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iEnergizer Limited (IBPO)

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Thursday 11 November, 2021

iEnergizer Limited

INTERIM RESULTS

RNS Number : 9911R
iEnergizer Limited
11 November 2021
 

11 November 2021

 

iEnergizer Limited

 

("iEnergizer", the "Company" or the "Group")

 

UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021

 

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, 2021. The Board declares an increased interim dividend of 8.12p, 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 careful and active cost management

 

· Revenue up 35.1% to $121.9m (H1 2021: $90.2m), Service Revenue up 36.8%

· EBITDA up by $13.7m to $44.4m (H1 2021: $30.7m), resulting in EBITDA margin of 36.4% (H1 2021: 34.1%)

· Operating profit increased to $42.0m (H1 2021: $27.9m), resulting in operating profit margin of 34.5% (H1 2021: 30.9%)

· Profit before tax increased to $37.9m (H1 2021: $26.9m)

· Profit after tax increased to $34.3m (H1 2021: $23.5m)

· Net   Debt   of   $111.3m   (31 March 2021: $115.9m)

· Declared I nterim dividend of 8.12p per ordinary share ($21.0m) (H1 2021: 5.72p)

 

Operational Highlights : Continued focus on higher margin work and success in business growth from new and existing  customers

 

· Business Process Outsource ("BPO"): 

Strong service revenue growth of 51.9% to $83.5m in H1 2022 (H1 2021: $54.9m),   due   to an increase in   business from new and existing clients. EBITDA margin grew to 40.2% at $33.7m (H1 2021: 37.3% at $20.8m), as business from higher margin- generating international verticals increased.

Secured a multimillion dollar contract from a major telecom service provider to be serviced over a 3-year period.

BPO's delivery of superior quality delivery and competitive pricing provided an edge over the competition.

BPO's outsized exposure to fast-growing markets of media and entertainment, BFSI and telecommunications is expected to result in steady and strong revenue growth going forward.

 

· Content   Division:  

Service   revenue   growth   by   12.1%   to   $37.8m   in   H1   2022   (H1 2021: $33.7m), as business from key clients increased. EBITDA margins maintained over 28% at $10.7m (H1 2021: $9.9m) owing to greater productivity and overhead-related cost savings during continued work from home operations.

Focused sales efforts on increasing the revenue share from the high margin work areas of E-Learning and Online Education and the SaaS product line of "Scipris".

Increased revenue share from both Publishing as well as Non-Publishing segments.

 

· New business initiatives:

Scalability, breadth of services and a highly trained workforce allows iEnergizer to take advantage of industry tailwinds in highly profitable verticals.

Acquisition of the several new customers, as well as launching of new service lines.

Won a multimillion dollar contract to be serviced over a 3-year period through participation in a global RFP process of a major international telecom provider, which is expected to contribute to revenue growth starting H2 2022 onwards.

Launched a new service line of "work-person compensation support" under health care services for a new customer acquired during H1 2022.

For another new customer, a new business line for cargo support was launched during H1 2022.

Our award-winning performance in E-Learning, and the growth of our online training and education segments during the pandemic, is expected to continue as major corporate businesses have identified the cost and time savings of replacing classroom training with virtual training.

US based sales team continues to focus 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 to target our existing accounts; and to cross-sell and generate leads for new product launches.

 

· Cost management:

Continued 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.

Achieved cost savings through effective use of resources and productivity improvements in balancing home and office working operations.  

 

· COVID-19

The business is operating effectively while supporting the requirements of customers and staff;  the operational employees are well equipped to work remotely and from the office as per project requirements, and following government and local authority safety guidelines. 

 

· Interim Dividend:

In line with the progressive dividend policy, the Company is pleased to announce an interim dividend of 8.12p with the dividend record date of 26 November, 2021. This interim dividend reflects the Board’s confidence in the Group’s business plan and growth prospects.

The Company’s ordinary shares are expected to go ex-dividend on 25 November, 2021 and the interim dividend is expected to be paid on 20 December, 2021.

