REG - iEnergizer Limited - Interim Results
14/11/2022 07:00
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RNS Number : 1945G iEnergizer Limited 14 November 2022
14(th) November 2022
iEnergizer Limited
("iEnergizer", the "Company" or the "Group")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022
iEnergizer, the technology services and media solutions leader for the digital
age, reports another record set of interim results for the six months ended 30
September 2022. The Board declares an increased interim dividend of 11.07p per
ordinary share, reflecting the increase in earnings and confidence in the
growth strategy and outlook for the Full Year.
Financial Highlights: Highly profitable revenue growth and sustained margin
improvements, achieved through securing new customer contracts and deepening
existing customer relationships along with continued and careful cost
management, which is further supported by the strengthing US$ against the INR.
● Revenue up 24.0% to $152.0m (H1 2022: $122.6m), Service Revenue up 23.0%
● EBITDA up by $10.0m to $54.4m (H1 2022: $44.4m), resulting in EBITDA margin of
36.0%
● Operating profit increased to $48.8m (H1 2022: $42.0m), resulting in operating
profit margin of 32.0%
● Profit before tax increased to $44.3m (H1 2022: $37.9m)
● Profit after tax increased to $41.2m (H1 2022: $34.3m)
● Gross Debt of $138.4m (31 March 2022: $139.7m)
● Declared Interim dividend of 11.07p per ordinary share ($24.0m) (H1 2022:
8.12p)
● Revenue up 24.0% to $152.0m (H1 2022: $122.6m), Service Revenue up 23.0%
Operational Highlights: Continued focus on higher margin work and success in
business growth from new and existing customers, innovating to deliver deeper
and broader propositions to service evolving customer needs through
technology-led solutions
· Business Process Outsource ("BPO"):
o Strong revenue growth in H1 2023 of 30.6% to $109.0m (H1 2022: $83.5m)
with an impressive EBITDA margin of 39% or $42.9m (H1 2022: $33.7m), which was
attributable to growth in business across different verticals, particularly
from International BPO customers.
o Focused on the new fast growth technology areas of content moderation and
data tagging for Artificial Intelligence ("AI") / Machine Learning ("ML")
applications, which are emerging as significant growth opportunities. The
Group plans to invest in promoting its new-age technology-driven digital
customer experience ("CX") service offerings.
o Robust outsourcing demand amidst inflationary pressures and BPO's outsized
exposure to fast-growing markets of Media & Entertainment, BFSI and
telecommunications, resulted in steady and strong revenue growth during H1
2023.
o Continued to add new customers and maintained growth in recurring revenue
streams from long-term customer relationships across all verticals, focussing
on faster growth, higher margin verticals, upselling additional more complex
services and deploying technology to drive productivity.
· Content Division:
o Achieved service revenue growth of 6.2% to $40.2m in H1 2023 (H1 2022:
$37.8m), as business from key clients, specifically from Financial Reporting
and Compliance services, increased. EBITDA margins maintained at around 28% at
$11.5m (H1 2022: $10.7m) owing to cost effectiveness and efficiencies
delivered through technology.
o Content Services' US based sales team continues to focus on cross-selling
and securing business leads from new and existing customers for fast growth
technology services, including:
● Digital Training and Education.
● SAAS services for propositions including Technology Tools such as SciPris and
PXE5.
● Providing immersive content for learners (specifically middle to high school),
partnering with EdTech groups with select revenue share models.
· New business initiatives:
o iEnergizer is well positioned to take advantage of industry tailwinds in
highly profitable verticals, due to: the scalability & breadth of its BPO
services; increasing adoption of fast-growing technology; the end-to-end
proposition of Content Services; and iEnergizer's highly trained workforce.
o Content Moderation is witnessing high growth on the back of rising digital
adoption. Rapid growth in online-first schools is driving demand for digital
content. Education and corporate sectors are increasing Learning &
Development spend. Major corporate businesses have identified the cost and
time savings of replacing classroom training with virtual training.
o Development of regulatory training services, targeting the Group's
existing customer base to promote compliance and e-Learning capabilities,
focussed on the American Disability Act and Web Content Accessibility
Guidelines.
o The US based sales team continues to focus on selling additional services,
specifically in data tagging for AI/ML applications, Content Moderation and
Web Content Accessibility Guidelines, to capture new market place
opportunities, while working on its strategic priorities: to enhance and grow
key accounts; to identify and win new business through new customers; as well
as to target existing accounts; and to cross-sell and generate leads for new
product launches.
· Cost management:
o Continues to manage increased proportion of division-specific higher
margin international work, particularly in non-voice-based processes
including: entertainment gaming support; BFSI; content technology; and
E-Learning.
o Achieved cost savings through effective use of resources and productivity
improvements, even as more employees moved to work from office, on a routine
basis during H1 2023.
· Interim Dividend:
o In-line with its progressive dividend policy, the Company is pleased to
announce an interim dividend of 11.07p with the dividend record date of 25
November 2022. This interim dividend reflects the Board's confidence in the
Group's business plan and growth prospects.
o The Company's ordinary shares are expected to go ex-dividend on 24
November 2022 and the interim dividend is expected to be paid on 21 December
2022.
