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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Ienergizer Limited | LSE:IBPO | London | Ordinary Share | GG00B54NMG96 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 59.80 | 57.80 | 59.60 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMIBPO
RNS Number : 0471F
iEnergizer Limited
12 November 2020
12 November 2020
iEnergizer Limited
("iEnergizer", the "Company" or the "Group")
INTERIM RESULTS FOR THE SIX MONTHSED 30 SEPTEMBER 2020
iEnergizer, the technology services and media solutions leader for the digital age, reports another record set of interim results for the six months ended September 30, 2020. Following the increase in both earnings and interim dividend the Board looks forward to the remainder of the year with confidence.
Financial Highlights: Enhanced profitability and margin improvements despite temporary revenue impact of the COVID-19 pandemic.
-- EBITDA ([1]) up by $1.6m to $30.7m (H1 2020: $29.1m) -- Increased EBITDA margin at 34.1% (H1 2020: 30.2%)
-- Group Revenue down 6.5% to $90.2m (H1 2020: $96.5m), reflecting reduced business from clients impacted by government lockdown measures
-- Operating profit increased to $27.9m (H1 2020: $26.8m) -- Increased operating profit margin at 30.9% (H1 2020: 27.8%) -- Profit before tax increased to $26.9m (H1 2020: $25.0m) -- Higher profit before tax margin at 29.9% (H1 2020: 25.9%) -- Profit after tax increased to $23.5m (H1 2020: $21.6m) -- Net Cash of $5.6m (31 March 2020: $1.6m) -- Proposing interim dividend of 5.72p per ordinary share ($14.36m) (H1 2020: 5.2p)
Operational Highlights : Continued focus on higher margin work and success in business development with existing international customers.
-- Business Process Outsource ("BPO"): Service Revenue reduced by 7.6% to $54.9m in H1 2021 (H1 2020: $59.4m), due to reduced business from some clients in India. EBITDA margin grew to 37.3% at $20.8m (H1 2020: 33.5% at $20.3m), as COVID-19 positively impacted iEnergizer's largest and higher margin generating international verticals, offsetting the negative impact on smaller verticals (low-margin India-based travel and e-commerce work). BPO's outsized exposure to fast-growing markets of video gaming, BFSI, telecom and healthcare is expected to result in revenue growth going forward after the temporary decline in the first half of the year.
-- Content Division: Service Revenue reduced by 5.6% to $33.7m in H1 2021 (H1 2020: $35.7m), as some key clients postponed high value projects to H2 2021, due to COVID-19. EBITDA margins grew to 28.8% at $9.9m (H1 2020: 24.5% at $8.8m) due to cost-savings and productivity enhancements from 90% of employees transitioning to work from home.
o Increase in revenue share from higher margin E-Learning contracts helped to reduce the larger negative revenue impact on traditional publishing segments during global lockdowns in H1 2021.
o Focussed on increasing its revenue share from the SaaS product line of "Scipris", investing in sales to promote this product line.
o Continuing to identify further opportunities in Anti Money Laundering /Know Your Customer services.
-- New business development: US based sales team is acutely focussed on selling additional services, specifically in the online learning market, which is expected to grow significantly due to new opportunities presented by remote education and operating systems, while working on its strategic priorities: to enhance and grow key accounts; to identify and win new business through new customers; as well as target our existing accounts; and to cross-sell and generate leads for new product launches.
o Scalability, breadth of services and a highly trained workforce allows iEnergizer to take advantage of industry tailwinds in highly profitable verticals.
o The Company has continued to acquire new customers, in H1 2021 across iEnergizer's business lines of Business Process Outsource and Content Services Division, with revenue expected to grow from H2 2021 onwards for these new customers.
-- Cost management:
o Transition to agent work-from-home ("WFH") model has increased efficiency, profitability, client loyalty, productivity, and decreased costs.
o 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 Effective use of technology to handle greater volumes from key customers.
-- COVID-19
o The Company has taken important steps to ensure that it is well positioned to fully support the requirements of its customers and staff. Business is operating efficiently in servicing its customers, with most employees successfully transitioned to remote working.
o As the lockdown measures are being eased, employees catering to Indian customers are now returning to the Company's offices, following government and local authority best-practice guidelines.
o This provides the Directors with confidence that the Group's operational efficiency will increase to normal levels as the Government of India continue to reduce the lockdown measures.
o The Company's balance sheet, net cash position and its long-term customer relationships remain strong.
-- Interim Dividend:
o In line with the progressive dividend policy, the Company is pleased to announce an interim dividend of 5.72p with the dividend record date of 27 November, 2020. 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 26 November, 2020 and the interim dividend is expected to be paid on 18 December, 2020.
