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Economic meltdown affecting India
India, which was establizing itself as a vibrant
economy, is also being hit by recession. The country's GDP, which
posted as high as 9.5 in 2006-'07, has slumped to 6 per cent this
year.... KSOU registrar K R Jayapraksh Rao
Software exports grew to a whopping $40 billion
in FY 2008 from a mere $50 million in 1991, with a compounded
growth rate of 30 percent over the last three-four years, the
economic slowdown has reduced the growth to 20 percent. .......Infosys
Technologies vice-chairman Nandan M. Nilekani
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IGC,
reported a net loss of about 1.7 million dollars in the last three
months of 2008
BETHESDA, Md., Feb. 18, 2009
Sukhbir Sahota/ Gary Singh/LA
IGC, based in Bethesda, Maryland and operates through two infrastructure
companies in India, Sricon Infrastructure Private Limited ("Sricon")
and Techni Bharathi, Limited ("TBL"), filed its third
quarter financial results, on Form 10-Q, for fiscal year 2009, which
ended on December 31, 2008:
- IGC reported revenue of approximately $3.8 million.
- A a net loss of approximately $1.7 million inclusive of approximately
$1.5 million of one-time expenses and approximately $300,000 of
foreign exchange losses. The basic and fully diluted Loss Per
Share, was approximately $0.20.
- For the nine months ended December 31, 2008, its revenue of
approximately $32 million; net income, before one-time expenses,
of around $600,000, and EPS, before one-time expenses, of around
$0.16 (EPS).
- For the nine months ended December 31, 2008, inclusive of one-time
expenses IGC reported a net loss of about $374 thousand and EPS
of ($0.04).
- Total Stockholders equity of approximately $24.3 million.
A Chief executive officer of IGC, Ram Mukunda said:
- As we said in the last quarter, due to illiquidity we began
to adjust our business model and stream line our operations. Specifically,
we have taken the following steps:
- We have curtailed the number of contracts we are working.
- We have subcontracted, or off loaded some of our contracts
to other contractors
- We have taken steps to shed costs, including laying off
personnel.
- We continue to be very bullish about the long term prospects
of the infrastructure sector in India, for the short and medium
term we are being pro active in conserving the relative strength
of our balance sheet by scaling down operations and constraining
growth until there is visibility on when the global illiquidity
will ab
We were unable to perform because of the tightening of credit,
as discussed on our last conference call. We also incurred legal
costs from the warrant tender offer and capital raising activity.
The foreign exchange losses occurred as the US dollar strengthened
against the Indian Rupee-the dollar rose by around 20 percent between
March 31, 2008 and December 31, 2008 and most of the Company's assets
are accounted for in Indian Rupees.
IGC, through its subsidiaries, has three core businesses:
- Highway and other heavy construction,
- Mining & quarrying
- Civil construction and engineering of high-temperature plants
Most of IGC's operations are based in India. The Company has offices
in Maryland, Mauritius, Nagpur, Cochin, Delhi and Bangalore. Copies
of IGC's filings with the SEC ............Source: India Globalization
Capital, Inc
Invest
in Infrastructure in India with IGC
Investing in small cap companies can provide large-scale
returns, especially if you add companies that have solid business
models with consistent revenue growth. India Globalization Capital
(AMEX: IGC) is a company that provides a strong market opportunity
for your portfolio. IGC controls two infrastructure companies in
India, which have three core competencies:
- Highway and other heavy construction
- Mining & quarrying
- Civil construction and engineering of high-temperature plants
.......
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