· Outlook:
o The Board is delighted with the Group's strategic progress during H1 and
the delivery of further organic momentum and margin improvements. While we
recognise the macro uncertainty, we are optimistic for the remainder of FY23,
in particular due to ongoing inflationary pressures which continues to drive
multinationals to focus not only on cost reduction but also revenue
retention. Overall, new customer contract wins, reoccurring and repeat
nature of business and improved margins give the Board confidence in the
future outlook for the Company and underpin the expectations for FY23.
o Looking further ahead, with iEnergizer's solid foundations; its proven
strength in operational execution and healthy balance sheet; our
differentiated offerings, successful new sales initiatives, and substantial
opportunities for further growth identified, we expect a continued strong
momentum across the Group.
Marc Vassanelli, Chairman of iEnergizer, commented:
"We are delighted to report another strong performance by iEnergizer, with
highly profitable growth in revenue and profit margins, which exceeded our
expectations for H1 2023. This has been driven by ongoing innovations that
ensure iEnergizer continues to offer a market-leading proposition that enables
our dedicated colleagues to deepen existing customer relationships and attract
new customers for our service lines, combined with active cost management.
"Reflecting the Group's strong balance sheet and the cash generative nature of
the business, we are pleased to announce an interim dividend of 11.07p, in
continuation with our approach since H1 2020.
"With iEnergizer's solid foundations; its proven strength in operational
execution and healthy balance sheet; our differentiated offerings, successful
new sales initiatives, and substantial opportunities for further growth
identified, we expect a continued strong momentum across the Group."
-Ends-
iEnergizer Ltd. +44 (0)1481 242233
Chris de Putron
Mark De La Rue
FTI Consulting - Communications Adviser +44 (0)20 3727 1000
Alex Beagley
Eleanor Purdon
Strand Hanson - Nominated Adviser +44 (0)20 7409 3494
James Dance
James Bellman
Arden Partners - Joint Broker +44 (0)20 7614 5900
James Reed-Daunter
John Llewellyn-Lloyd
Canaccord Genuity Limited - Joint Broker +44 (0)20 7523 8000
Max Hartley, Thomas Diehl, Gerel Bastin (Corporate Finance)
Alex Aylen (Equity Sales)
iEnergizer Limited and its subsidiaries
Unaudited Condensed Consolidated Interim Financial Statements
Prepared in accordance with International Financial Reporting Standards (IFRS)
Six months ended 30 September 2022 and 2021
Unaudited Condensed Consolidated Statements of Financial Position
(All amounts in United States Dollars, unless otherwise stated)
Notes As at As at
30 September 2022 31 March 2022
Unaudited Audited
ASSETS
Non-current
Goodwill 5 102,238,817 102,246,868
Other intangible assets 6 13,010,136 13,074,401
Property, plant and equipment 7 14,242,452 10,123,815
Right-of-use assets 10 19,013,667 16,140,370
Long- term financial asset 5,924,288 4,971,036
Non-current tax assets 910,933 420,895
Deferred tax asset 3,234,307 3,313,563
Other non current assets 361,209 163,187
Non-current assets 158,935,809 150,454,135
Current
Trade and other receivables 38,915,134 40,835,944
Short- term financial assets 8 20,718,443 20,609,380
Cash and cash equivalents 46,760,342 56,326,421
Other current assets 8,199,287 5,705,929
Current assets 114,593,206 123,477,674
Total assets 273,529,015 273,931,809
EQUITY AND LIABILITIES
Equity
Share capital 3,776,175 3,776,175
Share compensation reserve 63,986 63,986
Additional paid in capital 15,451,809 15,451,809
Merger reserve (1,049,386) (1,049,386)
Other components of equity (24,277,305) (17,615,642)
Retained earnings 67,275,068 57,941,804
Total equity attributable to equity holders of the parent 61,240,347 58,568,746
Notes As at As at
30 September 2022 31 March 2022
Unaudited Audited
Liabilities
Non-current
Borrowings 128,404,225 129,895,411
Lease liabilities 15,611,470 13,697,079
Employee benefit obligations 5,456,632 5,092,678
Deferred tax liability 7,680,463 8,079,436
Non-current liabilities 157,152,790 156,764,604
Current
Trade and other payables 14,263,992 17,841,935
Employee benefit obligations 1,535,790 1,272,362
Current tax liabilities 40,807 844,679
Borrowings 10,013,434 9,763,047
Lease liabilities 4,232,887 3,026,616
Other current liabilities 25,048,968 25,849,820
Current liabilities 55,135,878 58,598,459
Total equity and liabilities 273,529,015 273,931,809
(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Income Statements
(All amounts in United States Dollars, unless otherwise stated)
Notes For the six months ended For the six months ended
30 September 2022 30 September 2021
Unaudited Unaudited
Income from operations
Revenue from services 149,181,696 121,284,962
Other operating income 2,845,012 1,271,458
152,026,708 122,556,420
Cost and expenses
Outsourced service cost 14,043,456 19,831,122
Employee benefits expense 71,028,302 48,194,012
Depreciation and amortisation 5,048,873 3,011,227
Other expenses 13,106,665 9,482,318
103,227,296 80,518,679
