REG - Subex Limited - 3rd Quarter Results <Origin Href="QuoteRef">SUBX.NS</Origin>

SubexAnnouncement

11/02/2016 12:20

RNS Number : 8092O
Subex Limited
11 February 2016
 February 11, 2016
To
TheLondon Stock Exchange
10PaternosterSquare
London
EC4M 7LS 
DearSirs,
Sub: Subex Limited 'The Company'-OutcomeoftheBoardMeeting heldonFebruary 10, 2016
Please be informed that the agenda item summarized hereunder was discussed and approved at the Board Meeting held on February 10, 2016
 Approval of the unaudited standalone and consolidated Financial Results of the Company for the quarter and nine months ended December 31, 2015. 
Please find hereto enclosed consolidatedFinancialResultsoftheCompany. 
We requestyou to takethe aforesaid notificationon record.
Yours faithfully
For and on behalfofSubexLimited
Ganesh K V
Chief Financial Officer, Global Head -Legal and CompanySecretary

SUBEXLIMITED
Registered office:RMZEcoworld, Outer RingRoad, Devarabisanahalli, Bangalore-560 037
Statement of ConsolidatedUnauditedResultsforthequarterandninemonthsendedDecember31, 2015
PART I ( Rs.inLakhs unlessotherwisestated)

Particulars
Consolidated
3 monthsended
December31,
Preceding 3 months endedSeptember30,
Corresponding 3 monthsended December31,
Yeartodatefiguresfortheninemonths endedDecember31,
Previousyear ended
March31,
2015
2015
2014
2015
2014
2015
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Audited
1
2 (a) (b) (c) (d) (e)
3
4
5
6 (a) (b) (c)
7
8
9
10
11
12 (a)
(b)
Incomefromoperations
Netsales/incomefromoperations
8,083
7,954
9,199
23,388
24,767
35,983
Total incomefromoperations(net)
8,083
7,954
9,199
23,388
24,767
35,983
Expenses
Costof hardware, software and support charges
Employeebenefitsexpense and sub-contract charges(refer note6) Other expenditure(refer note7)
Depreciation and amortisation expense
Exchangefluctuation (gain)/loss(net) (refer note3 (d)(ii))
84
4,127
2,115
110 (891)
77
4,287
1,883
105 (228)
107
4,452
2,111
86
48
180
12,948
5,758
317
57
509
12,937
6,033
309
438
1,664
16,376
8,685
402
1,250
Total expenses
5,545
6,124
6,804
19,260
20,226
28,377







Profit fromoperationsbeforeother income, finance costsandtax
(1-2)
2,538
1,830
2,395
4,128
4,541
7,606
Other income
14
11
25
58
37
97
Profit fromordinaryactivitiesbeforefinance costsandtax(3+4)
2,552
1,841
2,420
4,186
4,578
7,703
Finance costs
Intereston FCCBs(net) (refer note3(d)(i) &3(e)) Intereston term loan
Other finance costs
(4,260)
245
375
(924)
244
324
818
220
478
(5,659)
720
1,011
2,513
631
1,467
3,352
850
1,902
Totalfinance costs
(3,640)
(356)
1,516
(3,928)
4,611
6,104







Profit/(Loss) fromordinaryactivitiesafterfinance costsbefore
tax(5-6)
6,192
2,197
904
8,114
(33)
1,599
Tax expense(net)
254
637
230
1,091
391
578
Net Profit/(Loss) fortheperiod/year(7-8)
5,938
1,560
674
7,023
(424)
1,021
Paid up share capital
-Equity(facevalueof Rs.10/-)
Reservesexcludingrevaluation reservesasper balancesheetof previousaccountingyear
Earnings/(Loss) per share(of Rs.10/-each) (not annualised in caseof the interimperiods):
- Basic
-Diluted
42,175
-
1.82
1.31
26,402
-
0.73
0.59
17,476
-
0.40
0.40
42,175
-
2.86
2.06
17,476
-
(0.25) (0.25)
18,292
2,612
0.59
0.59

1
2
3
Notes:
The aboveresultshavebeen reviewed bytheAuditCommittee and approved bytheBoard of Directorsin their meetingheld on February10, 2016.
TheFinancialResultsof Subex Limited (StandaloneInformation): ( Rs.inLakhs)
Particulars
3 monthsended
December31,
Preceding 3 months endedSeptember30,
Corresponding 3
monthsended
December31,
Yeartodatefiguresfortheninemonths endedDecember31,
Previousyear ended
March31,
2015
2015
2014
2015
2014
2015

Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Audited
Netsales/incomefromoperations
7,634
7,274
7,845
21,338
21,041
30,567
Profit/(Loss) fromordinaryactivitiesbefore tax
6,121
1,596
(445)
8,164
(2,956)
(2,685)
Profit/(Loss) fromordinaryactivitiesafter tax
5,952
1,298
(512)
7,647
(3,061)
(2,840)
(a)Pursuantto theapprovalof theholdersof"US$180Million2%convertibleunsecuredbonds",[ofwhichUS$39Millionwas outstanding("FCCBsI")]and"US$98.7Million5%convertibleunsecuredbonds", [ofwhichUS$54.8Millionwasoutstanding("FCCBsII")],attheirrespectivemeetingsheldonJuly 05,2012andexchangeoffersreceivedundertheexchangeoffermemorandumdatedJune13,2012,holdersof US$38MillionoutofFCCBsI andUS$53.4MillionoutofFCCBsII offeredtheirbondsforexchange.Consequently,securedbondswithafacevalueofUS$127.721Million("FCCBsIII")wereissuedwith maturitydateofJuly07,2017,havinganinterestrateof5.70%p.a.payablesemi-annually,anexchangerateforconversionof Rs.56.0545/US$andanequityconversionpriceof Rs.22.79perequityshare.In accordancewiththetermsofFCCBsIII,principalamountofUS$36.321MillionwasmandatorilyconvertedintoequitysharesattheaforesaidconversionpriceonJuly 07,2012.Further,pursuanttotheapprovalof theReserveBankofIndiadatedApril27,2012andrequisiteapprovalsofthebondholders,thematurityperiodoftheun-exchangedportionofFCCBsIofUS$1MillionandFCCBsII ofUS$1.4Millionstands extended to March 09, 2017, with itsother termsand conditionsremainingunchanged.
(b)TheBoardinitsmeetingheldonMay14,2015hasapprovedtheresetofconversionpriceoftheFCCBsIII,whichareconvertibleintoequitysharesoftheCompany,from Rs.22.79to Rs.13.00perequityshare. Subsequently,theresetoftheconversionpricehasbeenapprovedbytheshareholdersintheannualgeneralmeetingheldonJune19,2015andthebondholdersintheirmeetingheldonAugust5,2015.TheBoard in itsmeetingheld on August26, 2015 hasapproved August26, 2015 asthe effectivedateof resetof conversion priceof Rs.13 per share.
Asaresultoftheaforesaidresetofconversionprice,thesaidbondswithoutstandingfacevalueofUS$23.35MillionasatDecember31,2015wouldpotentiallybeconvertedinto100,682,506equity sharesatan exchangerateofRs.56.0545/US$withaconversionpriceofRs.13perequityshare.During themonthofDecember2015andJanuary2016,conversionrequestsfromthebondholdersofFCCBsIIIamounting toUS$9 millionandUS$7.8Millionrespectivelyhavebeenreceivedby theCompany,whicharependingtobeapprovedbytheBoardofDirectors,whichwouldpotentiallybeconvertedinto72,439,662equitysharesatan exchangerateof Rs.56.0545/US$ with a conversion priceof Rs.13 per equityshare.
(c) (i) Of theoutstandingFCCBsIIIof US$ 91.40 Million asof July2012, US$ 68.05 Million havebeen converted till thequarter and nine monthsended December 31, 2015.
Financialyear/period
FCCBsconverted
US$ Million
Conversionrateper
US$
Conversionprice
No. of equityshares

2012-13
3.25
Rs. 56.0545
Rs. 22.79
7,993,931
2014-15
6.62
Rs. 56.0545
Rs. 22.79
16,282,613
Quarter ended June30, 2015
6.50
Rs. 56.0545
Rs. 22.79
15,987,461
Quarter ended September 30, 2015
15.10
Rs. 56.0545
Rs. 22.79
65,109,454
Quarter ended December 31, 2015
36.58
Rs. 56.0545
Rs. 22.79
157,728,731
(ii) Thefacevalueof FCCBsoutstandingason December 31, 2015 isasfollows:
Particulars
US$ Million
Rs. in Lakhs