 

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 2022. This has been driven by our colleagues’ continued efforts in deepening existing customer relationships and attracting several new customers for our new service lines, combined with careful and 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 8.12p, in continuation with our approach since H1 2020.

 

“As the world recovers from the COVID-19 pandemic and the guidelines are relaxed, we are now well equipped to ensure that we meet all needs and requirements of customers, while supporting our staff to work safely either from office or remotely as per government guidelines, to serve customers at maximum capacity and efficiency across all our services.

 

“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 sustained business performance. The Board looks forward to the remainder of the year with confidence.”

 

 

-Ends-

 

 

iEnergizerLtd.

ChrisdePutron

 

+44(0)1481242233

MarkDeLaRue

 

FTI Consulting-CommunicationsAdviser

+44(0)2037271000

James Styles / Eleanor Purdon

 

ArdenPartners-NominatedadviserandBroker

Steve Douglas / Antonio Bossi (Corporate Finance)

James Reed-Daunter (Equity Sales)

+44(0)2076145900

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 2021 and 2020

Unaudited Condensed Consolidated Statements of Financial Position

(All amounts in United States Dollars, unless otherwise stated)

 

 

Notes

As  at

As  at

 

 

30 September 2021

31 March 2021

 

 

Unaudited

Audited

ASSETS

 

 

 

Non-current

 

 

 

Goodwill

5

  102,248,945

  102,250,365

Other intangible assets

6

  12,650,967

  12,573,227

Right to use

10

  12,541,724

  4,719,671

Property, plant and equipment

7

  5,693,505

  6,608,441

Long- term financial asset

 

  5,551,278

  3,311,739

Non-current tax assets

 

  84,485

  262,166

Deferred tax asset

 

  3,542,430

  3,469,843

Other non current assets

 

  306,706

  23,909

Non-current assets

 

  142,620,040

  133,219,361

 

 

 

 

Current

 

 

 

Trade and other receivables

 

  39,179,674

  33,893,763

Cash and cash equivalents

 

  46,662,641

  51,378,899

Short- term financial assets

8

  18,452,085

  16,281,924

Other current assets

 

8,141,800

  3,562,881

Current assets

 

112,436,200  

  105,117,467

 

 

 

 

Total assets

 

255,056,240  

  238,336,828

 

 

 

 

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

 

  38,531,629

  26,482,815

Other components of equity

 

  (16,044,453)

  (15,136,936)

Total equity attributable to equity holders of the parent

  40,729,760

  29,588,463

 

 

Notes

As  at

As  at

 

 

30 September 2021

31 March 2021

 

 

Unaudited

Audited

 

Liabilities

 

 

 

Non-current

 

 

 

Long term borrowings

 

147,709,597

142,905,717

Employee benefit obligations

 

  4,509,482

  4,708,447

Deferred tax liability

 

  8,823,414

  8,929,659

Non-current liabilities

 

  161,042,493

  156,543,823

 

 

 

 

Current

 

 

 

Trade and other payables

 

  17,212,896

  12,929,316

Employee benefit obligations

 

  1,520,140

  959,887

Current tax liabilities

 

  805,386

  393,028

Current portion of long term borrowings

 

  10,211,363

  24,403,033

Other current liabilities

 

23,534,202

  13,519,278

Current liabilities

 

53,283,987

  52,204,542

 

 

 

 

Total equity and liabilities

 

255,056,240  

238,336,828

 

(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 months

ended

For the six months ended

 

 

30 September 2021

30 September 2020

 

 

Unaudited

Unaudited

 

 

 

 

Income from operations

 

 

 

Revenue from services

 

121,284,962

88,675,643

Other operating income

 

1,271,458

1,070,303

 

 

122,556,420

89,745,946

 

 

 

 

Cost and expenses

 

 

 

Outsourced service cost

 

19,831,122

17,960,207

Employee benefits expense

 