Operating profit 48,799,412 42,037,741
Finance income 498,874 453,702
Finance cost (5,015,600) (4,555,815)
Profit before tax 44,282,686 37,935,628
Income tax expense 3,130,663 3,612,806
Profit for the year attributable to equity holders of the parent 41,152,023 34,322,822
Earnings per share 9
Basic 0.22 0.18
Diluted 0.22 0.18
Par value of each share in GBP 0.01 0.01
Unaudited Condensed Consolidated Statements of Other Comprehensive Income
(All amounts in United States Dollars, unless otherwise stated)
For the six months ended For the six months ended
30 September 2022 30 September 2021
Unaudited Unaudited
Profit after tax for the year 41,152,023 34,322,822
Other comprehensive income
Items that will be reclassified subsequently to the consolidated income
statement
Exchange differences on translating foreign operations (6,661,663) (907,517)
Net other comprehensive income/(loss) that will be reclassified subsequently (6,661,663) (907,517)
to consolidated income statement
Items that will not be reclassified subsequently to income statement
Remeasurement of the net defined benefit liability - -
Income tax relating to items that will not be reclassified - -
Net other comprehensive income that will not be reclassified subsequently to - -
consolidated income statement
Other comprehensive income/(loss) for the year (6,661,663) (907,517)
Total comprehensive income attributable to equity holders 34,490,360 33,415,305
(The accompanying notes are an integral part of these Unaudited Condensed
Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Statements of Changes in Equity
(All amounts in United States Dollars, unless otherwise stated)
Share capital Additional paid in capital Share compensation reserve Merger reserve Other components of Retained earnings Total equity
equity
Foreign currency translation reserve Net defined benefit liability
Balance as at 1 April 2021 3,776,175 15,451,809 63,986 (1,049,386) (15,866,598) 729,662 26,482,815 29,588,463
Dividends - - - - - - (43,078,726) (43,078,726)
Transaction with owners - - - - - - (43,078,726) (43,078,726)
Profit for the year - - - - - - 74,537,715 74,537,715
Other comprehensive income - - - - (2,289,842) (188,864) - (2,478,706)
Total comprehensive income for the period - - - - (2,289,842) (188,864) 74,537,715 72,059,009
Balance as at 31 March 2022 3,776,175 15,451,809 63,986 (1,049,386) (18,156,440) 540,798 57,941,804 58,568,746
(The accompanying notes are an integral part of the Unaudited Condensed
Consolidated Interim Financial Statements)
Share capital Additional Paid in Capital Share compensation reserve Merger reserve Other components of equity Retained earnings Total equity
Foreign currency translation reserve Net defined
benefit
liability
Balance as at 01 April 2022 3,776,175 15,451,809 63,986 (1,049,386) (18,156,440) 540,798 57,941,804 58,568,746
Dividends - - - - - - (31,818,761) (31,818,761)
Transaction with owners - - - - - - (31,818,761) (31,818,761)
Profit for the year - - - - - - 41,152,023 41,152,023
Other comprehensive loss - - - - (6,661,663) - - (6,661,663)
Total comprehensive income for the period - - - - (6,661,663) - 41,152,023 34,490,361
Balance as at 30 September 2022 3,776,175 15,451,809 63,986 (1,049,386) (24,818,103) 540,798 67,275,068 61,240,346
(The accompanying notes are an integral part of the Unaudited Condensed
Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Statements of Cash Flows
(All amounts in United States Dollars, unless otherwise stated)
For the period For the six months ended
ended
30 September 2022 30 September 2021
(A) Cash flow from operating activities
Profit before tax 44,282,686 37,935,627
Adjustments
Depreciation and amortisation 5,048,873 3,011,227
Loss/(Profit) on disposal of property, plant and equipment (11,223) (8,258)
Trade receivables written-off/provision for doubtful debts 303,289 602,061
Sundry balances written back - (235)
Unrealised Foreign exchange loss/(gain) 519,790 (1,040,091)
Finance income (498,874) (453,702)
Finance cost 3,898,654 3,868,829
Interest cost on lease liability 856,131 412,167
Other borrowing cost at amortised cost 260,815 274,819
54,660,141 44,602,444
Changes in operating assets and liabilities
(Increase)/ Decrease in trade and other receivables 2,968,884 (3,941,087)
(Increase)/ Decrease in other assets (current) (4,342,387) (4,326,912)
Increase / (Decrease) Non-current liabilities, trade payables & other (9,444,194) 11,624,169
current liabilities
(Decrease)/ Increase in employee benefit obligations 1,353,139 293,709
Cash generated from operations 45,195,583 48,252,323
Income taxes paid (4,744,291) (3,201,599)
Net cash generated from operating activities 40,451,292 45,050,724
(B) Cash flow for investing activities
Payments for purchase of property plant and equipment (7,602,159) (997,864)
Investment in fixed deposit (Net) (1,165,664) (3,989,362)
Proceeds from disposal of property, plant & equipment 14,387 260,853
Payments for purchase of other intangible assets (7,407,647) (441,725)
Interest received 508,579 494,126
Net cash used in investing activities (15,652,504) (4,673,972)
For the period For the six months ended
ended
