While the formula might not turn us all into the next Richard Branson, the combination of intelligence, a bursting contacts’ book, ambition, vision and a drop of good luck can definitely help put us on a pathway to success.
But are these ingredients really enough to see you succeed? In today’s business environment – with constantly shifting social, economic and technological priorities – one element that’s vital, but often overlooked, is change. The willingness and ability to embrace it with arms wide open is crucial.
It might be plain stubbornness, an aversion to risk, blind sightedness, pressure from the board, or resistant employees, but many business people fail to overlook the need to implement changes which could make the difference between whether their company is listed on the FTSE 100 or struggling to survive.
Lateral thinking, or the ability to think outside of the box, is the difference between survival and death for a business – Keshav Murugesh
The experiences of those who are brave enough to adopt change show there are huge financial and competitive advantages to be gained.
Invest in change
“Innovation is the most necessary ingredient in today’s dynamic world,” according to Karan Chanana, CEO of Amira Nature Foods Ltd, the first family owned Indian company to list on the New York Stock Exchange, with a total revenue of $547.3m.
“It is like air to humans, every breath of innovation survives and thrives,” he said.
Founded in 1915 as a small family-run trading company, Amira went on to become India’s first fully-automated rice milling factory in 1993. By investing in a processing plant in Gurgaon, near New Delhi, Chanana refocused on premium rice products, which have a long shelf life, and organic products including rice, lentils and beans, and spices.
Chanana concedes that business people have different thresholds for change but believes everyone must accept that at some point they’ll have to take a risk and enact change.
He believes that in business, challenges are a part of everyday life. “Anyone who believes that business or life will be a smooth ride is living in a fool’s paradise.”
Make or break
“Lateral thinking, or the ability to think outside of the box, is the difference between survival and death for a business,” said Keshav Murugesh, CEO of WNS, a leading Indian outsourcing company based in Mumbai.
He is known in his company as the “the turnaround guy”, having built a reputation for improving an ailing company’s fortunes at Syntel before joining WNS four years ago. In that time, he has doubled the company’s market cap to $1.1b and revived its declining fortunes.
Murugesh believes companies stagnate because leaders are unable to push themselves out of their comfort zone and challenge the status quo.
“It’s about the fear of failure, the requirement for new technology, and the cost of new investment,” he said. “But people who can make these changes in a planned manner see success.”
But, he said, people have to remember: “There is no such thing as failure, only some steps between where you are and where you aim to be. It’s about planning, motivating and leading people, and also an element of luck which every CEO needs to have.”
Size matters
“When it comes to change, size matters,” according to John Brash, founder and CEO of Brash Brands, a brand consultancy headquartered in Dubai whose clients include The Burj Khalifa.
“On the whole, larger organisations do take longer to effect change. Approval processes are lengthier, plus the sheer volume of people to communicate with will naturally take longer,” Brash said.
As an example he cites Dubai’s Dnata, the world’s fourth biggest combined air services provider which has a footprint in 73 airports in 37 countries and has more than 20,000 employees. Dnata embarked on a complete rebranding exercise in 2011 as a result of many acquisitions which had led to it quadrupling in size in just six years.
Brash said: “The new brand strategy, vision, mission and values needed to be communicated to over 20,000 people.”
He acknowledges, however, that some business leaders find change a painful process: “Whilst some business owners may have the desire to innovate, the process as a whole can seem overwhelming. If they are doing well whilst doing the same thing some can be reluctant to rock the boat. It’s myopia of the market they are in.”
Social and digital change
Going forward, Brash believes that businesses must adapt to new forms of modern disruption such as social media, cloud computing, 3-D printing, technology and popular new business models that involve mobile apps such as Uber, the taxi service.
In the future, he said, the chief marketing officer will become an important decision-maker, on par with the CEO of a company because of the implications to a business of digital innovation and the impact of social media. “I want to understand how Generation Y thinks and acts,” he said, “because they are the customers of the future.”
One way WNS keeps innovation at the forefront of their business strategy is by leading an ideas division called Wincubate, where employees are encouraged to contribute new thinking. The team with the most promising concept wins $250,000 (excluding people costs) to launch their programme. After 18 months the decision is made on whether to create a new division to develop that idea as a business proposition, in which case the team members receive a 26% stake in the new company.
Brash said: “Without consistent lateral thinking any business will start to slow down over time. Younger, hungrier talent will come to the market and erode your share through their innovative methods.
“Many companies can get caught up watching their competition, rather than keeping pace with their consumers, especially the constantly evolving Gen Y.”
After all, as Stephen Hawking said, “intelligence is the ability to adapt to change”.
Brash said: “Without consistent lateral thinking any business will start to slow down over time. Younger, hungrier talent will come to the market and erode your share through their innovative methods.
“Many companies can get caught up watching their competition, rather than keeping pace with their consumers, especially the constantly evolving Gen Y.”
