India Globalization Capital, Inc a company competing in the rapidly growing materials and infrastructure industry, announced financial results for the Fiscal Year Ended March 31, 2012.
Mr Ram Mukunda CEO of India Globalization Capital said that "We had some significant challenges in our business this past year but made enormous progress in repositioning the company for profitable growth in the future."
Mr Mukunda explained that "Because of the moratorium on iron ore mining throughout southern India, which lasted for all of fiscal 2012, we were unable to fill our orders from Chinese customers. Further, the integration of Ironman has been more complex and taken longer than we anticipated. Yet, with the integration of Ironman nearing completion, our mines in China will begin operating this current quarter. Additionally, the revenue from those mines will be augmented by our exports of iron ore from India when the Indian government relieves the mining ban. Recent press reports and government statements indicate that mines in Karnataka, India will be reopened this fiscal year. Our plan for fiscal 2013 is to integrate Ironman and begin production in China, ship iron ore from India to China when the mines in India open, and consider another acquisition in the materials space to supplement our current facilities in Linxi."
Mr Mukunda added that "Some highlights from fiscal 2012 include, 1) we settled or paid down almost USD 3.79 million in notes, short term borrowing and trade payables; 2) we reached a settlement with Sricon, adding liquidity to our balance sheet; 3) we acquired Ironman with two mine sites and two beneficiation plants; 4) we purchased a third mine and equipped it with a state of the art beneficiation plant increasing the value of our total iron ore reserves in Linxi to about USD 550 million; and 5) we repositioned the Company to become profitable by cutting costs and realigning SG&A in India and investing in mines in China that will soon begin production."
In FYE 2012, the Company reported a GAAP loss of (USD 7.75 million), and an EPS of (USD .27), compared to a loss of about (USD 20.24 million) in FYE 2011. The GAAP loss includes several non cash and one-time expenses related primarily to the acquisition of Ironman and the impending settlement with Sricon. Moving forward we have a significantly reduced and realigned SG&A and debt structure that will help bring the Company to profitability.
Total revenue was USD 4.199 million for the FYE March 31, 2012, compared to USD 4.073 million for FYE 2011.
Source - India Globalization Capital
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