30 September 2022 30 September 2021
(C ) Cash flow from financing activities
Interest paid (3,898,654) (3,868,829)
Dividends paid to equity holders of the parent (31,818,761) (22,274,007)
Net Proceeds/(Repayments) from borrowings and lease liability 762,916 (19,046,499)
Net cash used in financing activities (34,954,499) (45,189,336)
Net increase/(decrease) in cash and cash equivalents (10,155,710) (4,812,584)
Cash and cash equivalents at the beginning of the year 56,326,421 51,378,899
Effect of exchange rate changes on cash 589,632 96,326
Cash and cash equivalents at the end of the year 46,760,342 46,662,641
Cash and cash equivalents comprise
Cash in hand 9,037 7,740
Balances with banks in current account 34,251,305 42,917,962
Remittance in transit - 3,736,939
Short term investments (fixed deposits with maturity less than 3 months) 12,500,000 -
46,760,342 46,662,641
RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES
The changes in the Group's liabilities arising from financing activities can
be classified as follows:
Long-term borrowings (including current portion of long-term borrowing) Lease Liabilities Total
1 April 2021 162,117,051 5,191,699 167,308,750
Cash-flows:
Repayment (22,999,794) (3,709,859) (26,709,653)
Non-cash:
Additional lease liability - 14,549,957 14,549,957
Interest on lease liability - 1,187,286 1,187,286
Other borrowing cost at amortized cost 541,201 - 541,201
Translation adjustment - (495,388) (495,388)
31 March 2022 139,658,458 16,723,695 156,382,153
1 April 2022 139,658,458 16,723,695 156,382,153
Cash-flows:
Net Repayment (1,501,615)* (4,090,152) (5,591,767)
Non-cash:
Additional lease liability - 6,354,683 6,354,683
Interest on lease liability - 856,131 856,131
Other borrowing cost at amortized cost 260,815 - 260,815
30 September 2022 138,417,659 19,844,357 158,262,016
* Includes borrowings for Computer Equipment worth US$ 2,347,629
(The accompanying notes are an integral part of the Unaudited Condensed
Consolidated Interim Financial Statements)
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(All amounts in United States Dollars, unless otherwise stated)
1. INTRODUCTION
iEnergizer Limited (the 'Company' or 'iEnergizer ') was incorporated in
Guernsey on 12 May 2010.
iEnergizer Limited is a 'Company limited by shares' and is domiciled in
Guernsey. The registered office of the Company is located at Mont Crevelt
House, Bulwer Avenue, St. Sampson, Guernsey, GY2 4 LH. iEnergizer was listed
on the Alternative Investment Market ('AIM') of London Stock Exchange on 14
September 2010.
iEnergizer through its subsidiaries iEnergizer Holdings Limited, iEnergizer IT
Services Private Limited, iEnergizer BPO Limited, iEnergizer BPO Inc,
iEnergizer Aptara Limited and Aptara Inc and subsidiaries. (together the
'Group') is engaged in the business of call centre operations, providing
business process outsource (BPO) and content delivery services, and back
office services to their customers, who are primarily based in the United
States of America and India, from its operating offices in Mauritius and
India.
2. GENERAL INFORMATION AND STATEMENT OF COMPLIANCE WITH IFRS
These Unaudited Condensed Consolidated Interim Financial Statements are for
the six months ended 30 September 2022 and 2021. They have been prepared in
accordance with IAS 34 Interim Financial Reporting as developed and published
by the International Accounting Standards Board ('IASB'), on a going concern
basis. They do not include all of the information required in annual financial
statements in accordance with IFRS, and should be read in conjunction with the
annual financial statements for the years ended 31 March 2022 and 2021.
The Unaudited Condensed Consolidated Interim Financial Statements have been
prepared and presented in United States Dollar (US$) which is the Company's
functional currency.
These Unaudited Condensed Consolidated Interim Financial Statements were
approved by the Board on
( ) 11(th) November 2022.
The Group has applied the same accounting policies in preparing these
unaudited management financial information as adopted in the most recent
annual audited financial information of the Group.
3. SIGNIFICANT ACCOUNTING POLICIES
The interim financial statements have been prepared in accordance with the
accounting policies adopted in the Group's most recent annual financial
statements for the years ended 31 March 2022 and 2021.
4. SIGNIFICANT MANAGEMENT JUDGEMENT IN APPLYING ACCOUNTING POLICIES AND ESTIMATION UNCERTAINTY
When preparing the Unaudited Condensed Consolidated Interim Financial
Statements, management undertakes a number of judgements, estimates and
assumptions about recognition and measurement of assets, liabilities, income
and expenses. The actual results may differ from the judgements, estimates and
assumptions made by management, and will seldom equal the estimated results.
The judgements, estimates and assumptions applied in the Unaudited Condensed
Consolidated Interim Financial Statements, including the key sources of
estimation uncertainty were the same as those applied in the Group's last
audited financial statements for the year ended 31 March 2022.
