Archive for the ‘India Globalization Capital Inc. IGC’ Category

India Globalization Capital, Inc. (IGC) Announces Profitable Third Quarter

Thursday, February 14th, 2013

India Globalization Capital has announced financial results for the third quarter ending Dec. 31, 2012.

“We are pleased to report profitability this quarter due to our considerable efforts to realign and focus our equipment, processes and people on the iron ore mining business, cut costs from unprofitable construction contracts and renegotiate or extinguish expense liabilities and debt,” said Ram Mukunda, CEO of India Globalization Capital. “Our revenues for the quarter rose dramatically to nearly $4 million, and we achieved earnings of $0.01 per share.”

The company’s total revenue was $3,933,906 for the three months ending Dec. 31; this is compared with $986,799 for the corresponding time period of 2011. This revenue increase resulted from a rise in trading activity as the company gears up for production in its mines. One revenue component of $802,746 was the result of closing out a construction contract that TBL, the company’s Indian subsidiary, was engaged in. In the next fiscal year beginning in April, TBL projects that revenue and margins will rise as iron ore prices are expected to trend up from increased infrastructure activity in China, India, the U.S., and other locations across the globe. It is the company’s current expectation to begin purchasing low-grade iron ore after the Chinese New Year and winter and to begin transporting it to plants for further beneficiation and sale to customers. IGC has four mines in Inner Mongolia and three beneficiation plants with more than $500 million in estimated reserves measured at $125 per ton.

During the three months that ended Dec. 31, IGC reported a GAAP net income of $310,892 and a GAAP EPS of $0.01 per share, as contrasted with a consolidated net loss of $1,901,375 and a GAAP EPS loss of $0.09 for the same three-month period of 2011. The substantial earnings shift is due to four factors: a significant cut in SG&A as the company aligns its resources for mining and trading; redeployment of construction equipment for mining; a marked decrease in high interest loans and liability; and a rise in iron ore trading revenue as well as revenue associated with the closure of a construction contract. As IGC beneficiates iron ore by converting low-grade iron ore to high-grade iron ore – in an environment where iron prices are trending higher – the arbitrage between low- and high-grade iron ore will increase and drive the company’s margins and earnings higher. IGC has put a great deal of energy into aligning its resources and integrating its mining business, and the company predicts that, based on current iron ore pricing trends, its next fiscal year will be profitable.

IGC’s selling, general, and administrative expenses for the period ending Dec. 31 were $153,789, as compared with $968,890 for the same period in 2011. The company has significantly cut employees and overheads and eliminated recurring contracts associated with construction activity.

IGC’s cash and cash equivalents, along with restricted cash, was around $2.1 million for the period ending Dec. 31. The company’s stockholders’ equity was around $15.6 million as of Dec. 31, as compared with around $15.8 million for the period ending March 31, 2012.

The company’s total reported assets were around $21.4 million as of Dec. 31, compared with around $25.3 million as of March 30, 2012.

“We are now filling orders from our Chinese customers through our trading operations,” said Mukunda. “We expect to increase this activity as we expand our suppliers beyond India and China. In the future, the lower margin trading business is expected to transition to higher margins as we supply high-grade iron ore from our beneficiation plants. As reported in Bloomberg, in September 2012 China approved $158 billion for infrastructure as part of a stimulus plan that is expected to boost the demand for commodities. Iron ore prices have started to recover from their lows of $86 per ton in September 2012 to around $125 per ton. We have about $500 million of iron ore deposits, four mine sites, and three beneficiation plants. Our short term strategy is three-pronged: 1) Start supplying high grade iron ore from our beneficiation plants; 2) Expand the supply chain for raw materials beyond India and China; and 3) Actively look at consolidating more mines in the Inner Mongolia region that can be accretive to the company.”

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India Globalization Capital, Inc. (AMEX: IGC)

Monday, November 3rd, 2008

India Globalization Capital, Inc. (AMEX: IGC) is a company that was formed to acquire operating businesses located in India through merger, capital stock exchange, asset acquisition or other similar business combination. India Globalization Capital (IGC) has three main competencies which are: Highway and Heavy Construction, Mining and Quarrying, and Civil Construction and Engineering of high-temperature plants. IGC is a step ahead of their competition because they are the only Indian infrastructure company listed and trading in the United States. For further information, visit the company

RedChip Featured Company: India Globalization Capital, Inc. (IGC)

Tuesday, September 23rd, 2008

India Globalization Capital, Inc. (IGC) is a construction and engineering company based out of Bethesda, Maryland. IGC has controlling interest in two India-based businesses, Sricon Infrastructure Private Limited and Techni Bharathi Limited, which form its company infrastructure. Interestingly, IGC is the only company listed and traded in the US with an India-only infrastructure.

IGC was created to acquire operating businesses in India through mergers, capital stock exchanges, and asset acquisitions. The company focuses on three areas: civil construction and engineering of high-temperature cement and steel plants, mining and quarrying, and the construction of highways and other heavy construction.

IGC retains 63% of the equity of Sricon Infrastructure Private Limited, an infrastructure development company based in Nagpur, Maharashtra, India. At this time, Sricon operates 5 quarries from which it obtains construction aggregate. Sricon has participated in civil engineering construction projects since 1974 and now has the experience and qualifications to bid on contracts of up to $116 million.

IGC holds 77% of the equity of Techni Bharathi Limited, which is based out of Kerali, India. Techni is an engineering and construction company focused on developing the national infrastructure in India through the construction of roads, tunnels, canals, bridges, dams, airport taxiways, and hydro-power generation. Techri primarily works in the Indian states of Andhra Pradesh, Tamil Nadu, Karnataka, and Assam.

As India continues to be a major resource for out-sourcing services for U.S. companies, IGC will be there to support the construction of the country.

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India Globalization (IGC) Reports 100% Increase in FY2008 Revenues

Friday, July 25th, 2008

India Globalization Capital, Inc. (IGC:AMEX) is a US-based company developing infrastructure in India through its majority-owned subsidiaries, Sricon Infrastructure Private Ltd. and Techni Bharathi Ltd. On March 7, 2008 the company acquired 63% of Sricon Infrastructure and 77% of Techni Bharathi. The company, through its subsidiaries, has three core businesses: 1) highway and other heavy construction, 2) mining and quarrying, and 3) civil construction and engineering of high-temperature plants.

Recently, India Globalization announced a good set of results for the fiscal year ending March 31, 2008. The two subsidiaries combined reported revenues of $32.9 million and earnings of $4.4 million. The company’s CEO Ram Makunda said, “On a pro forma basis, our combined subsidiaries increased revenue by over 100% year-over-year with expanding margins.”

India, of course, is one of the BRIC countries with a booming economy and a huge population. It is well known that India is lagging behind China in building their infrastructure, and that India is sorely in need of infrastructure throughout the country. Since India Globalization is an infrastructure company in a country with tremendous demand for infrastructure, the demand for the company’s services is expected to grow nicely.

India Globalization’s order book does seem to be filling up. CEO Ram Makunda stated, “Based on our current order book, we expect record revenues and earnings and reaffirm our guidance for the fiscal year ending March 31, 2009 of revenue between $110 million to $125 million and earnings between $7 million to $9 million, before any one-time or non-cash charges.”

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