Subex announces successful conversion of FCCB Debt into Equity

India Infoline News Service | Mumbai | May 24, 2016 17:16 IST

Out of the total outstanding of Rs.492 cr, Rs.447 cr bonds have been converted to equity, thereby reducing the long term debt to insignificant levels.

Subex
Subex Ltd, a leading global provider of Business and Operations Support Systems (B/OSS) for Communications Service Providers, today announced its financial results for the year ended March 31, 2016.
FCCB conversion
Out of the total outstanding of Rs.492 cr, Rs.447 cr bonds have been converted to equity, thereby reducing the long term debt to insignificant levels.
On account of this conversion interest of Rs. 104 cr which was provided is now reversed, since it is no longer payable. Post the conversion the net worth of the company on consolidated basis is Rs. 727 cr as against `209 cr as at year end March 31, 2015.
Performance Highlights for the year ended March 31, 2016:
Revenue
Revenue for the year at Rs. 32,335 lacs.
Major thrust on Managed Services over the last few years growing from under 15% to above 35% to create sustainable platform based services with long term contracts.
New Business / Order booking
oUS$ 51million of new business won in FY16 as against US$ 45 million in FY15. Contracted revenue stands at all time high of US$140 million aided by long term Managed Services contracts.
oNew initiatives launched for platform based Analytics Services and IOT Security
Profitability
EBIDTA ex forex for the year at Rs.7,247 lacs
Profit after Tax (PAT)  after exceptional items for the year at Rs. 5,872 lacs
Surjeet Singh, Managing Director & CEO, Subex Limited said, “I am pleased to report that with relentless efforts over the last couple of years under the sound guidance of the board, Subex has been able to convert majority of its FCCB debt into equity. With this, the long term debt overhang and related interest cost on the balance sheet of the company is substantially removed. This was a complex process and is a significant milestone for future of Subex as this shall provide much needed avenues for investments in the core business and enable long term growth and enhance shareholder value."
"During the year we made good progress in achieving higher new business intake. We have also made progress in transitioning the business model to platform based managed services with over 50 percent of incremental business now from this segment. This has resulted in all time high constructed book of business with increased multi-year contracts. Our platform based analytics service RoC Insights, was well received by our key customers as we foray into making Subex a partner of choice for decision support services of our clients," he added.
 

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