Subex has reported a turnaround in Q3 earnings on the back of exceptional gains on restructuring of outstanding FCCBs. Following which, the stock hit the 10% upper circuit.
The company reported a net profit of Rs 41.87 crore for the quarter ended December 2009 as against net loss of Rs 15.74 crore in corresponding previous quarter. Subex achieved the turnaround on the back of an exceptional gain of Rs 30.49 crore (Rs 30.42 crore loss in previous period) arising on restatement of foreign currency convertible bonds and settlement of intra-group foreign currency loans and advances during the quarter.
Its other income increased by twenty-five fold to Rs 5.52 crore (Rs 22 lakh) during the quarter. However, net sales of the company declined by 25% to Rs 121 crore (Rs 161 crore) during the quarter.
The stock was frozen at the 10% upper limit of Rs 81.50. The counter recorded heavy volumes of around 1.79 million shares against the two-week average daily traded volume of around 0.45 million shares on the BSE.
The cost control measures taken by the company have also paid dividend during the quarter. The staff cost declined by 30% to Rs 66.39 crore (Rs 95.16 crore) during the quarter.
During the quarter, the company offered to restructure its outstanding FCCBs having a face value of $180 million by offering in exchange new FCCBs having a face value of $126 million. Pursuant to the offer, bonds with a face value of $141 million were exchanged for new bonds with a face value of $98.7 million. This has resulted in a reduction of liability of Rs 153 crore after adjusting for expense incurred.
According to a release issued by the company to the BSE today, director of the company, K Balachandran has resigned.
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