Marc Vassanelli, Chairman of iEnergizer, commented:
"Despite challenges in some business areas due to the impact of COVID-19 on our customers, iEnergizer has demonstrated high resilience during this period. The continued growth in profit margins has been driven by our colleagues' continued efforts in deepening existing customer relationships and via iEnergizer's compelling and evolving proposition, combined with careful and focused 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 5.72p, continuing the trend started in H1 2020.
"During this unprecedented time of COVID-19, we remain in close discussions with our customers to ensure that we meet their needs and requirements, while supporting our staff to work safely and remotely as per government guidelines, to serve customers at maximum capacity and efficiency on all our services.
"With iEnergizer's solid foundation, proven strength in operational execution, new sales initiatives, differentiated offerings, healthy balance sheet, and with substantial opportunities for further growth identified, w e expect sustained business performance and the Board looks forward to the remainder of the year with confidence."
-Ends-
EBITDA has been calculated under the IFRS 16 accounting standards, under which a company's operating lease liabilities are shown as liabilities on the balance sheet, together with the related assets that correspond to the right to use such assets over the remaining life of the related lease contracts. If these impacts had not been taken into consideration, the EBITDA would have been $29.8m.
iEnergizer Ltd. +44 (0)1481 242233 Chris de Putron Mark De La Rue +44 (0)20 3727 FTI Consulting - Communications Adviser 1000 Jonathon Brill / Eleanor Purdon Arden Partners - Nominated adviser and Broker Ciaran Walsh / Benjamin Cryer/ Steve Douglas / Dan Gee-Summons (Corporate Finance) +44 (0)20 7614 James Reed-Daunter (Equity Sales) 5900
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 2020 and 2019
Unaudited Condensed Consolidated Statements of Financial Position
(All amounts in United States Dollars, unless otherwise stated)
Notes As at As at 30 September 31 March 2020 2020 Unaudited Audited -------------------------------- ------ ---------------------------- ---------------------- ASSETS Non-current Goodwill 5 102,249,839 102,248,030 Other intangible assets 6 12,745,302 12,557,319 Right to use 10 4,912,802 5,303,271 Property, plant and equipment 7 6,189,439 7,142,700 Long- term financial asset 2,511,424 3,351,981 Non-current tax assets 248,946 1,238,883 Deferred tax asset 3,866,593 3,623,361 Other non current assets 2,915 21,047 Non-current assets 132,727,260 135,486,592 ---------------------------- ---------------------- Current Trade and other receivables 30,608,165 32,044,127 Cash and cash equivalents 44,208,431 45,147,783 Short- term financial assets 8 14,594,266 7,642,641 Current tax assets - 211,055 Other current assets 4,042,739 2,589,023
Current assets 93,453,601 87,634,629 ---------------------------- ---------------------- Total assets 226,180,861 223,121,221 ============================ ====================== 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) Retained earnings 142,839,866 139,677,678 Other components of equity (16,591,327) (17,320,281) Total equity attributable to equity holders of the parent 144,491,123 140,599,981 ---------------------------- ---------------------- Notes As at As at 30 September 31 March 2020 2020 Unaudited Audited ------ ------------- -------------- Liabilities Non-current Long term borrowings 28,561,619 32,992,983 Employee benefit obligations 4,667,389 4,667,061 Deferred tax liability 10,664,867 9,717,709 Non-current liabilities 43,893,875 47,377,753 -------------------------- ------------------------ Current Trade and other payables 14,616,199 11,481,885 Employee benefit obligations 828,923 810,614 Current tax liabilities 300,107 - Current portion of long term borrowings 10,049,427 10,527,775 Other current liabilities 12,001,207 12,323,213 Current liabilities 37,795,863 35,143,487 -------------------------- ------------------------ Total equity and liabilities 226,180,861 223,121,221 ========================== ========================
(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)
(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)
Notes For the six For the six months months ended ended 30 September 30 September 2020 2019 Unaudited Unaudited ---------------------------------- ------ ------------- -------------- Income from operations Revenue from services 88,675,643 95,180,896 Other operating income 1,070,303 1,046,950 89,745,946 96,227,846 ------------- -------------- Cost and expenses Outsourced service cost 17,960,207 21,219,347 Employee benefits expense 34,138,255 39,580,811 Depreciation and amortisation 2,343,227 2,063,317 Other expenses 7,391,648 6,566,098 61,833,337 69,429,573 ------------- -------------- Operating profit 27,912,609 26,798,273 Finance income 590,691 360,107 Finance cost (1,603,155) (2,199,643) Profit before tax 26,900,145 24,958,737 ------------- -------------- Income