February 01, 2022
To
The London Stock Exchange
10 Paternoster Square
London
EC4M 7LS
Dear Sir/Madam,
Sub: Subex Limited "The Company"- Outcome of the Board Meeting held on January 31, 2022
Please be informed that the agenda items summarized hereunder were discussed and approved at the Board Meeting held yesterday at Bengaluru:
1. Approval of the Unaudited Standalone and Consolidated Financial Results of the Company for the quarter ended December 31, 2021.
2. Appointment of Mr. Sumit Agarwal as the Chief Financial Officer (CFO) of the Company, designated as the Key Managerial Personnel (KMP), with effect from January 31, 2022.
Please find enclosed:
· The Unaudited Consolidated Financial Results of the Company for the quarter ended December 31, 2021.
We request you to take on record the aforesaid information.
Thanking you
For Subex Limited
Sd/-
Vinod Kumar Padmanabhan
Managing Director & CEO
DIN:06563872
| SUBEX LIMITED Registered office: Pritech Park - SEZ, Block-09, 4th Floor, B Wing, Survey No. 51-64/4, Outer ring road, Bellandur Village,Varthur Hobli, Bangalore -560 103 Statement of Unaudited Consolidated Financial Results for quarter and nine months ended December 31, 2021 ( ₹ in Lakhs) | |||||||
| | | Quarter ended | Year to date figures for the nine months ended | Year ended | |||
| | Particulars | December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | March 31, 2021 |
| | | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited |
| 1 | Revenue from operations | 8,774 | 8,630 | 9,388 | 25,464 | 27,587 | 37,203 |
| 2 | Other income | 69 | 97 | 106 | 837 | 302 | 474 |
| 3 | Total income (1+2) | 8,843 | 8,727 | 9,494 | 26,301 | 27,889 | 37,677 |
| | Expenses | | | | | | |
| | Employee benefits expense (Refer note 4) | 5,488 | 5,442 | 5,256 | 16,037 | 14,703 | 19,720 |
| | Finance costs | 88 | 33 | 38 | 162 | 251 | 296 |
| | Depreciation and amortization expense | 252 | 246 | 424 | 740 | 1,155 | 1,378 |
| | Other expenses | 2,483 | 2,198 | 2,097 | 6,014 | 5,349 | 7,633 |
| 4 | Total expenses | 8,311 | 7,919 | 7,815 | 22,953 | 21,458 | 29,027 |
| | | | | | | | |
| 5 | Profit before exceptional items and tax (3-4) | 532 | 808 | 1,679 | 3,348 | 6,431 | 8,650 |
| |
Exceptional items Provision for service tax receivable Gain on termination of lease agreement |
- |
- |
- |
- |
(267) |
(267) |
| | - | - | - | - | 554 | 554 | |
| 6 | Total exceptional items | - | - | - | - | 287 | 287 |
| | | | | | | | |
| 7 | Net profit before tax (5+6) | 532 | 808 | 1,679 | 3,348 | 6,718 | 8,937 |
| 8 | Tax expense, net Current tax charge Provision - foreign withholding taxes (Refer note 5) Deferred tax (credit)/ charge (including MAT credit entitlement) (Refer note 6) | | | | | | |
| | 160 | 164 | 49 | 416 | 57 | 696 | |
| | 281 | 162 | 208 | 508 | 940 | 399 | |
| | (117) | - | 551 | 386 | 2,109 | 2,670 | |
| | Total tax expense | 324 | 326 | 808 | 1,310 | 3,106 | 3,765 |
| | | | | | | | |
| 9 | Net profit for the period/ year (7-8) | 208 | 482 | 871 | 2,038 | 3,612 | 5,172 |
| 10 | Other comprehensive income/ (loss) net of tax expense Items that will be reclassified subsequently to profit or loss: Net exchange differences (loss)/ gain on translation of foreign operations
Items that will not be reclassified subsequently to profit or loss: Re-measurement loss on defined benefit plan | | | | | | |
| |
(54) |
(33) | 455 | 63 | 575 | 636 | |
| |
(35) |
(67) |
(14) |
(105) |
(38) |
(12) | |
| | Total other comprehensive (loss)/ income | (89) | (100) | 441 | (42) | 537 | 624 |
| | | | | | | | |
| 11 | Total comprehensive income for the period/ year (9+10) | 119 | 382 | 1,312 | 1,996 | 4,149 | 5,796 |
| 12 | Paid up equity share capital | 28,100 | 28,100 | 28,100 | 28,100 | 28,100 | 28,100 |
| | [face value of ₹ 5 (March 31, 2021: ₹ 5)] | | | | | | |
| 13 | Other equity | - | - | - | - | - | 26,755 |
| 14 | Earnings per share (of ₹ 5/- each) (not annualised in case of the interim periods) | | | | | | |
| | - Basic | 0.04 | 0.09 | 0.16 | 0.37 | 0.67 | 0.96 |
| | - Diluted | 0.04 | 0.09 | 0.16 | 0.37 | 0.66 | 0.94 |
|
1 | Notes: The above results have been reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on January 31, 2022. 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. The financial results of Subex Limited (Standalone information): ( in Lakhs) | |||||||
