Subex Limited - Results for quarter & half year ended Sep 30, 2019

Subex

11/11/2019 10:17

RNS Number : 9624S

Subex Limited

11 November 2019

 

 

November 11, 2019

 

To

The London Stock Exchange

10 Paternoster Square

London

EC4M 7LS

 

Dear Sir/Madam,

 

Sub: Outcome of the Board Meeting of Subex Limited "The Company" held on November 08, 2019

 

Please be informed that the agenda item summarized hereunder was discussed and approved at the Board Meeting of the Company held on November 08, 2019 at Bengaluru:

 

·     Unaudited consolidated financial results of the Company for the quarter and half-year ended September 30, 2019.

 

Please find enclosed:

 

·     The unaudited consolidated financial results of the Company for the quarter and half-year ended September 30, 2019.

 

 

We request you to take the aforesaid notification on record.

 

Thanking you                                                   

 

Yours truly,

For Subex Limited

 

 

 

Anil Singhvi

Chairman & Independent Director

DIN:00239589

 

 

 

 

 

 

 

SUBEX LIMITED

Registered office: RMZ Ecoworld, Outer Ring Road, Devarabisanahalli, Bangalore - 560 103

Statement of Unaudited Consolidated Financial Results for the quarter and six months ended September 30, 2019

(`in Lakhs)

Particulars
Quarter ended
Year to date figures for the six months ended
Year ended
September 30, 2019
June 30, 2019
September 30, 2018
September 30, 2019
September 30, 2018
March 31, 2019
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Audited
Income
1
Revenue from operations
8,567
7,895
8,806
16,462
16,397
34,812
2
Other income
140
36
17
176
34
101
3
Total income (1+2)
8,707
7,931
8,823
16,638
16,431
34,913
4
Expenses
(a)
Employee benefits expense (Refer note 4)
4,437
4,309
4,853
8,746
9,358
19,105
(b)
Finance costs
142
150
46
292
108
216
(c)
Depreciation and amortisation expense
378
371
122
749
229
483
(d)
Exchange fluctuation (gain)/ loss, net
(292)
(259)
(283)
(551)
(811)
(171)
(e)
Other expenses
2,331
2,068
2,717
4,399
5,355
10,572
Total expenses
6,996
6,639
7,455
13,635
14,239
30,205
5
Net profit before tax expense (3-4)
1,711
1,292
1,368
3,003
2,192
4,708
6
Tax expense, net
Current tax charge
1
1
38
2
108
274
Provision - foreign withholding taxes (Refer note 6)
263
223
208
486
418
885
Deferred tax charge (Refer note 7)
817
540
491
1,357
640
1,027
Total tax expense
1,081
764
737
1,845
1,166
2,186
7
Net profit for the period/ year (5-6)
630
528
631
1,158
1,026
2,522
8
Other comprehensive income, net of tax expense
Items that will be reclassified subsequently to profit or loss:
Net exchange differences (loss)/ gain on translation of foreign operations
(124)
(266)
295
(390)
(210)
(390)
Items that will not be reclassified subsequently to profit or loss:
Re-measurement loss on defined benefits plan
(25)
(10)
(14)
(35)
(29)
(38)
Total other comprehensive income
(149)
(276)
281
(425)
(239)
(428)
9
Total comprehensive income for the period/ year (7+8)
481
252
912
733
787
2,094
10
Paid up equity share capital
56,200
56,200
56,200
56,200
56,200
56,200
[face value of`10 (March 31, 2019:`10)]
11
Other equity
-
-
-
-
-
23,210
12
Earnings per share (of`10/- each) (not annualised in case of the interim periods)
(a)
- Basic
0.12
0.10
0.11
0.21
0.18
0.45
(b)
- Diluted
0.12
0.10
0.11
0.21
0.18
0.45



 

SUBEX LIMITED
Registered office: RMZ Ecoworld, Outer Ring Road, Devarabisanahalli, Bangalore - 560 103
Statement of Consolidated Assets and Liabilities
(`in Lakhs)
As at
Particulars
September 30, 2019
March 31, 2019
Unaudited
Audited
A
ASSETS
Non-current assets
Property, plant and equipment
543
540
Right-of-use assets
4,489
-
Goodwill on consolidation
65,882
65,882
Other intangible assets
Financial assets
4
7
Loans
530
503
Other balances with banks
419
420
Other financial assets
234
234
Income tax asset (net)
3,081
3,039
Deferred tax asset (including MAT credit entitlement)
642
624
Other non-current assets
267
478
76,091
71,727
Current assets
Financial assets
Loans
133
121
Trade receivables
8,668
8,539
Cash and cash equivalents
6,106
3,947
Other balances with banks
125
252
Other financial assets
3,790
4,537
Other current assets
680
526
19,502
17,922
Total Assets
95,593
89,649
B
EQUITY AND LIABILITIES
Equity
Equity share capital
56,200
56,200
Other equity
23,170
23,210
Total equity
79,370
79,410
Liabilities
Non-current liabilities
Financial liabilities
Lease Liability
3,531
-
Provisions
337
305
Deferred tax liabilities(net)
3,244
1,928
7,112
2,233
Current liabilities
Financial liabilities
Lease Liabilities
Trade payable
1,299
-
- total outstanding dues of micro enterprises and small enterprises
28
7
- total outstanding dues of creditors other than micro enterprises and small enterprises
796
827
Other financial liabilities
2,174
2,961
Other current liabilities
3,168
2,452
Provisions
804
729
Income tax liabilities (net)
842
1,030
9,111
8,006
Total liabilities
16,223
10,239
Total equity and liabilities
95,593
89,649



 