tax expense 3,363,846 3,387,120 Profit for the year attributable to equity holders of the parent 23,536,299 21,571,617 ============= ============== Earnings per share 9 Basic 0.12 0.11 Diluted 0.12 0.11 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 For the six months ended ended 30 September 2020 30 September 2019 Unaudited Unaudited ------------------------------------------- ------------------------------- ----------------------------- Profit after tax for the year 23,536,299 21,571,617 Other comprehensive income Items that will be reclassified subsequently to the consolidated income statement Exchange differences on translating foreign operations 728,954 (808,836) Net other comprehensive (loss) that will be reclassified subsequently to consolidated income statement 728,954 (808,836) ------------------------------- ----------------------------- Items that will not be reclassified subsequently to income statement Remeasurement of the net defined benefit liability - 257,399 Income tax relating to items that will not be reclassified - (74,954) Net other comprehensive income that will be not be reclassified subsequently to consolidated income statement - 182,445 ------------------------------- ----------------------------- Other comprehensive income/(loss) for the year 728,954 (626,391) Total comprehensive income attributable to equity holders 24,265,253 20,945,226 ------------------------------- -----------------------------
(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 Additional Share Merger Other components Retained Total capital paid-in-capital compensation reserve of equity earnings equity reserve --------------------------- Foreign Net defined currency benefit translation liability reserve --------------- ---------- ----------------- -------------- ------------ ------------- ------------ ------------- --------------- Balance as at 1 April 2019 3,776,175 15,451,809 63,986 (1,049,386) (12,448,144) 778,332 131,950,337 138,523,109 --------------- ---------- ----------------- -------------- ------------ ------------- ------------ ------------- --------------- Dividends - - - - - - (37,294,827) (37,294,827) --------------- ---------- ----------------- -------------- ------------ ------------- ------------ ------------- --------------- Transaction with owners - - - - - - (37,294,827) (37,294,827) Profit for the year - - - - - - 45,022,168 45,022,168 Other comprehensive loss - - - - (5,559,767) (90,702) - (5,650,469)
--------------- Total comprehensive income for the period - - - - (5,559,767) (90,702) 45,022,168 39,371,699 --------------- ---------- ----------------- -------------- ------------ ------------- ------------ ------------- --------------- Balance as at 31 March 2020 3,776,175 15,451,809 63,986 (1,049,386) (18,007,911) 687,630 139,677,678 140,599,981 --------------- ---------- ----------------- -------------- ------------ ------------- ------------ ------------- ---------------
(The accompanying notes are an integral part of the Consolidated Financial Statements)
Share Additional Share compensation Merger Other components Retained Total capital Paid in reserve reserve of equity earnings equity Capital ---------------------------------- Foreign Net defined currency benefit translation liability reserve --------------- ------------- --------------------- ------------------------------- --------------- ---------------- ------------------------------------------------- Balance as at 01 April 2020 3,776,175 15,451,809 63,986 (1,049,386) (18,007,911) 687,630 139,677,678 140,599,981 --------------- ------------- --------------------- ------------------------------- --------------- ---------------- ---------------- -------------- --------------- Dividends - - - - - - (20,374,113) (20,374,113) --------------- ------------- --------------------- ------------------------------- --------------- ---------------- ---------------- -------------- --------------- Transaction with owners - - - - - - (20,374,113) (20,374,113) Profit for the year - - - - - - 23,536,300 23,536,300 Other comprehensive gain - - - - 728,954 - - 728,954 --------------- Total comprehensive income for the period - - - - 728,954 - 23,536,300 24,265,254 --------------- ------------- --------------------- ------------------------------- --------------- ---------------- ---------------- -------------- --------------- Balance as at 30 September 2020 3,776,175 15,451,809 63,986 (1,049,386) (17,278,957) 687,630 142,839,866 144,491,123 --------------- ------------- --------------------- ------------------------------- --------------- ---------------- ---------------- -------------- ---------------
(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Statements of Cash Flows
(All amounts in United States Dollars, unless otherwise stated)