| 2 | ||||||||
| 3 | ||||||||
| | | Quarter ended | Year to date figures for the nine months ended | Year ended | ||||
| | Particulars | December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | March 31, 2021 | |
| | | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | |
| | Total income Net (loss)/ profit before tax Net (loss)/ profit for the period/ year Total comprehensive (loss)/ income for the period/ year | 2,080 (91) (91) (99) | 1,559 49 49 32 | 510 125 129 127 | 5,210 227 227 202 | 2,937 1,465 1,465 1,460 | 5,510 2,651 2,622 2,622 | |
| 4 | Employee benefits expenses for the quarter ended December 31, 2021, September 30, 2021 and December 31, 2020 are net of reversal of provision no longer required, in respect of employee incentives, amounting to ₹ 184 Lakhs, ₹ 327 Lakhs and ₹ 43 Lakhs, respectively, and for the nine months ended December 31, 2021 and December 31, 2020 amounting to ₹ 786 Lakhs and ₹ 333 Lakhs, respectively and for the year ended March 31, 2021 amounting to ₹ 333 lakhs. | |||||||
| 5 | Represents reversal/provision in respect of foreign withholding taxes deducted/ deductible by the overseas customers of the Group. Considering the expected utilisation of foreign withholding taxes, provision of ₹ 723 Lakhs made during the earlier quarters, has been reversed during the year ended March 31, 2021. | |||||||
| 6 | Deferred tax charge/(credit), comprises of 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. Effective April 1, 2021 considering the favourable order received, no additional liability is created in respect of aforesaid tax benefits. | |||||||
| 7 | 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. | |||||||
| 8 | The full impact of COVID - 19 still remains uncertain and could be different from the estimates considered while preparing these consolidated financial results. The Group shall continue to closely monitor any material changes to future economic conditions. | |||||||
| 9 | The US Federal government in the wake of COVID 19 pandemic provided support to business through Paycheck Protection Program (PPP). Subex Inc. obtained a benefit under this scheme for ₹600 Lakhs during May 2020. During the nine months period ended December 31, 2021, Subex Inc. obtained complete waiver of the loan amount from Small Business Administration, United States government agency and accordingly the loan and interest accrued thereon was recognised as other income. | |||||||
| 10 | The Board of Directors of the Company in its meeting held on October 28, 2021 has approved the restructuring of the business, subject to all requisite approvals, wherein the business carried out by Subex Assurance LLP will be transferred to Subex Limited on a 'going concern' basis excluding Developed Technology and Investment in subsidiaries. The aforesaid restructuring is being carried out to achieve higher operational efficiencies upon integration and consolidation of business in the listed entity. The Company has sought approval of shareholders through postal ballot notice dated January 17, 2022 and the result of e-voting will be announced on or before Friday, February 25, 2022. | |||||||
| 11 | On December 6, 2021, the Group experienced a cybersecurity incident related to ransomware. The Group could contain the incident in a timely basis and has also ensured that all traces of the infection are completely cleared from the network. All affected systems were restored and brought back to normalcy in the order of priority. The management has assessed the impact of the incident on the control environment and the financial statement process and conclude there was no material impact on the financial results. Since then, the Group has also been focused on implementing significant improvements to its cyber and data security systems to safeguard from such risks in the future. | |||||||
|
Place: Bengaluru Date: January 31, 2022 |
For further details on the results, please visit our website: www.subex.com | |
Vinod Kumar Padmanabhan Managing Director & CEO | |||||
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