5. GOODWILL
The net carrying amount of goodwill can be analysed as follows:
Particulars Amount
Balance as at 1 April 2021 102,250,365
Impairment loss recognized -
Translation adjustment (3,497)
Balance as at 31 March 2022 102,246,868
Particulars Amount
Balance as at 01 April 2022 102,246,868
Translation adjustment (8,051)
Balance as at 30 September 2022 102,238,817
6. OTHER INTANGIBLE ASSETS
The Intangible assets comprise of computer software, customer contracts.
Particulars Customer contracts Computer software Patent Trade mark Intangibles under development Total
Cost
Balance as at 1 April 2021 24,105,769 4,969,336 100,000 12,000,000 132,490 41,307,595
Additions - 1,002,211 - - 306,487 1,308,698
Disposals - - - (132,491) (132,491)
-
Translation adjustment (3,911) (142,764) - - (6,486) (153,161)
Balance as at 31 March 2022 24,101,858 5,828,783 100,000 12,000,000 300,000 42,330,641
Accumulated amortisation
Balance as at 1 April 2021 24,105,769 4,496,109 - - - 28,601,878
Amortisation for the year - 798,314 - - - 798,314
Disposals - - - - - -
Translation adjustment (3,911) (140,041) - - - (143,952)
Balance as at 31 March 2022 24,101,858 5,154,382 - - - 29,256,240
Impairment
Balance as at 1 April 2021 - - - 132,490 132,490
-
Impairment for the year - - - - - -
Disposals - - - - (132,490) (132,490)
Translation and other adjustment - - - - - -
Balance as at 31 March 2022 - - - - - -
Carrying values as at 31 March 2022 - 674,401 100,000 12,000,000 300,000 13,074,401
Particulars Customer contracts Computer software Patent Trade mark Intangibles under development Total
Cost
Balance as at 01 April 2022 24,101,858 5,828,783 100,000 12,000,000 42,330,641
300,000
Additions - 798,084 - - 519,644
(278,440)
Disposals - - - - - -
Translation adjustment (9,005) (395,295) - - (425,860)
(21,560)
Balance as at 30 September 2022 24,092,853 6,231,572 100,000 12,000,000 - 42,424,425
Accumulated amortisation
Balance as at 01 April 2022 24,101,858 5,154,382 - - 29,556,240
300,000
Amortisation/impairment for the period - 530,378 - - - 530,378
Disposals - - - - - -
Translation and other adjustment (9,005) (363,324) - - (672,329)
(300,000)
Balance as at 30 September 2022 24,092,853 5,321,436 - - - 29,414,289
Carrying values as at 30 September 2022 - 910,136 100,000 12,000,000 - 13,010,136
7. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment comprise of the following:
Particulars Computer and data equipment Office Equipment Furniture and fixtures Air conditioner and generator Vehicle Leasehold improvements Plant and machinery Capital work in progress Total
Cost
Balance as at 1 April 2021 12,105,915 1,148,075 1,414,469 950,473 404,305 4,826,064 2,416,267 214,307 23,479,875
Additions 3,266,111 157,151 278,515 1,247,713 - 2,268,521 114,887 - 7,332,898
Disposals (Net)/transfer (97,133) (472) - - (5,961) - (41,489) (214,307) (359,362)
Translation adjustment (381,044) (32,341) (39,396) (29,198) (12,239) (143,916) (66,062) - (704,196)
Balance as at 31 March 2022 14,893,849 1,272,413 1,653,588 2,168,988 386,105 6,950,669 2,423,603 - 29,749,215
Accumulated depreciation
Balance as at 1 April 2021 8,588,637 879,485 1,139,616 469,188 94,194 3,646,017 2,054,297 - 16,871,434
Depreciation for the period 2,373,226 100,811 84,675 150,839 36,025 561,923 120,456 - 3,427,955
Disposals (Net) (95,470) (472) - - (5,460) - (33,030) - (134,432)
Translation adjustment (288,020) (25,331) (32,271) (16,417) (3,381) (116,878) (57,259) - (539,557)
Balance as at 31 March 2022 10,578,373 954,493 1,192,020 603,610 121,378 4,091,062 2,084,464 - 19,625,400
Carrying values as at 31 March 2022 4,315,476 317,920 461,568 1,565,378 264,727 2,859,607 339,139 - 10,123,815
Particulars Computer and data equipment Office Equipment Furniture and fixtures Air conditioner and generator Vehicle Leasehold improvements Plant and machinery Capital work in progress Total
Cost
Balance as at 01 April 2022 14,893,849 1,272,413 1,653,588 2,168,988 386,105 2,423,603 - 29,749,215
6,950,669
Additions 4,602,920 678,742 37,504 60,991 - 7,175,065
77,858 280,892 1,436,158
Disposals/transfer (Net) (909,283) - - (11,576) - (920,859)
- - -
Translation and other adjustment (1,141,139) (87,882) (115,042) (156,771) (28,875) (157,374) - (2,189,572)
(502,490)
Balance as at 30 September 2022 17,446,347 1,262,389 1,819,438 2,690,959 394,734 2,315,644 - 33,813,848
7,884,337
Accumulated depreciation
Balance as at 01 April 2022 10,578,373 1,192,020 603,610 121,378 2,084,464 - 19,625,400
954,493 4,091,062
Depreciation for the period 1,301,755 107,430 34,580 55,958 - 2,271,292
41,847 300,223 429,499
Disposals (Net) (908,909) - - (8,786) - (917,695)
- - -
Translation and other adjustments (759,259) (63,470) (88,573) (47,401) (10,018) (135,220) - (1,407,601)
(303,660)
Balance as at 30 September 2022 10,211,960 663,639 145,940 1,996,416 - 19,571,396
932,870 1,403,670 4,216,901
Carrying values as at 30 September 2022 7,234,387 2,027,320 248,794 319,228 - 14,242,452
329,519 415,768 3,667,436
8. SHORT TERM FINANCIAL ASSETS
Particulars 30 September 2022 31 March 2022
Security deposits 14,713 265,921
Restricted cash 6,523,099 7,645,707
Short term investments (fixed deposits with maturity less than 12 months) 14,048,810 12,327,421
Derivative financial instruments - 206,382
Due from officers and employees 71,315 93,738
Others 60,506 70,211
20,718,443 20,609,380
Short term investments comprise of investment through banks in deposits
denominated in various currency units bearing fixed rate of interest.