For the six For the six months months ended ended 30 September 30 September 2020 2019 (A) Cash flow from operating activities Profit before tax 26,900,145 24,958,737 Adjustments Depreciation and amortisation 2,343,227 2,063,317 Loss/(Profit) on disposal of property, plant and equipment (2,064) (6,024) Trade receivables written-off/provision for doubtful debts 1,089,700 (65,262) Sundry balances written back (2,750) - Unrealised foreign exchange gain (651,277) (174,089) Finance income (590,691) (360,107) Finance cost 1,603,155 2,199,643 ---------------------------- ------------------------------- 30,689,445 28,616,215 Changes in operating assets and liabilities (Increase)/ Decrease in trade and other receivables (484,556) 2,015,601 (Increase)/ Decrease in other assets (current and non-current) 2,081,433 941,298 Increase / (Decrease) Non-current liabilities, trade payables & other current liabilities (1,304,119) 2,670,121 (Decrease)/ Increase in employee benefit obligations (9,053) 307,761 ---------------------------- ------------------------------- Cash generated from operations 30,973,150 34,550,996 Income taxes paid (1,158,820) (2,383,750) ---------------------------- ------------------------------- Net cash generated from operating activities 29,814,330 32,167,246 ---------------------------- ------------------------------- (B) Cash flow for investing activities Payments for purchase of property plant and equipment (256,175) (1,521,588) Investment in fixed deposit (Net) (3,256,262) (883,210) Proceeds from disposal of property, plant & equipment 2,258 6,581 Payments for purchase of other intangible assets (505,703) (220,909) Interest received 585,282 400,808 Net cash used in investing activities (3,430,600) (2,218,318) ---------------------------- ------------------------------- For the six For the six months months ended ended 30 September 30 September 2020 2019 (C ) Cash flow from financing activities Interest paid (1,603,155) (2,145,802) Repayment of borowings and lease liability (5,179,793) (4,150,357) Net cash used in financing activities (6,782,948) (6,296,159) --------------------------- ------------------------------ Net increase/(decrease) in cash and cash equivalents 19,600,782 23,652,769 Dividends paid to equity holders of the parent (20,374,113) (24,068,320) Cash and cash equivalents at the beginning of the year 45,147,783 42,404,281 Effect of exchange rate changes on cash (166,022) 83,553 Cash and cash equivalents at the end of the year 44,208,431 42,072,283 --------------------------- ------------------------------ Cash and cash equivalents comprise Cash in hand 13,801 8,337 Balances with banks in current account 44,194,630 42,063,946
44,208,431 42,072,283 --------------------------- ------------------------------
(The accompanying notes are an integral part of these Consolidated 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 Management Services 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 2020 and 2019. 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 2020 and 2019.
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 November 2020.
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 2020 and 2019.
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 2020.
5. GOODWILL
The net carrying amount of goodwill can be analysed as follows:
Particulars Amount ----------------------------- ----------------- Balance as at 1 April 2019 102,256,665 Impairment loss recognized - Translation adjustment (8,635) Balance as at 31 March 2020 102,248,030 ----------------------------- ----------------- Particulars Amount --------------------------------- ------------ Balance as at 01 April 2020 102,248,030 Translation adjustment 1,809 Balance as at 30 September 2020 102,249,839 --------------------------------- ------------ 6. OTHER INTANGIBLE ASSETS
The Intangible assets comprise of computer software, customer contracts.
Particulars Customer Computer Patent Trademark Intangibles Total contracts software under development ------------------------- ------------------- --------------- --------------- ---------------- -------------- ----------- Cost Balance as at 1 April 2019 24,112,814 3,944,019 100,000 12,000,000 132,490 40,289,323 ------------------- --------------- --------------- ---------------- -------------- ----------- Additions - 511,654 - - - 511,654 Disposals - - - - - - Translation and other adjustments (9,657) (276,192) - - - (285,849) Balance as at 31 March 2020 24,103,157 4,179,481 100,000 12,000,000 132,490 40,515,128 ------------------- --------------- --------------- ---------------- -------------- ----------- Accumulated amortisation Balance as at 1 April 2019 24,112,814 3,559,966 - - 132,490 27,805,270 ------------------- --------------- --------------- ---------------- -------------- ----------- Amortisation/impairment for the period - 423,580 - - - 423,580 Disposals - - - - - - Translation and other adjustments (9,657) (261,384) - - - (271,041) Balance as at 31 March 2020 24,103,157 3,722,162 - - 132,490 27,957,809 ------------------- --------------- --------------- ---------------- -------------- ----------- Carrying values as at 31 March 2020 - 457,319 100,000 12,000,000 - 12,557,319 ------------------------- ------------------- --------------- --------------- ---------------- -------------- ----------- Particulars Customer contracts* Computer Patent Trade mark Intangibles