IGC.U India Globalization Capital,

BETHESDA, Md., Nov. 17 /PRNewswire-FirstCall/ -- India Globalization Capital, Inc. (AMEX:IGC), (AMEX:IGC.WS), (AMEX:IGC.U), a U.S. based company developing infrastructure in India through its majority-owned subsidiaries Sricon Infrastructure Private Limited (Sricon) and Techni Bharathi Limited (TBL), filed its second quarter financial results, on Form 10-Q, for fiscal year 2009, which ended on September 30, 2008. For the Quarter Ending September 30, 2008, IGC reported revenue of approximately $10.5 million versus approximately $6.8 million for the pro forma revenue reported by the predecessor companies for the same period last year, a growth of 55%. The Company reported net income, before one-time non-cash expenses, of approximately $526,000, and basic and fully diluted Earnings Per Share (EPS), before one-time expenses, of approximately $0.06 (EPS). Inclusive of one-time non-cash expenses, the net income and EPS reported are approximately $72,000 and $0.01, respectively. For the six months ended September 30, 2008, IGC reported revenue of approximately $28.4 million; net income, before one-time non-cash expenses, of approximately $1.8 million; and EPS, before one-time expenses, of around $0.21 or approximately 6% of revenue. Inclusive of one-time expenses, IGC reported net income and EPS of approximately $1.4 million and $0.15 respectively. By comparison the predecessor companies reported revenue, for the six months ended September 30, 2007, of approximately $10.1 million, an increase in revenue of approximately 180%. Ram Mukunda, chief executive officer of IGC said: "Our September 2008 quarter was robust. Despite heavy monsoon rains and the adverse currency impact of the rupee versus the dollar, we posted a year-over-year growth in revenue of 55% in the quarter." Mr. Mukunda continued: "However, going forward, due to illiquidity in the U.S and the Indian credit markets, we are taking steps to adjust our business model and revising our previous guidance. The Indian banks funding our expansion have slowed down the extension of credit. As such, rather than continue to scale up our operations in the hopes that the capital and credit markets will improve in the near term, we have decided to conserve cash and preserve the relative strength of our balance sheet by scaling back our ambitious growth plans. Assuming no further credit tightening or strengthening of the dollar, we are lowering our fiscal 2009 revenue guidance to between $35 million to $40 million and our fiscal 2010 revenue to $45 million to $55 million with net earnings in the 6% to 8% range. We are currently evaluating a number of tactical ways to scale back growth in a way that best provides efficiency and preserves the vast opportunity before us." "We are convinced that the opportunity we see will not abate, and our goal is to be in the best possible position to once again accelerate growth when increased credit becomes available," added Mukunda. Highlights: -- Revenue for the six months ended September 2008 was approximately $28.4 million compared to pro forma revenue of $10.2 million for the six months ended September 2007, for the predecessor companies, an increase of about 180%. -- Operating Income was around 18.5% of revenue before one-time non-cash expenses, or 17 % inclusive of one-time non-cash expenses, for the six months ended September 2008. For the six months ended September 2008 operating income was approximately $4.8 million, inclusive of non-cash expenses, compared to approximately $1.8 million for the six months ended September 2007 for the predecessor companies, an increase of 164%. -- Income before taxes and before one-time expenses for the six months ended September 2008 was about $4.6 million versus $1.1 million for the six months ended September 2007 for the predecessor companies, an increase of 308%. -- As of September 30, 2008, IGC reported consolidated total assets of $60.7 million as compared to $67.6 million as of March 31, 2008. Some of the difference is attributed to the U.S. dollar strengthening against the Indian Rupee. The dollar rose by almost 15 percent between March 31, 2008 and September 30, 2008, and most of the Company's assets are accounted for in Indian Rupees. -- As of September 30, 2008 IGC had 8,780,107 shares of common stock outstanding. Conference Call IGC will hold a conference call to discuss its financial results for the quarter ending September 30, 2008. The call will be held on Monday, November 17, 2008 at 11:00 a.m. EST (8:00 a.m. PST) If you are interested in participating, please call one of the following numbers ten minutes prior to the starting time: 1-800-762-8973 (inside the U.S.) or 1-480-629-9041 (outside the U.S.). Ask for the India Globalization Capital Second Quarter Fiscal Year End 2009 Financial Results Conference Call (Conference ID # 3944097). An operator will check your name and organization. You will be asked to wait until the call begins. For those of you unable to join this earnings call, a playback of this call will be available via telephone from 2:00 p.m., Monday, November 17, 2008 until November 24, 2008 at 11:59 p.m., all times Eastern. The numbers for this replay service are 1-800-406-7325 or 1-303-590-3030 (outside the U.S.). Use Replay Pin Number 3944097, followed by the pound sign (#). About IGC Based in Bethesda, Maryland, IGC operates through two infrastructure companies in India, Sricon Infrastructure Private Limited ("Sricon") and Techni Bharathi, Limited ("TBL"). IGC owns sixty-three percent of Sricon and seventy-seven percent of TBL. IGC, through its subsidiaries, has three core businesses: (1) Highway and other heavy construction, (2) Mining & quarrying and (3) Civil construction and engineering of high-temperature plants. Most of IGC's operations are based in India. The Company has offices in Maryland, Mauritius, Nagpur, Cochin, Delhi and Bangalore. Copies of IGC's filings with the SEC containing information about IGC, its Indian operations and other relevant documents are available at no charge at the SEC's Internet site (http://www.sec.gov/). For more information about IGC, please visit the Company's web site at http://www.indiaglobalcap.com/. Forward-Looking Statements This press release may contain forward-looking statements. These statements reflect management's current views and are subject to risks and uncertainties that could cause actual results to differ materially from those projected, expressed or implied in these statements. Factors, which could cause actual results to differ, relate to: (i) the ability of the parties to successfully win new contracts, execute on contracts and business plan, (ii) our ability to raise additional capital and the structure of such capital including the exercise of warrants, and (iii) changes in the exchange rate between the US Dollar and the Indian Rupee. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Other factors and risks that could cause or contribute to actual results differing materially from such forward looking statements have been discussed in greater detail in the Company's Form 10-KSB. (1) The unaudited results of operations are not necessarily indicative of results of operations that may have actually occurred had the acquisitions taken place on the dates noted, or the future financial position or operating results of the Company. The results and adjustments are based upon available information and assumptions that the Company believes are reasonable. DATASOURCE: India Globalization Capital, Inc. CONTACT: Dhruva Kumar of India Globalization Capital, Inc., +1-301-983-0998, , Investors, Dave Gentry of RedChip Companies, Inc., 1-800-733-2447, Ext. 104, Web Site: http://www.indiaglobalcap.com/

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