9. EARNINGS PER SHARE
The calculation of the basic earnings per share is based on the profits
attributable to ordinary shareholders divided by the weighted average number
of shares in issue during the period.
Calculation of basic and diluted profit per share for the period ended 30
September 2022 is as follows:
Basic earnings per share
Particulars 30 September 2022 30 September 2021
Profit attributable to shareholders 41,152,023 34,322,822
Weighted average numbers shares outstanding 190,130,008 190,130,008
Basic earnings per share (US$) 0.22 0.18
Diluted earnings per share
Particulars 30 September 2022 30 September 2021
Profit attributable to shareholders 41,152,023 34,322,822
Weighted average numbers shares outstanding 190,130,008 190,130,008
Diluted earnings per share (US$) 0.22 0.18
10. LEASES
(a) Lease liabilities are presented in the statement of financial position as
follows:
Particulars 30 September 2022 31 March 2022 202020
Current 4,232,887 3,026,616
Non-current 15,611,470 13,697,079
19,844,357 16,723,695
(b) The following are amounts recognised in consolidated income statement:
Particulars 30 September 2022 31 March 2022
Depreciation expenses of right-of-use 2,247,203 2,671,352
Interest Expense on the Lease Liability
Interest expense on lease liability 856,131 273,405
Rent expenses* 2,308 11,202
Common area maintenance expenses 63,479 114,162
Total 3,169,121 3,070,121
*Rent expense in respect of Short Term Lease
(c) Right to use of assets as at 31 March 2022:
Particulars Computers Buildings Total
Gross block
Balance as at 1 April 2021 - 7,517,462 7,517,462
Additions during the year 2,903,363 11,646,594 14,549,957
Disposal - (326,888) (326,888)
Translation adjustment - (377,245) (377,245)
Gross block as at 31 March 2022 2,903,363 18,459,923 21,363,286
Accumulated depreciation
Balance as at 1 April 2021 - 2,797,791 2,797,791
Depreciation for the period 241,239 2,430,113 2,671,352
Disposal - (149,824) (149,824)
Translation adjustment (3,539) (92,864) (96,403)
Accumulated depreciation as at 31 March 2022 237,700 4,985,216 5,222,916
Net block as at 31 March 2022 2,665,663 13,474,707 16,140,370
Right-of-use of assets as at 30 September 2022:
Particulars Computers Buildings Total
Gross block
Balance as at 1 April 2022 2,903,363 18,459,923 21,363,286
Additions during the year 2,008,029 4,346,654 6,354,683
Disposal - - -
Translation adjustment - (1,609,218) (1,609,218)
Gross block as at 30 September 2022 4,911,392 21,197,359 26,108,751
Accumulated depreciation
Balance as at 1 April 2022 237,700 4,985,216 5,222,916
Depreciation for the period 350,647 1,896,557 2,247,203
Disposal - - -
Translation adjustment - (375,035) (375,035)
Accumulated depreciation as at 588,347 6,506,738 7,095,084
30 September 2022
Net block as at 30 September 2022 4,323,045 14,690,621 19,013,667
(d) The table below describes the nature of the Group's leasing activities by
type of right-of-use asset
recognised in the consolidated statement of financial position:
31 March 2022
Right-of-use asset Number of right-of-use assets leased Range of remaining term Average remaining lease term Number of leases with extension options Number of leases with options to purchase Number of leases with termination options
(in years)
(in years)
Buildings 17 0.25 to 8.09 years 2.68 years 10 - 14
Computers 3580 4.42 to 4.92 years 4.64 years - 6 -
30 September 2022
Right-of-use asset Number of right-of-use assets leased Range of remaining term Average remaining lease term Number of leases with extension options Number of leases with options to purchase Number of leases with termination options
(in years)
(in years)
Buildings 21 0.58 to 7.59 years 2.97 years 12 - 18
Computers 3806 3.92 to 4.58 years 4.20 years - 7 -
(e) Maturity of lease liabilities
The future lease payments at 31 March 2022 were as follows:
31 March 2022 Lease payments due
Within 1 year 1-2 years 2-3 years 3-4 years 4-5 years After 5 years Total
Lease payments 4,426,970 3,953,827 3,463,111 2,649,128 2,210,382 5,433,631 22,137,049
Finance charges 1,400,354 1,143,997 898,013 700,905 533,179 736,906 5,413,354