Total softwares under development ------------------------- ---------------------- ------------------ ------------------ ------------------- ----------------- ------------------ Cost Balance as at 01 April 2020 24,103,157 4,179,481 100,000 12,000,000 132,490 40,515,128 ---------------------- ------------------ ------------------ ------------------- ----------------- ------------------ Additions - 505,703 - - - 505,703 Disposals - - - - - - Translation and other adjustments 2,024 64,686 - - - 66,710 Balance as at 30 September 2020 24,105,181 4,749,870 100,000 12,000,000 132,490 41,087,541 ---------------------- ------------------ ------------------ ------------------- ----------------- ------------------ Accumulated amortisation Balance as at 01 April 2020 24,103,157 3,722,162 - - 132,490 27,957,809 ---------------------- ------------------ ------------------ ------------------- ----------------- ------------------ Amortisation/impairment for the period - 319,700 - - - 319,700 Disposals - - - - - - Translation and other adjustments 2,024 62,706 - - - 64,730 Balance as at 30 September 2020 24,105,181 4,104,568 - - 132,490 28,342,239 ---------------------- ------------------ ------------------ ------------------- ----------------- ------------------ Carrying values as at 30 September
2020 - 645,302 100,000 12,000,000 - 12,745,302 ------------------------- ---------------------- ------------------ ------------------ ------------------- ----------------- ------------------ 7. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment comprise of the following:
Particulars Computer Office Furniture Air Vehicle Leasehold Plant Capital Total and data equipment and conditioner improve-ments and work in equipment fixtures and machinery progress generator -------------- ----------- ---------- ---------- ------------ --------- -------------- ---------- --------- ------------------ Cost Balance as at 1 April 2019 8,406,553 854,772 1,438,730 916,719 20,747 4,717,127 2,316,570 224,308 18,895,526 ----------- ---------- ---------- ------------ --------- -------------- ---------- --------- ------------------ Additions 2,467,719 274,357 39,541 34,233 398,792 152,713 120,773 114,088 3,602,216 Disposals (85,706) - (16,167) - - - (15,686) - (117,559) Translation and other adjustments (684,194) (66,510) (95,586) (67,004) (23,407) (334,231) (147,647) (7,175) (1,425,754) Balance as at 31 March 2020 10,104,372 1,062,619 1,366,518 883,948 396,132 4,535,609 2,274,010 331,221 20,954,429 ----------- ---------- ---------- ------------ --------- -------------- ---------- --------- ------------------ Balance as at 1 April 2019 5,522,457 778,064 996,024 262,105 16,561 2,846,284 1,866,959 - 12,288,454 ----------- ---------- ---------- ------------ --------- -------------- ---------- --------- ------------------ Depreciation for the period 1,628,060 62,006 117,881 114,565 29,858 461,149 187,790 - 2,601,309 Disposals (85,037) - (16,083) - - - (15,261) - (116,381) Translation and other adjustments (466,409) (52,044) (69,242) (24,599) (2,745) (220,207) (126,407) - (961,653) Balance as at 31 March 2020 6,599,071 788,026 1,028,580 352,071 43,674 3,087,226 1,913,081 - 13,811,729 ----------- ---------- ---------- ------------ --------- -------------- ---------- --------- ------------------ Carrying values as at 31 March 2020 3,505,301 274,593 337,938 531,877 352,458 1,448,383 360,929 331,221 7,142,700 -------------- ----------- ---------- ---------- ------------ --------- -------------- ---------- --------- ------------------ Particulars Computer Office Furniture Air conditioner Vehicle Leasehold Plant and Capital Total and data Equipment and fixtures and generator improvements machinery work in equipment progress -------------- ------------------- ------------------ ------------------ ------------------- -------- ------------------ ------------------------ ---------------- ----------- Cost Balance as at 01 April 2020 10,104,372 1,062,619 1,366,518 883,948 396,132 4,535,609 2,274,011 331,221 20,954,430 ------------------- ------------------ ------------------ ------------------- -------- ------------------ ------------------------ ---------------- ----------- Additions 355,308 27,857 15,019 45,619 - 21,528 43,940 (253,097) 256,174 Disposals (Net) (58,497) - - - - - - - (58,497) Translation and other adjustments 158,534 15,872 20,117 13,761 6,333 71,299 32,611 5,478 324,005 Balance as at 30 September 2020 10,559,717 1,106,348 1,401,654 943,328 402,465 4,628,436 2,350,562 83,602 21,476,112 ------------------- ------------------ ------------------ ------------------- -------- ------------------ ------------------------ ---------------- ----------- Accumulated depreciation Balance as at 01 April 2020 6,599,071 788,028 1,028,580 352,070 43,674 3,087,225 1,913,082 - 13,811,730 ------------------- ------------------ ------------------ ------------------- -------- ------------------ ------------------------ ---------------- ----------- Depreciation for the period 859,562 33,731 53,728 53,916 1,596 232,032 65,810 - 1,300,375 Disposals (Net) (58,303) - - - - - - - (58,303) Translation