48,194,012

34,138,255

Depreciation and amortisation

 

3,011,227

2,343,227

Other expenses

 

9,482,318

7,391,648

 

 

80,518,679

61,833,337

 

 

 

 

Operating profit

 

42,037,741

27,912,609

Finance income

 

453,702

590,691

Finance cost

 

  (4,555,815)

  (1,603,155)

Profit before tax

 

37,935,628

26,900,145

 

 

 

 

Income tax expense

 

3,612,806

3,363,846

Profit for the year attributable to equity holders of the parent

34,322,822

23,536,299

 

 

 

 

 

Earnings per share

9

 

 

Basic

 

  0.18

0.12

Diluted

 

  0.18

0.12

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 period

ended

For the six months ended

 

 

30 September 2021

30 September 2020

 

 

Unaudited

Unaudited

 

 

 

 

Profit after tax for the year

 

  34,322,822

  23,536,299

Other comprehensive income

 

 

 

Items that will be reclassified subsequently to the consolidated income statement

 

Exchange differences on translating foreign operations

  (907,517)

  728,954

Net other comprehensive (loss) that will be reclassified subsequently to consolidated income statement

  (907,517)

  728,954

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 be not be reclassified subsequently to consolidated income statement

  - 

  - 

Other comprehensive income/(loss) for the year

 

  (907,517)

  728,954

Total comprehensive income attributable to equity holders

33,415,305

24,265,253

 

 (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

Equity

Retained earnings

Total equity

 

Foreign currency translation reserve

Net defined benefit Liability

 
 
 

Balance as at 1 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

 -

-

 -

 -

-

 -

(162,131,146)

(162,131,146)

 

Transaction with owners

 -

 -

 -

 -

 -

 -

(162,131,146)

(162,131,146)

 

Profit for the year

 -

 -

 -

 -

 -

 -

48,936,28

48,936,283

 

Other comprehensive gain

 -

 -

 -

 -

2,141,313

42,032

 -

2,183,345

 

Total comprehensive income for the period

 -

 -

 -

 -

2,141,313

 42,032

48,936,283

51,119,628

 

Balance as at 31 March 2021

3,776,175

15,451,809

63,986

(1,049,386)

(15,866,598)

729,662

26,482,815

29,588,463

 

 

 (The accompanying notes are an integral part of the Consolidated 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 2021

 3,776,175

 15,451,809

  63,986

 (1,049,386)

 (15,866,598)

 729,662

 26,482,815

  29,588,463

Dividends

 -

  - 

 -

 -

  - 

 -

 (22,274,007)

 (22,274,007)

Transaction with owners

  - 

  - 

  - 

  - 

  - 

  - 

 (22,274,007)

(22,274,007)

Profit for the year

 -

  - 

 -

 -

  - 

 -

 34,322,822

  34,322,822

Other comprehensive loss

 -

  - 

  - 

  - 

 (907,517)

  - 

 -

 (907,517)

Total comprehensive income for the period

 

  - 

 

 - 

 

  - 

 

 - 

 

 (907,517)

 

  - 

 

 34,322,822

 

  33,415,305

Balance as at 30 September 2021

 3,776,175

 15,451,809

  63,986

 (1,049,386)

   (16,774,115)

729,662

  38,531,629

  40,729,760

                     

 

(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 period

ended

For the six months ended

 

 

30 September 2021

30 September 2020

 

 

 

 

(A) Cash flow from operating activities

 

 

 

Profit before tax

 

  37,935,627

  26,900,145

Adjustments

 

 

 

Depreciation and amortisation

 

  3,011,227

  2,343,227

Loss/(Profit) on disposal of property, plant and equipment

 

  (8,258)

  (2,064)

Trade receivables written-off/provision for doubtful debts

 

  602,061

  1,089,700

Sundry balances written back

 

  (235)

  (2,750)

Unrealised foreign exchange gain

 

  (1,040,091)

 (651,277)

Finance income

 

  (453,702)