Net present values 3,026,616 2,809,830 2,565,098 1,948,223 1,677,203 4,696,725 16,723,695
30 September 2022 Lease payments due
Within 1 year 1-2 years 2-3 years 3-4 years 4-5 years After 5 years Total
Lease payments 5,883,794 5,404,334 4,208,165 3,682,600 1,924,738 4,208,724 25,312,355
Finance charges 1,650,907 1,278,572 921,864 693,638 434,608 488,409 5,467,998
Net present values 4,232,887 4,125,762 3,286,301 2,988,962 1,490,130 3,720,315 19,844,357
(f) Total cash outflow for leases for the year ended 30 September 2022 was US$
4,090,152 (31 March 2022 was US$ 3,709,859)
11. RELATED PARTY TRANSACTIONS
The related parties for each of the entities in the Group have been summarised
in the table below:
Nature of the relationship Related Party's Name
I. Ultimate controlling party Mr. Anil Aggarwal
II. Entities directly or indirectly through one or more intermediaries,
control, are controlled by, or are under common control with, the reported
enterprises EICR (Cyprus) Limited (Parent of iEnergizer Limited)
III. Key management personnel ("KMP") and significant shareholders Mr. Anil Aggarwal (Ultimate Shareholder, EICR Limited)
Mr. Chris de Putron (Director, iEnergizer Limited)
Mr. Mark De La Rue (Director, iEnergizer Limited)
Mr. Marc Vassanelli (Director, iEnergizer Limited)
Mr. Ashish Madan (Director, iEnergizer Limited)
Disclosure of transactions between the Group and related parties and the
outstanding balances is as under:
Transactions with KMP and relative of KMP
Particulars 30 September 2022 30 September 2021
Transactions during the period ended
Short term employee benefits
Remuneration paid to directors
Chris de Putron 5,821 6,912
Mark De La Rue 5,821 6,912
Marc Vassanelli 20,747 20,736
Ashish Madan 51,793 -
Balances at the end of
Total remuneration payable 13,921 189,509
12. SEGMENT REPORTING
Management currently identifies the Group's two service lines business process
outsource and content delivery as operating segments on the basis of
operations. These operating segments are monitored and operating and strategic
decisions are made on the basis of operating segment results.
The Chief Operating Decision Maker ("CODM") evaluates the Group's performance
and allocates resources based on an analysis of various performance indicators
by reportable segments. The Group's reportable segments are as follows:
1. Business Process Outsource
2. Content delivery
The measurement of each segment's revenues, expenses and assets is consistent
with the accounting policies that are used in preparation of the Unaudited
Condensed Consolidated Interim Financial Statements. Segment information can
be analysed as follows for the reporting periods under review:
30 September 2022
Business Process Outsource Content delivery Total
Revenue from external customers 108,985,103 40,196,593 149,181,696
Other income (including realised foreign exchange gain) 839,794 1,123,552 1,963,346
Segment revenue 109,824,897 41,320,145 151,145,042
Cost of outsourced Services 7,799,083 6,244,373 14,043,456
Employee benefit expense 49,402,300 21,626,002 71,028,302
Other expenses 9,760,539 1,944,670 11,705,209
Earning before interest, tax, depreciation and amortisation 42,862,975 11,505,100 54,368,075
Rent adjustment as per IFRS 16 2,102,860 676,214 2,779,074
Earning before interest, tax, depreciation and amortisation (before rent 40,760,115 10,828,886 51,589,001
adjustment)
Unrealized Foreign Exchange gain/(loss) (1,218,165) 698,375 (519,790)
Depreciation and amortisation (3,675,976) (1,372,897) (5,048,873)
Rent adjustment as per IFRS 16 2,102,860 676,214 2,779,074
Segment operating profit 37,968,834 10,830,578 48,799,412
Other Income/expense :
Finance income 261,591 237,283 498,874
Finance costs (3,315,468) (1,700,132) (5,015,600)
Profit before tax 34,914,957 9,367,729 44,282,685
Income tax expense (1,428,328) (1,702,335) (3,130,663)
Profit after tax 33,486,629 7,665,394 41,152,022
Segment assets 107,291,679 166,237,336 273,529,014
Segment liabilities 187,421,058 24,867,610 212,288,668
Capital expenditure 11,774,814 2,274,578 14,049,392*
*Includes "Right of Use" Assets added and recorded worth $6,354,683.