and other adjustments 117,019 11,715 15,593 6,534 730 52,860 28,421 - 232,872 Balance as at 30 September 2020 7,517,349 833,474 1,097,901 412,520 46,000 3,372,117 2,007,313 - 15,286,674 ------------------- ------------------ ------------------ ------------------- -------- ------------------ ------------------------ ---------------- ----------- Carrying values as at 30 September 2020 3,042,368 272,874 303,753 530,808 356,465 1,256,319 343,249 83,602 6,189,438 -------------- ------------------- ------------------ ------------------ ------------------- -------- ------------------ ------------------------ ---------------- ----------- 8. SHORT TERM FINANCIAL ASSETS Particulars 30 September 31 March 2020 2020 ---------------------------------------- ------------------- ---------------- Security deposits 61,483 60,516 Restricted cash 5,815,886 4,293,982 Short term investments (fixed deposits with maturity less than 12 months) 8,648,935 3,244,643 Derivative financial instruments 23,942 - Due from officers and employees 22,354 27,244 Others 21,666 16,256 ---------------------------------------- ------------------- ---------------- 14,594,266 7,642,641 ---------------------------------------- ------------------- ----------------
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 2020 is as follows:
Basic earnings per share
Particulars 30 September 30 September 2020 2019 ---------------------------------------------- --------------------------- ---------------------------- Profit attributable to shareholders 23,536,299 21,571,617 Weighted average numbers shares outstanding 190,130,008 190,130,008 Basic earnings per share (US$) 0.12 0.11 ---------------------------------------------- --------------------------- ----------------------------
Diluted earnings per share
Particulars 30 September 30 September 2020 2019 ---------------------------------------------- -------------------------- ------------------- Profit attributable to shareholders 23,536,299 21,571,617 Weighted average numbers shares outstanding 190,130,008 190,130,008 Diluted earnings per share (US$) 0.12 0.09 ---------------------------------------------- -------------------------- -------------------
10. LEASES
(a) Lease liabilities are presented in the statement of financial position as follows:
Particulars 30 September 31 March 2020 2020 ------------- ------------- ------------------- Current 1,108,453 1,216,547 Non-current 4,293,899 4,467,004 ------------- ------------- ------------------- 5,402,352 5,683,551 ------------- ------------- -------------------
(b) The following are amounts recognised in consolidated income statement:
Particulars 30 September 31 March 2020 2020 ------------------------------------------ ------------- -------------- Depre ciation expenses of right-of-use Interest Expense on the Lease Liability 723,152 1,451,931 Interest expense on lease liability 266,387 587,564 Rent expenses* 29,448 9,323 Common area maintenance expenses 60,887 175,566 ------------------------------------------ ------------- -------------- Total 1,079,874 2,224,384 ------------------------------------------ ------------- --------------
*Rent expense in respect of Short Term Lease
(c) Right to use of assets as at 31 March 2020:
Particulars Leased premises --------------------------------- ---------------- Gross block Balance as at 31 March 2019 - IFRS-16 transition 6,311,071 --------------------------------- ---------------- Gross block as at 1 April 2019 6,311,071 Additions during the year 580,409 Translation adjustment (194,989) --------------------------------- ---------------- Gross block as at 31 March 2020 6,696,491 --------------------------------- ---------------- Accumulated depreciation Balance as at 1 April 2019 - Depreciation for the period 1,451,931 Translation adjustment (58,711) --------------------------------- ---------------- Accumulated depreciation as at 31 March 2020 1,393,220 --------------------------------- ---------------- Net block as at 31 March 2020 5,303,271 --------------------------------- ---------------- Particulars Leased premises ------------------------------------- ---------------- Gross block as at 1 April 2020 6,696,491 Additions during the year 270,081 Translation adjustment 90,297 ------------------------------------- ---------------- Gross block as at 30 September 2020 7,056,869 ------------------------------------- ---------------- Accumulated depreciation Balance as at 1 April 2020 1,393,220 Depreciation for the period 723,152 Translation adjustment 27,695 ------------------------------------- ---------------- Accumulated depreciation as at 30 September 2020 2,144,067 ------------------------------------- ---------------- Net block as at 30 September 2020 4,912,802 ------------------------------------- ----------------
The lease liabilities were USD 5,402,352 as of 30 September 2020 (USD 5,683,551 as of 31 March 2020). The corresponding interest expense for the six month ended 30 September 2020 amounted to USD 266,387 (interest expense for the year ended 31 March 2020 amounted to USD 587,564).