 (590,691)

Finance cost

 

  3,868,829

  1,521,027

Interest cost on lease liability

 

  412,167

  82,128

Other borrowing cost at amortised cost

 

  274,819

  - 

 

 

  44,602,444

  30,689,445

 

 

 

 

Changes in operating assets and liabilities

 

 

 

(Increase)/ Decrease in trade and other receivables

 

 (3,941,087)

  (484,556)

(Increase)/ Decrease in other assets (current and non-current)

 

 (4,326,912)

  2,081,433

Increase / (Decrease) Non-current liabilities, trade payables & other current liabilities

  11,624,169

  (1,304,119)

(Decrease)/ Increase in employee benefit obligations

 

 293,709

  (9,053)

Cash generated from operations

 

 48,252,322

  30,973,150

Income taxes paid

 

 (3,201,599)

 (1,158,820)

Net cash generated from operating activities

 

 45,050,724

  29,814,330

 

 

 

 

(B) Cash flow for investing activities

 

 

 

Payments for purchase of property plant and equipment

 

  (997,864)

  (256,175)

Investment in fixed deposit (Net)

 

  (3,989,362)

 (3,256,262)

Proceeds from disposal of property, plant & equipment

 

  260,853

  2,258

Payments for purchase of other intangible assets

 

  (441,725)

 (505,703)

Interest received

 

  494,126

  585,282

Net cash used in investing activities

 

  (4,673,972)

  (3,430,600)

 

 

 

For the period

ended

For the six months ended

 

 

30 September 2021

30 September 2020

 

 

 

 

 

(C ) Cash flow from financing activities

 

 

 

Interest paid

 

 (3,868,829)

 (1,603,155)

Dividends paid to equity holders of the parent

 

 (22,274,007)

 (20,374,113)

Repayment of borowings and lease liability

 

 (19,046,499)

 (5,179,793)

Net cash used in financing activities

 

 (45,189,336)

 (27,157,061)

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

 

 (4,812,584)

 (773,331)

Cash and cash equivalents at the beginning of the year

 

51,378,899

45,147,784

Effect of exchange rate changes on cash

 

  96,326

 (166,022)

Cash and cash equivalents at the end of the year

 

  46,662,641

44,208,431

 

 

 

 

Cash and cash equivalents comprise

 

 

 

Cash in hand

 

  7,740

  13,801

Balances with banks in current account

 

42,917,962

44,194,630

Remittance in transit

 

  3,736,939

-

 

 

  46,662,641

44,208,431

 

 (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 2021 and 2020. 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 2021 and 2020.

 

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 10 November 2021.                           

 

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 2021 and 2020.

 

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 2021.

5.  GOODWILL

The net carrying amount of goodwill can be analysed as follows:

 

Particulars

Amount

Balance as at 1 April 2020

102,248,030 

Impairment loss recognized

-

Translation adjustment

  2,335

Balance as at 31 March 2021

  102,250,365

 

Particulars

Amount

Balance as at 01 April 2021

102,250,365

Translation adjustment

(1,420)

Balance as at 30 September 2021

102,248,945

 

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 2020

24,103,157

4,179,481

100,000

12,000,000

132,490

40,515,128

Additions

-

706,210

-

-

-

706,210

Disposals

-

-

-

-

-

-

Translation adjustment

2,612

83,645

-

-

-

86,257

Balance as at 31 March 2021

24,105,769

4,969,336

100,000

12,000,000

132,490

41,307,595

 

 

 

 

 

 

 

Accumulated amortisation

 

 

 

 

 

 

Balance as at 1 April 2020

24,103,157

3,722,162

-

-

-

27,825,319

Amortisation for the period

-

694,385

-

-

-

694,385

Disposals

-

-

-

-

-

  - 

Translation adjustment

2,612

79,562

-

-

-

82,174

Balance as at 31 March 2021

24,105,769

4,496,109

  - 

  - 

-

28,601,878

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment

 

 

 

 

 