30 September 2021
Business Process Outsource Content delivery Total
Revenue from external customers 83,455,893 37,829,069 121,284,962
Other income (including realised foreign exchange gain) 429,851 184,825 614,676
Segment revenue 83,885,744 38,013,894 121,899,638
Cost of outsourced Services 15,079,693 4,751,429 19,831,122
Employee benefit expense 27,730,594 20,463,418 48,194,012
Other expenses 7,382,280 2,100,038 9,482,318
Earning before interest, tax, depreciation and amortisation 33,693,177 10,699,009 44,392,186
Rent adjustment as per IFRS 16 740,113 623,451 1,363,564
Earning before interest, tax, depreciation and amortisation (before rent 32,953,064 10,075,558 43,028,622
adjustment)
Unrealized Foreign Exchange gain/(loss) 183,355 473,427 656,782
Depreciation and amortisation (1,758,797) (1,252,430) (3,011,227)
Rent adjustment as per IFRS 16 740,113 623,451 1,363,564
Segment operating profit 32,117,735 9,920,006 42,037,741
Other Income/expense :
Finance income 291,848 161,854 453,702
Finance costs (2,707,467) (1,848,348) (4,555,815)
Profit before tax 29,702,116 8,233,512 37,935,628
Income tax expense (2,042,704) (1,570,102) (3,612,806)
Profit after tax 27,659,412 6,663,410 34,322,822
Segment assets 86,219,900 168,836,340 255,056,240
Segment liabilities 180,567,985 33,758,495 214,326,480
Capital expenditure 9,218,733 1,329,033 10,547,766*
*Includes "Right of Use" Assets added and recorded worth $8,971,723.
Revenue from the following customer's amounts to more than 10% of consolidated
revenue during the period presented.
30 September 2022
Revenue from Segment Amount
Customer 1 Business Process Outsource 32,021,458
30 September 2021
Revenue from Segment Amount
Customer 1 Business Process Outsource 23,630,750
13. FINANCIAL ASSETS AND LIABILITIES
Fair value of carrying amounts of assets and liabilities presented in the
statement of financial position relates to the following categories of assets
and liabilities:
Financial assets 30 September 2022 31 March 2022
Non-current assets
Financial assets measured at amortized cost
Security deposits 1,282,091 895,722
Restricted cash 1,921,417 2,007,253
Fixed deposits with banks 2,720,780 2,068,061
Current assets
Financial assets measured at amortized cost
Trade and other receivables 38,915,134 40,835,944
Cash and cash equivalents 46,760,342 56,326,421
Restricted cash 6,523,099 7,645,707
Security deposits 14,713 265,921
Fixed deposits with banks 14,048,810 12,327,421
Due from officers and employees 71,315 93,738
Interest accrued on fixed deposit 60,506 70,211
Fair value through profit and loss:
Derivative financial instruments - 206,382
112,318,207 122,742,781
Financial liabilities 30 September 2022 31 March 2022
Non-current liabilities
Financial liabilities measured at amortized cost:
Borrowings 128,404,225 129,895,411
Lease liabilities 15,611,470 13,697,079
Current liabilities
Financial liabilities measured at amortized cost:
Trade and other payables 14,263,992 17,841,935
Borrowings 10,013,434 9,763,047
Lease liabilities 4,232,887 3,026,616
172,526,008 174,224,088
These non-current financial assets and liabilities, current financial assets
and liabilities have been recorded at their respective carrying amounts as the
management considers the fair values to be not materially different from their
carrying amounts recognised in the statement of financial positions as these
are expected to realise within one year from the reporting dates. Derivative
financial instruments, recorded at fair value through profit and loss, are
recorded at their respective fair values on the reporting dates.
14. FAIR VALUE HIERARCHY
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on
observable market data (unobservable inputs).
No financial assets/liabilities have been valued using level 1 and 3 fair
value measurements.
The following table presents fair value hierarchy of assets and liabilities
measured at fair value on a recurring basis:
30 September 2022 Total Fair value measurements at reporting date using
Level 2
Liabilities (Notional amount)
Derivative instruments
Forward contracts (currency - US$/INR) 47,500,000 (1,882,900)
31 March 2022 Total Fair value measurements at reporting date using
Level 2
Liabilities (Notional amount)
Derivative instruments
Forward contracts (currency - US$/INR) 61,700,000 183,383
15. COMMITMENT AND CONTINGENCIES
As at 30 September 2022 and 31 March 2022, the Group had a capital commitment
of US$ 1,889,372 and US$ 582,089 respectively for acquisition of property,
plant and equipment.
The contingent liability in respect of claims filed by erstwhile employees
against the group companies amounts to US$ 119,613 and US$ 116,725 as on 30
September 2022 and 31 March 2022 respectively and in respect of interest on
VAT amounts to US$ 8,586 as on 30 September 2022 (US$ 9,251 as on 31 March
2022).
Guarantees: As at 30 September 2022 and 31 March 2022, guarantees provided by
banks on behalf of the group companies to the revenue authorities and certain
other agencies, amount to approximately US$ 22,450 and US$ 36,280
respectively.
16. ESTIMATES
The preparation of interim financial statements require management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates.
In preparing these Unaudited Condensed Consolidated Interim Financial
Statements, the significant judgments made by the management in applying the
Group's accounting policies and the key sources of estimation uncertainty were
the same as those that applied to the consolidated financial statements as at
and for the years ended 31 March 2022 and 2021.
17. FINANCIAL RISK MANAGEMENT
The Group's financial risk management objectives and policies are consistent
with those disclosed in the consolidated financial statements as at and for
the years ended 31 March 2022 and 2021.
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