FCCBsI
1.00
662
FCCBsII
1.40
926
FCCBsIII
23.35
15,447
Total
25.75
17,035


4
5
6
7
(d)(i)InterestonFCCBsisnetofreversalofinterestaccruedbutnotdueinrelationtoFCCBsIIIwhichhasbeenwrittenbackasthesameisconsiderednolongerpayableduetotheconversionofFCCBsIIIinto
equitysharesof theCompany. Such reversalsfor thequarter and comparativeperiodsare asdetailed below:
Particulars
3 monthsended
December31,
Preceding 3 months endedSeptember30,
Corresponding 3
monthsended
December31,
Yeartodatefiguresfortheninemonths endedDecember31,
Previousyear ended
March31,
2015
2015
2014
2015
2014
2015
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Audited
FCCBsconverted (US$ million)
36.58
15.10
2.30
58.18
3.30
6.62
Reversalof interest accrued butnotdue(Rs.in lakhs)
(4,744)
(1,715)
-
(7,642)
-
-
(ii)Exchangefluctuationgain/lossisnetofforeignexchangegainonconversionofFCCBsIII atanexchangerateof Rs.56.0545/US$asagainsttheclosingrateonthedateofconversion(intherangeof Rs.60 - Rs.66), andamortisationofForeignCurrency MonetaryItemTranslationDifferenceAccount('FCMITD')arisingoutofconversionofFCCBsIIIintoequity sharesoftheCompany.Suchnetimpactforthequarterand comparativeperiodsare asdetailed below:
Particulars
3 monthsended
December31,
Preceding 3 months endedSeptember30,
Corresponding 3
monthsended
December31,
Yeartodatefiguresfortheninemonths endedDecember31,
Previousyear ended
March31,
2015
2015
2014
2015
2014
2015
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Audited
FCCBsconverted (US$ million)
36.58
15.10
2.30
58.18
3.30
6.62
Foreign exchange(gain)/losson conversion (net) (Rs.in lakhs)
(876)
(235)
32
(1,400)
58
40
(e)TheFCCBbondholdersintheirrespectivemeetingshaveapprovedthedeferralofaggregateinterestofUS$4.71Million( Rs. 3,115.96Lakhs)inrespectofoutstandingFCCBsIIIofUSD23.35Millionforthe period July6, 2012 to January5, 2016 tillredemption dateof thebonds, beingJuly07, 2017. Accordingly, intereston FCCBsIIIincluded under finance costsin the aboveresultsisduefor paymenton July07, 2017.
During thefinancialyearendedMarch31,2015,theCompany hadassessedthecarryingvalueofgoodwillarisingfromitsinvestmentinitssubsidiaryviz.SubexAmericasInc.,amounting to Rs.18,606Lakhs.Based onthemanagement'sassessment,therewasnoimpairmentofsuchgoodwilltaking intoaccountthefutureoperationalplansandprojectedcashflowsaspreparedbythemanagementand accordingly,no impairment losswasrequiredtoberecognised.Themanagementcontinuestobelievethat,basedonitsassessment,thereisnoimpairmentofsuchgoodwillasatDecember31,2015.Thisisan'EmphasisofMatter'in the Limited ReviewReportof theStatutoryAuditorson theUnaudited Consolidated Results.
TheCompanyhasonlysinglebusiness segmentwith respect to softwareproductsand related servicesand hencehasnot made anyadditionalsegmentdisclosures.
Employeebenefits expenseandsub-contractchargesfor thequartersendedDecember31, 2015, September30, 2015 and December31, 2014 arenetof reversalofprovision nolongerrequired,in respectof employee incentives,amounting to Rs.420Lakhs, Rs.384Lakhs,and Rs.Nil,respectivelyandthatfortheninemonthsendedDecember31,2015,December31,2014andtheyear endedMarch31,2015 amounting to Rs.873 Lakhs,
Rs. 287Lakhsand Rs. 1,191 Lakhs, respectively.
OtherexpenditureforthequarterendedDecember31,2015,September30,2015andDecember31,2014isnetofreversalofprovisionnolongerrequired,inrespectofcommissiononsales,amountingto Rs.146
Lakhs, Rs.Nil and Rs.Nil, respectivelyand thatfor thenine monthsended December 31, 2015, December 31, 2014 and theyear ended March 31, 2015 amountingtoRs.146 Lakhs, Rs.Nil and Rs.Nil, respectively.

8
9
10
PursuanttotheapprovaloftheBoardofDirectors,theCompanyhasdiscontinuedtheoperationsoftwoofitssubsidiarieswitheffectfromApril01,2013.Thedetailsof unaudited/auditedresults ofthediscontinued businessconsolidated in the aboveresultsare asfollows:
Particulars
3 monthsended
December31,
Preceding 3 months endedSeptember30,
Corresponding 3
monthsended
December31,
Yeartodatefiguresfortheninemonths endedDecember31,
Previousyear ended
March31,
2015
2015
2014
2015
2014
2015

Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Audited
Total income
-
-
-
-
-
-
(Loss) /Profitbefore tax
(0.91)
(1.31)
0.34
(3.12)
(80.98)
(474.18)
(Loss) /Profit after tax
(0.93)
1.62
0.33
(0.22)
(81.26)
(479.80)
ThefiguresofthepreviousperioduptoMarch31,2015wereaudited/reviewedbyafirmofCharteredAccountantsotherthanS.R.Batliboi&AssociatesLLP.Previousperiod/yearfigureshavebeenregrouped/
reclassified, wherever necessaryto confirm to currentperiod'sclassification.
PursuanttoRegulation33oftheSEBI(ListingObligationandDisclosureRequirements)Regulations,2015,theCompanyhasoptedtopublishtheconsolidatedfinancialresults.Thestandalonefinancialresults, however, arebeingmade available to theStock Exchanges where thesecuritiesof theCompanyare listed and are also beingposted on theCompany's websitewww.subex.com.
ByOrderof theBoard
MumbaiSurjeet Singh
Date: February10, 2016 Managing Director& CEO
Forfurtherdetailsontheresults, please visitourwebsite: www.subex.com

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