 

Balance as at 1 April 2020

-

-

-

-

132,490

132,490

Impairment for the period

-

-

-

-

-

-

Disposals

-

-

-

-

-

-

Translation adjustment

-

-

-

-

-

-

Balance as at 31 March 2020

-

-

-

-

132,490

132,490

Carrying values as at 31 March 2021

-

473,227

100,000

12,000,000

-

12,573,227

 

Particulars

Customer contracts

Computer softwares

Patent

Trade mark

Intangibles under development

Total

Cost

 

 

 

 

 

 

Balance as at 01 April 2021

  24,105,769

  4,969,336

  100,000

  12,000,000

 

  132,490

  41,307,595

Additions

  - 

  363,870

  - 

  - 

  214,308

  578,178

Disposals

  - 

  - 

  - 

  - 

 (268,943)

  (268,943)

Translation adjustment

  (1,589)

  (57,775)

  - 

  - 

  (2,634)

  (61,998)

Balance as at 30 September 2021

  24,104,180

  5,275,431

  100,000

  12,000,000

 

75,221

  41,554,832

 

 

 

 

 

 

 

Accumulated amortisation

 

 

 

 

 

 

Balance as at 01 April 2021

  24,105,769

  4,496,109

  - 

  - 

 

  132,490

  28,734,368

Amortisation/impairment for the period

  - 

 

356,113

  - 

  - 

 

  - 

  356,113

Disposals

  - 

 

  - 

  - 

 

(132,490)

 

  (132,490)

Translation adjustment

  (1,589)

  (52,537)

  - 

  - 

 

-

  (54,126)

Balance as at 30 September 2021

  24,104,180

 

4,799,685

  - 

  - 

  - 

  28,903,865

Carrying values as at 30 September 2021

  - 

 

475,746

  100,000

  12,000,000

 

75,221

  12,650,967

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 improve-ments

Plant and machinery

Capital work in progress

Total

 

 

 

 

 

 

 

 

 

 10,104,372

  1,062,619

 1,366,518

  883,948

     396,132

  4,535,609

  2,274,010

  331,221

 20,954,429

  2,011,543

  65,076

  21,965

  48,436

 -

  198,516

  121,393

-

  2,466,929

  (256,417)

  (129)

 -

 -

 -

 -

  (21,213)

  (123,247)

  (401,006)

  246,417

  20,509

  25,986

  18,089

  8,173

  91,939

  42,077

  6,333

  459,523

  12,105,915

  1,148,075

1,414,469

  950,473

  404,305

  4,826,064

  2,416,267

 214,307

23,479,875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  6,599,071

  788,026

 1,028,580

  352,071

  43,674

  3,087,226

  1,913,081

 -

  13,811,729

Depreciation for the period

  2,036,286

  76,359

  91,142

  108,634

  49,068

  491,560

  126,306

 -

  2,979,355

Disposals (Net)

  (199,976)

  (129)

 -

 -

 -

 -

  (21,213)

 -

  (221,318)

Translation and other adjustments

  153,256

  15,229

  19,894

  8,483

  1,452

  67,231

  36,123

 -

  301,668

  8,588,637

  879,485

 1,139,616

  469,188

   94,194

  3,646,017

 2,054,297

 -

  16,871,434

Carrying values as at 31 March 2021

  3,517,278

  268,590

  274,853

  481,285

 310,111

  1,180,047

  361,970

214,307

  6,608,441

 

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 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

825,764

  24,697

  1,383

         - 

     - 

  48,076

   63,783

  34,162

997,865

Disposals/Transfer (Net)

 (32,775)

  - 

  - 

   - 

 (6,072)

  - 

     (21,825)

(214,307)

 (274,979)

Translation and other adjustment

 (144,504)

  (13,024)

  (15,976)

   (11,687)

 (4,971)

  (58,417)

    (26,826)

(140)

 (275,545)

