,864 | 8,319 |
Taxes | 291 | (35) | 127 | 319 | 389 | 442 |
Net Profit / (Loss) for the Period/Year (Refer Note 9 below) | 1,637 | (1,294) | 2,151 | 1,665 | 5,475 | 7,877 |
Paid up Share Capital | 6,931 | 6,931 | 6,518 | 6,931 | 6,518 | 6,931 |
- Equity (Face value of Rs.10/-) | ||||||
Earnings per share - Basic - (Rs. Per share) | 2.36 | (1.87) | 3.30 | 2.40 | 8.85 | 12.47 |
Earnings per share - Diluted - (Rs. Per share) | 2.33 | (1.87) | 2.15 | 2.37 | 6.14 | 8.62 |
Aggregate of Public shareholding:* | ||||||
Number of shares | 54,200,225 | 52,074,405 | 47,888,210 | 54,200,225 | 47,888,210 | 52,016,189 |
Percentage of holding (to total shareholding) | 78.20% | 75.13% | 73.47% | 78.20% | 73.47% | 75.05% |
Promoters and promoter group | ||||||
Shareholding | ||||||
a) Pledged/Encumbered | ||||||
- Number of shares | 7,601,801 | 6,601,801 | 6,601,801 | 7,601,801 | 6,601,801 | 6,601,801 |
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) | 93.83% | 81.49% | 81.49% | 93.83% | 81.49% | 81.49% |
- Percentage of shares (as a% of the total share capital of the company) | 10.97% | 9.52% | 10.13% | 10.97% | 10.13% | 9.53% |
b) Non-encumbered | ||||||
- Number of Shares | 500,000 | 1,500,000 | 1,500,000 | 500,000 | 1,500,000 | 1,500,000 |
- Percentage of shares (as a% of the total shareholding of promoter and promoter group) | 6.17% | 18.51% | 18.51% | 6.17% | 18.51% | 18.51% |
- Percentage of shares (as a % of the total share capital of the company) | 0.72% | 2.16% | 2.30% | 0.72% | 2.30% | 2.16% |
* 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 | Quarter Ended | Quarter Ended | Nine Months Ended | For the year Ended | ||
31st December | 30th September | 31st December | 31st December | 31st March | ||
2011 | 2011 | 2010 | 2011 | 2010 | 2011 | |
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | |
1. Segmental Revenue: | ||||||
a. Products & Product related | 11,728 | 11,703 | 10,759 | 33,321 | 31,575 | 41,812 |
b. Services | 1,414 | 1,113 | 1,559 | 3,664 | 4,969 | 6,463 |
13,142 | 12,816 | 12,318 | 36,985 | 36,544 | 48,275 | |
2. Segmental Profit/(Loss) before tax, interest & exceptional Items | ||||||
a. Products & Product related | 4,210 | 3,610 | 3,518 | 10,470 | 9,700 | 12,962 |
b. Services | 39 | (91) | 81 | (194) | 24 | 104 |
4,249 | 3,519 | 3,599 | 10,276 | 9,724 | 13,066 | |
Less: Interest (Net) | 1,104 | 1,066 | 1,069 | 3,201 | 3,268 | 4,242 |
Add / (Less) : Other Unallocable Income/(Expenditure) & Exceptional items [Net] | (1,217) | (3,782) | (252) | (5,091) | (592) | (505) |
Profit Before Taxation | 1,928 | (1,329) | 2,278 | 1,984 | 5,864 | 8,319 |
3. Details of Capital Employed | ||||||
a. Products & Product related | ||||||
Segment Assets | 107,879 | 103,292 | 118,491 | 107,879 | 118,491 | 103,533 |
Segment Liabilities | 17,399 | 15,784 | 18,827 | 17,399 | 18,827 | 17,798 |
b. Services | ||||||
Segment Assets | 1,317 | 1,303 | 3,125 | 1,317 | 3,125 | 1,555 |
Segment Liabilities | 199 | 236 | 377 | 199 | 377 | 362 |
Notes : | ||||||
1. The above results were taken on record and approved by the Board of Directors in their meeting held on 31st January 2012. These results have been subjected to limited review by the statutory auditors. | ||||||
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 - | ||||||
Particulars | Quarter Ended 31st December | Quarter Ended 30th September | Quarter Ended 31st December | Nine Months Ended 31st December | Year Ended 31st March | |
2011 | 2011 | 2010 | 2011 | 2010 | 2011 | |
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | |
Exchange (Loss)/Gain arising on restatement of Foreign Currency Convertible Bonds and restatement/settlement of intra group foreign currency loans and advances (Refer Note 9 below) | (1,025) | (3,838) | 81 | (4,955) | (259) | (172) |
Reversal of stock compensation expenses recorded earlier pursuant to voluntary surrender of options by employees during the current quarter | 404 | - | - | 404 | - | - |
Managerial Remuneration of earlier years charged off during the year ended March 31, 2011 on approval from the Central Government | - | - | (333) | - | (333) | (333) |