SUBEX LIMITED
Statement of cash flows for the six months ended September 30, 2019
(`in Lakhs)
Six months ended
Particulars
September 30, 2019
September 30, 2018
Unaudited
Unaudited
(A)
Operating activities
Profit before tax expense
Adjustments to reconcile profit before tax expense to net cash flows:
3,003
2,192
Depreciation of property, plant and equipment and right-of-use assets
746
151
Amortization of intangible assets
3
78
Interest income (including fair value changes)
(64)
(28)
Finance costs (including fair value changes)
243
108
Provision for doubtful debts and advances (net of reversal)
16
338
Expense on share based payment
Amortized cost of deposits
48
29
Net foreign exchange differences
(520)
(445)
Operating profit before working capital changes
3,475
2,423
Working capital adjustments:
(Increase)/ decrease in loans
(7)
(37)
(Increase)/ decrease in trade receivables
89
(1,484)
(Increase)/ decrease in other financial assets
586
(84)
(Increase)/ decrease in other assets
(219)
(88)
Increase/ (decrease) in trade payables
(1)
432
Increase/ (decrease) in other financial liabilities
(697)
(383)
Increase/ (decrease) in other current liabilities
645
598
Increase/ (decrease) in provisions
62
151
3,933
1,528
Income tax paid (including TDS, net of refund)
(710)
(425)
Net cash flows from operating activities
3,223
1,103
(B)
Investing activities
Purchase of property, plant and equipment
(288)
(194)
Movement in margin money deposit (net)
131
(18)
Purchase of treasury shares by ESOP trust
(378)
(32)
Interest received
25
5
Net cash flows used in investing activities
(510)
(239)
(C)
Financing activities
Repayment in working capital loans (net)
(1,027)
Interest paid
(230)
(95)
Repayment of lease liability
(425)
-
Net cash flows used in financing activities
(655)
(1,122)
(D)
Net increase/ (decrease) in cash and cash equivalents (A+B+C)
2,058
(258)
Net foreign exchange difference on cash and cash equivalents
101
(103)
Cash and cash equivalents at the beginning of the period
3,947
3,007
(E)
Cash and cash equivalents at the end of the period
6,106
2,646



 

 

 

Notes:

1 The above results have been reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on November 8, 2019.

2 The financial results have been prepared in accordance with the recognition and measurement principles laid down in the applicable Indian Accounting Standards ("Ind AS") prescribed under section 133 of the Companies Act, 2013, read with relevant rules thereunder and in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

3 The financial results of Subex Limited (Standalone information):

Particulars
Quarter ended
Year to date figures for the six months ended
Year ended
September 30, 2019
June 30, 2019
September 30, 2018
September 30, 2019
September 30, 2018
March 31, 2019
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Audited
Total income
331
229
481
442
1,128
1,926
Net loss before tax expense
(262)
(512)
(533)
(774)
(1,506)
(2,455)
Net loss for the period/ year
(262)
(512)
(534)
(774)
(1,507)
(2,453)
Total comprehensive income for the period/ year
(263)
(513)
(538)
(776)
(1512)
(2,456)

(`in Lakhs)

                                                                                                                                                                                               

4    Employee benefits expenses for the quarters ended September 30, 2019, June 30, 2019, and September 30, 2018 are net of reversal of provision no longer required, in respect of employee incentives relating to sales and delivery commissions, amounting to ` 438 Lakhs, ` 450 Lakhs and ` 35 Lakhs, respectively, that for the six months ended September 30, 2019 and September 30, 2018 amounting to ` 888 Lakhs and ` 35 Lakhs and that for the year ended March 31, 2019 amounting to ` 40 Lakhs.

5    As at March 31, 2019, the Group assessed and concluded the carrying value of it's goodwill along with carrying value of related Cash Generating Units ('CGUs') to be appropriate, basis the valuation carried out by an external valuer. There is no change in the management's assessment as regards the aforementioned carrying value of it's goodwill along with carrying value of related CGU as at September 30, 2019.

6    Represents provision in respect of withholding taxes deducted/ deductible by the overseas customers of the Group.

7    Deferred tax charge/ (credit), comprises of deferred tax liability arising on account of tax benefits from amortisation of intangible assets of Subex Assurance LLP, net of deferred tax assets arising on account of carry forward losses and other taxable temporary differences, which arose mainly on account of business restructuring effected from November 1, 2017, wherein, the Company's RMS business and the Digital business was transferred on going concern basis to Subex Assurance LLP and Subex Digital LLP respectively.

8    The Group is engaged in the business of software products and related services, which are monitored as a single segment by the Chief Operating Decision Maker, accordingly, these, in the context of Ind AS 108 on Operating Segments Reporting are considered to constitute one segment and hence the Group has not made any additional segment disclosures.

9    Subex Employee Welfare and ESOP Benefit Trust (hereinafter referred to as the "ESOP Trust"), registered and authorised to acquire shares of the Company through secondary market for providing share-based payments to its employees, is consolidated in the standalone financial results of the Company and the shares reacquired and held by ESOP Trust are treated as treasury shares and recognised at cost and deducted from other equity. The shares held by the Trust were reduced on a weighted average basis from outstanding number of shares for computation of basic and diluted EPS of the Company.

Effective April 1, 2019, the Group adopted Ind AS 116 "Leases", applied to all lease contracts existing on April 1, 2019 using the modified retrospective method and has taken the cumulative adjustment to retained earnings, on the date of initial application. Accordingly, comparatives for the year ended March 31, 2019 have not been retrospectively adjusted. On transition, the adoption of the new standard resulted in recognition of Right-of-Use asset (ROU) of  `4,816 Lakhs and a lease liability of  `5,052 Lakhs. The cumulative effect of applying the standard resulted in `442 Lakhs being debited to retained earnings, net of taxes.

Place: Bengaluru

Date: November 8, 2019

Vinod Kumar Padmanabhan Managing Director & CEO

 

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