Balance as at 30 September 2021

12,754,400

1,159,748

 1,399,876

 938,786

 393,262

4,815,723

2,431,399

34,022

23,927,216

 

 

 

 

 

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

 

 

 

 

Balance as at 01 April 2021

8,588,637

879,487

1,139,616

 469,187

94,194

3,646,016

2,054,298

  - 

16,871,435

Depreciation for the period

1,102,018

 41,743

36,816

51,081

24,283

271,378

60,579

 - 

1,587,898

Disposals (Net)

 (3,614)

  - 

  - 

(5,561)

(13,209)

  - 

(22,384)

Translation and other adjustments

 (106,838)

(9,834)

(12,709)

(5,979)

(1,258)

(44,133)

(22,487)

  - 

(203,238)

Balance as at 30 September 2021

9,580,203

911,396

1,163,723

514,289

111,658

3,873,261

2,079,181

  - 

18,233,711

Carrying values as at 30 September 2021

3,174,197

248,352

236,153

424,497

281,604

  942,462

352,218

  34,022

5,693,505

 

8.  SHORT TERM FINANCIAL ASSETS

Particulars

30 September 2021

31 March 2021

Security deposits

  28,386

  30,767

Restricted cash

  6,760,589

  6,444,738

Short term investments (fixed deposits with maturity less than 12 months)

  11,315,077

  9,550,799

Derivative financial instruments

  281,076

  151,913

Due from officers and employees

  42,010

  38,336

Others

  24,947

  65,371

 

18,452,085

16,281,924

 

 

 

 

         

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 2021 is as follows:

 

Basic earnings per share

Particulars

30 September 2021

30 September 2020

Profit attributable to shareholders

 

34,322,822

23,536,299

Weighted average numbers shares outstanding

190,130,008

190,130,008

Basic earnings per share (US$)

 

  0.18    

  0.12    

 

Diluted earnings per share

Particulars

30 September 2021

30 September 2020

Profit attributable to shareholders

 

34,322,822

23,536,299

Weighted average numbers shares outstanding

190,130,008

190,130,008

Diluted earnings per share (US$)

 

  0.18    

  0.12    

         

 

10.  LEASES

 

(a) Lease liabilities are presented in the statement of financial position as follows:

 

Particulars

30 September 2021

  31 March 2021

Current

2,230,659

1,424,940

Non-current

10,892,004

3,766,759

 

13,122,663

  5,191,699

 

(b) The following are amounts recognised in consolidated income statement:

 

Particulars

30 September 2021

31 March 2021

Depre ciation expenses of right-of-use

Interest Expense on the Lease Liability

  1,067,216

1,484,349

Interest expense on lease liability

412,167

529,756

Rent expenses*

 

96,680

7,167

Common area maintenance expenses

28,193

165,386

Total

1,604,256

2,186,658

*Rent expense in respect of Short Term Lease

 

(c) Right to use of assets as at 31 March 2021:

 

Particulars

Leased premises

  Gross block

 

Balance as at 1 April 2020

6,696,491

Additions during the year

1,009,919

Disposal

(306,301)

Translation adjustment

117,353

Gross block as at 31 March 2021

7,517,462

 

 

  Accumulated depreciation

 

Balance as at 1 April 2020

1,393,220

Depreciation for the period

1,484,349 

Disposal

(112,393)

Translation adjustment

32,615

Accumulated depreciation as at 31 March 2021

2,797,791 

Net block as at 31 March 2021

4,719,671

 

Particulars

Leased premises

Gross block as at 1 April 2021

7,517,462

 Additions during the year

8,971,723

 Translation adjustment

(110,590)

Gross block as at 30 September 2021

16,378,595

 

 

  Accumulated depreciation

 

Balance as at 1 April 2021

2,797,791

Depreciation for the period

1,067,216

Translation adjustment

(28,136)

Accumulated depreciation as at 30 September 2021

3,836,871

Net block as at 30 September 2021

12,541,724

 

(d)   The maturity analysis of the lease liabilities as of 30 September 2021, is as follows:

 

Payments falling due

Gross future minimum lease payments

 

30 September 2021

31 March 2021

Within 1 year

3,246,786

1,870,956

Later than 1 year but less than 5 years

8,385,746

3,670,800

More than 5 years

6,450,030

1,508,367

 

18,082,562

7,050,123

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 2021

30 September 2020

Transactions during the period ended

 

 

Short term employee benefits

 

 

Remuneration paid to directors

 

 

Chris de Putron

6,912

6,300

Mark De La Rue

6,912

6,300

Marc Vassanelli

20,736

18,899

 

 

 

Balances at the end of

 

 

Total remuneration payable

189,509

147,741

 

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 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

  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

  1,363,564

Earning before interest, tax, depreciation and amortisation (before rent adjustment)

  32,953,064

  10,075,558

  43,028,622

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

  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

  37,935,628

Income tax expense

  (2,042,704)

  (1,570,102)

  (3,612,806)

Profit after tax

  27,659,412

  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/-

 

 

30 September 2020

 

Business Process Outsource

Content delivery

Total

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**

** Includes "Right of Use" Assets added and recorded worth $270,081/-

 

Revenue from the following customer's amounts to more than 10% of consolidated revenue during the period presented.

30 September 2021

Revenue from 

Segment

Amount

Customer 1

Business Process Outsource

23,630,750

 

30 September 2020

Revenue from 

Segment

Amount

Customer 1

Business Process Outsource

12,959,751

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 2021

31 March 2021

 

 

 

Non-current assets

 

 

Loans and receivables

 

 

Security deposits

1,017,228

  686,922

Restricted cash

1,849,618

  1,398,071

Fixed deposit

2,684,432

  1,226,746

Current assets

 

 

Loans and receivables

 

 

Trade receivables

39,179,674

33,893,763

Cash and cash equivalents

46,662,641

  51,378,899

Restricted cash

6,760,589

  6,444,738

Security deposits

28,386

30,767 

Fixed deposits with banks

11,315,077

  9,550,799

Due from officers and employees

42,010

  38,336

Interest accrued on fixed deposit

24,947

  65,371

 

 

 

Fair value through profit and loss:

 

 

Derivative financial instruments

281,076

  151,913  

 

109,845,678

104,866,325

 

 

 

 

Financial liabilities

30 September 2021

31 March 2021

 

 

 

Non-current liabilities

 

 

Financial liabilities measured at amortized cost:

 

 

Long term borrowings

147,709,597

  142,905,717

Current liabilities

 

 

Financial liabilities measured at amortized cost:

 

 

Trade payables

17,212,896

  12,929,316

Current portion of long term borrowings

10,211,363

  24,403,033

Other current liabilities

23,534,202

  13,519,278

 

198,668,058

193,757,344

 

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 2021

Total

Fair value measurements at reporting date using

 

Level 2

Liabilities

(Notional amount)

 

 

Derivative instruments

 

 

 

Forward contracts (currency - US$/INR)

34,950,000

 

281,076

 

31 March 2021

Total

Fair value measurements at reporting date using

 

Level 2

Assets

(Notional amount)

 

 

Derivative instruments

 

 

 

Forward contracts (currency - US$/INR)

22,900,000

 

151,913

 

15.  COMMITMENT AND CONTINGENCIES

 

As at 30 September 2021 and 31 March 2021, the Group had a capital commitment of US$ 1,755,652 and US$ 344,537 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$ 103,568 and US$ 77,886 as on 30 September 2021 and 31 March 2021 respectively and in respect of interest on VAT amounts to US$ 9,423 as on 30 September 2021 (US$ 9,540 as on 31 March 2021).

 

Guarantees: As at 30 September 2021 and 31 March 2021, guarantees provided by banks on behalf of the group companies to the revenue authorities and certain other agencies, amount to approximately US$ 36,952 and US$ 36,412 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 2021 and 2020.

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 2021 and 2020.

 

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