(e) The maturity analysis of the lease liabilities as of 31 March 2020, is as follows: Payments falling due Gross future minimum lease payments ----------------------------------------- ----------------------------- 30 September 31 March 2020 2020 ----------------------------------------- ------------- -------------- Within 1 year 1,699,280 1,616,248 Later than 1 year but less than 5 years 3,929,693 3,341,682 More than 5 years 1,744,994 2,436,638 ----------------------------------------- ------------- -------------- 7,373,967 7,394,568 ----------------------------------------- ------------- --------------
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 Mr. Anil Aggarwal party II. Entities directly or indirectly through EICR (Cyprus) Limited (Parent of one or more intermediaries, iEnergizer Limited) control, are controlled by, or are under common control with, the reported enterprises III. Key management personnel Mr. Anil Aggarwal (Ultimate Shareholder, ("KMP") and significant EICR Limited) shareholders 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 30 September 2020 2019 -------------------------------- ------------- ------------- Transactions during the period ended Short term employee benefits Remuneration paid to directors Chris de Putron 6,300 6,249 Mark De La Rue 6,300 6,249 Marc Vassanelli 18,899 18,747 Balances at the end of Total remuneration payable 147,741 109,385 -------------------------------- ------------- -------------
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 2020 ----------------------------------------------- Business Process Content delivery Total Outsource ---------------------------------- ---------------------- ----------------------- ---------------------- Revenue from external customers 54,935,441 33,740,202 88,675,643 Other income (including realised foreign exchange gain) 934,741 135,563 1,070,304 Realized Foreign Exchange gain/(loss) (23,942) 497,113 473,171 ---------------------------------- ---------------------- ----------------------- ---------------------- Segment revenue 55,846,240 34,372,878 90,219,118 ---------------------------------- ---------------------- ----------------------- ---------------------- Cost of outsourced Services 13,537,655 4,422,552 17,960,207 Employee benefit expense 15,971,568 18,166,687 34,138,255 Other expenses 5,513,055 1,878,593 7,391,648 ---------------------------------- ---------------------- ----------------------- ---------------------- Earning before interest, tax,
depreciation and amortization 20,823,961 9,905,046 30,729,007 ---------------------------------- ---------------------- ----------------------- ---------------------- Rent adjustment as per IFRS 16 321,533 568,176 889,709 ---------------------- ----------------------- ---------------------- Earning before interest, tax, depreciation and amortisation (before rent adjustment) 20,502,428 9,336,870 29,839,298 ---------------------------------- ---------------------- ----------------------- ---------------------- Unrealized Foreign Exchange gain/(loss) 23,942 (497,113) (473,171) Depreciation and amortisation (1,186,847) (1,156,380) (2,343,227) Rent adjustment as per IFRS 16 321,533 568,176 889,709 ---------------------------------- ---------------------- ----------------------- ---------------------- Segment operating profit 19,661,056 8,251,553 27,912,609 Other Income/expense : Finance income 433,615 157,076 590,691 Finance costs (258,483) (1,344,672) (1,603,155) Profit before tax 19,836,189 7,063,957 26,900,146 ---------------------------------- ---------------------- ----------------------- ---------------------- Income tax expense (2,145,367) (1,218,479) (3,363,846) Profit after tax 17,690,822 5,845,478 23,536,300 ---------------------------------- ---------------------- ----------------------- ---------------------- Segment assets 72,950,460 153,230,400 226,180,860 Segment liabilities 22,136,831 59,441,566 81,578,397 Capital expenditure 692,921 339,037 1,031,958 ---------------------------------- ---------------------- ----------------------- ---------------------- 30 September 2019 --------------------------------------------- Business Process Content delivery Total Outsource ---------------------------------- ---------------------- ----------------------- -------------------- Revenue from external customers 59,433,379 35,747,517 95,180,896 Other income (including realised foreign exchange gain) 1,028,226 280,168 1,308,394 Realized Foreign Exchange - - - gain/(loss) ---------------------------------- ---------------------- ----------------------- -------------------- Segment revenue 60,461,605 36,027,685 96,489,290 ---------------------------------- ---------------------- ----------------------- -------------------- Cost of outsourced Services 16,144,667 5,074,680 21,219,347 Employee benefit expense 20,188,248 19,392,563 39,580,811 Other expenses 3,839,943 2,726,155 6,566,098 ---------------------------------- ---------------------- ----------------------- -------------------- Earning before interest, tax, depreciation and amortisation 20,288,747 8,834,287 29,123,034 ---------------------------------- ---------------------- ----------------------- -------------------- Rent adjustment as per IFRS 16 (281,860) (602,398) (884,258) ---------------------- ----------------------- -------------------- Earning before interest, tax, depreciation and amortisation (before rent adjustment) 20,006,887 8,231,889 28,238,776 ---------------------------------- ---------------------- ----------------------- -------------------- Unrealized Foreign Exchange gain/(loss) - (261,444) (261,444) Depreciation and amortisation (959,531) (1,103,786) (2,063,317) Rent adjustment as per IFRS 16 281,860 602,398 884,258 ---------------------------------- ---------------------- ----------------------- -------------------- Segment operating profit 19,329,216 7,469,057 26,798,273 Other Income/expense : Finance income 246,139 113,968 360,107 Finance costs (256,274) (1,943,369) (2,199,643) Profit before tax 19,319,081 5,639,656 24,958,737 ---------------------------------- ---------------------- ----------------------- -------------------- Income tax expense (1,954,446) (1,432,675) (3,387,121) Profit after tax 17,364,635 4,206,981 21,571,616 ---------------------------------- ---------------------- ----------------------- -------------------- Segment assets 65,500,283 156,564,586 222,064,869 Segment liabilities 38,248,855 48,416,000 86,664,855 Capital expenditure 4,682,531 3,625,169 8,307,700 ---------------------------------- ---------------------- ----------------------- --------------------
Revenue from the following customer's amounts to more than 10% of consolidated revenue during the period presented.
30 September 2020
Revenue from Segment Amount -------------- ---------------------------- ----------- Customer 1 Business Process Outsource 12,959,751 -------------- ---------------------------- -----------
30 September 2019
Revenue from Segment Amount -------------- ---------------------------- ----------------------------- Customer 1 Business Process Outsource 9,928,185 -------------- ---------------------------- -----------------------------
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 31 March 2020 2020 ----------------------------------------- ------------- -------------- Non-current assets Loans and receivables Security deposits 408,735 382,614 Restricted cash 1,424,263 1,881,726 Fixed deposit 678,426 1,087,641 Current assets Loans and receivables Trade receivables 30,608,165 32,044,127 Cash and cash equivalents 44,198,534 45,147,783 Restricted cash 5,815,886 4,293,982 Security deposits 61,483 60,516 Fixed deposits with banks 8,648,934 3,244,643 Due from officers and employees 22,354 27,244 Interest accrued on fixed deposit 21,666 16,256 Fair value through profit and loss: Derivative financial instruments - - 91,888,446 88,186,532 ----------------------------------------- ------------- -------------- Financial liabilities 30 September 31 March 2020 2020 ----------------------------------------- ------------- -------------- Non-current liabilities Financial liabilities measured at amortized cost: Long term borrowings 28,561,619 32,992,983 Current liabilities Financial liabilities measured at amortized cost: Short term borrowings Trade payables 14,616,172 11,481,885 Current portion of long term borrowings 10,049,427 10,527,775 Other current liabilities 12,001,206 12,323,213 Fair value through profit and loss: Derivative financial instruments - - 65,228,424 67,325,856 ----------------------------------------- ------------- --------------
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:
Fair value measurements at reporting date using ------------------------------- ------------- ------------------------ 30 September 2020 Total Level 2 ------------------------------- ------------- ------------------------ (Notional Liabilities amount) Derivative instruments Forward contracts (currency - US$/INR) 19, 100 ,000 (89,733) ------------------------------- ------------- ------------------------ Fair value measurements at reporting date using ------------------------------- ----------- ------------------------ 31 March 2020 Total Level 2 ------------------------------- ----------- ------------------------ (Notional Assets amount) Derivative instruments Forward contracts (currency - US$/INR) 35,850,000 (1,891,422) ------------------------------- ----------- ------------------------
15. COMMITMENT AND CONTINGENCIES
As at 30 September 2020 and 31 March 2020, the Group had a capital commitment of US$ 318,845 and US$141,848 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$62,876 and US$55,427 as on 30 September 2020 and 31 March 2020 respectively and in respect of interest on VAT amounts to US$9,496 as on 30 September 2020 (US$9,347 as on 31 March 2020).
Guarantees: As at 30 September 2020 and 31 March 2020, guarantees provided by banks on behalf of the group companies to the revenue authorities and certain other agencies, amount to approximately US$37,320 and US$36,732 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 2020 and 2019.
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 2020 and 2019.
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