Gain on Sale of Assets pertaining to Activation business during the quarter ended September 30, 2011 net of Redundancy costs | - | 56 | - | 56 | - | - |
Redundancy costs | (596) | - | - | (596) | - | - |
TOTAL | (1,217) | (3,782) | (252) | (5,091) | (592) | (505) |
4. During the Quarter ended December 31, 2011, the company has granted 1,242,841 options under its ESOP 2005 scheme and 1,019,583 options under its ESOP 2008 scheme. | ||||||
5. Information on Investor complaints pursuant to Clause 41 of the Listing Agreement for the Quarter ended December 31, 2011 : | ||||||
Opening Balance - Nil, Received - 10, Attended - 10, Closing Balance - Nil | ||||||
6. Summary of Key Standalone Financial results is as follows -
| ||||||
Particulars | Quarter Ended | Quarter Ended | Quarter Ended | Nine Months Ended | Year Ended | |
31st December | 30th September | 31st December | 31st December | 31st March | ||
2011 | 2011 | 2010 | 2011 | 2010 | 2011 | |
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | |
Turnover | 9,267 | 7,854 | 7,424 | 24,769 | 23,553 | 31,355 |
Profit Before Tax | 1,597 | (2,955) | 1,118 | (755) | 5,132 | 7,257 |
Profit After Tax | 1,597 | (2,955) | 1,033 | (865) | 5,027 | 7,151 |
7. The Company has outstanding foreign currency convertible bonds (FCCBs) having face value of USD 938 Lakhs which if not converted earlier, are redeemable on 9th March 2012 along with premium of USD 376 Lakhs and the related costs that are determinable on redemption. The Company is pursuing various options to meet FCCB debt obligations that arise in March 2012. The premium payable on the redemption along with related costs of redemption if any, would be accrued against the amounts available in the Securities premium account/Business Restructuring Reserve, and the balance costs, if any, would be accrued in the Profit & Loss account. | ||||||
8. As permitted under the Proposal approved by the Hon'ble High court of Karnataka, the company during the year ended March 31, 2011, transferred certain amounts standing to the credit of Securities Premium and Capital Reserve to the Business Restructuring Reserve and utilised the same for permitted utilisations to the extent of Rs. 18,304 Lakhs. Had the Proposal not provided for the above accounting treatment: - Other Expenditure and the loss under Exceptional Items for the year ended March 31, 2011 would have been higher by Rs. 1,000 Lakhs and Rs 17,304 Lakhs respectively; - Net Profit for the year ended March 31, 2011 would have been lower by Rs. 18,304 Lakhs; and - Basic and Diluted (Loss) per share for the year ended March 31, 2011 would have been Rs. (16.50). | ||||||
9. Pursuant to the notification dated December 29, 2011 issued by the Ministry of Corporate affairs, the Company has opted to adopt the transitional provisions under the Accounting Standard 11 'The Effects of Changes in Foreign Exchange rates' with effect from April 1, 2011. Accordingly, exchange differences arising on restatement of all long term monetary foreign currency assets and liabilities at rates different from those at which they were initially recorded or reported in previous financial statements (whichever is later) are accumulated in the Foreign Currency Monetary Item Translation Difference Account and are amortised over the balance period of such long term asset / liability. Consequent to the above, exchange fluctuation losses (net) arising on restatements of such items have been deferred to the extent of Rs.2,724 Lakhs at December 31, 2011. The profits reported in the quarter ended June 30, 2011 would have been higher by Rs. 65 Lakhs and losses reported in quarter ended September 30, 2011 would have been lower by Rs. 2,471 Lakhs respectively, had the above policy were to have been followed for the said periods. | ||||||
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.subex.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 | ||||||
31st January, 2012 | Subash Menon | |||||
Founder Chairman, Managing Director & CEO | ||||||
For further details on the results, please visit our website: www.subex.com | ||||||