After all, as Stephen Hawking said, “intelligence is the ability to adapt to change”.
Those of you who are familiar with the Amira Group may have heard of the phrase “Food Connect”. Food Connect is the idea that food lies at the very essence of bonding, and that great cuisine has the unique ability to bring together people and cultures all over the world through the universal language of food. Food Connect is connecting people with the language of food – an Amira ideology, vision and mission.
The use of food as a cultural and diplomatic tool is not a new thing however, and in recent years even national governments have realized the power food can have as a tool of cultural diplomacy. One example of this was the ‘Global Thai Program’. Launched in 2002 as the first government led culinary development initiative, the programme built Thai restaurants around the world and launched projects that spread knowledge and promoted Thai cuisine as a way of promoting the culture and economy of Thailand. More recently, the Malaysian government embarked on a programme of culinary diplomacy in 2010, recruiting world-renowned celebrity chefs including Rick Stein and Norman Musa as a way of increasing recognition of Malaysian cuisine abroad.
The power of food to unite cultures is not something that is solely the provinces of national governments, however, and there are several prominent examples of the power of food to build cultural bridges.
Karan Chanana – Karan A Chanana
One well-known example includes the rise of Indian food in the UK. Restaurants serving Indian and South Asian cuisine first became popular in the UK as people from South Asia began immigrating to the country in large numbers during the 1950s and 1960s, with many of the new immigrants setting up restaurants serving their national cuisine. While these restaurants initially began as a way of catering to local immigrant communities, they soon rapidly expanded in popularity amongst Britons of all ethnic backgrounds, with many chefs tailoring their menus to become more adaptable to British cultural palates, and creating distinctive new British-Indian dishes in the process. Such is the role that food has played into the integration of the British Asian community that in 2001, the then British Foreign Secretary Robin Cook declared Chicken Tikka Masala as a “true national dish”. This is rather unique as Indian Restaurants in the UK serve food from the Indian Sub Continent creating a unification of the subcontinent with the language of food.
Through the recent establishment of the Amira Foundation, our company’s charitable foundation, we aim to take the power of Food Connect a step further. The Amira Foundation is, at its core, a food education charity through which we hope to educate people around the world on healthy eating, with a focus on nutrition. It is our ultimate mission, however, for the Amira Foundation to work as an extension of our Food Connect and to act as a channel through which we can foster relationships and raise awareness of international hunger and nutrition, all through the common language of food.
Amira Nature Foods Ltd (the “Company;” or “Amira”) (NYSE: ANFI), a leading global provider of branded, packaged Indian specialty rice, today reported financial results for its fiscal 2015 full year and fourth quarter ended on March 31, 2015.
FY 2015 Financial Highlights versus FY 2014:
Revenue grew 27.8% to $699.4 million compared to $547.3 million
Adjusted EBITDA increased 31.9% to $99.5 million compared to $75.5 million
Adjusted EBITDA margin of 14.2%
Adjusted profits after tax was $54.3 million compared to $41.0 million
Adjusted earnings per share (“EPS”) was $1.51 compared to $1.14
Fourth Quarter 2015 Financial Highlights versus Fourth Quarter 2014:
Revenue grew 21.6% to $226.8 million compared to $186.6 million
Adjusted EBITDA increased 25.1% to $33.0 million compared to $26.4 million
Adjusted EBITDA margin of 14.5%
Adjusted profits after tax was $18.6 million compared to $16.8 million
Adjusted earnings per share (“EPS”) was $0.52 compared to $0.47
Reported results and other information herein are preliminary and not final until the filing of the Company’s annual report on Form 20-F with the Securities and Exchange Commission and therefore remain subject to adjustment.
Karan A Chanana, Amira’s Chairman and Chief Executive Officer, stated, “Our strong fiscal fourth quarter and full year performance reflects increased demand for our products across categories and geographies. We are seeing revenue growth around the world – in India, our important home market, and across the emerging markets geographies of Middle East, Africa and Asia. We are also seeing signs of continued strength in our smaller, but rapidly expanding developed world business, where we entered into new relationships in the UK, Continental Europe and the United States. ”
Bruce Wacha, Amira’s Chief Financial Officer, added, “During fiscal 2015, we generated record full year and quarterly revenue, adjusted EBITDA and adjusted EPS which represents eleven consecutive quarters of double digit revenue and profit growth as a public company. Our growth in the fourth quarter was driven largely by volume gains as we build out our distribution around the globe and capitalize on the continued demand for healthy, better for you products such as our premium, specialty rice. Going forward, we continue to see many opportunities in India and around the world to further grow our business and create value for our shareholders.”
Full Year Fiscal 2015 Results
Revenue for the full year of fiscal 2015 increased 27.8% to $699.4 million, compared to $547.3 million in fiscal 2014. The revenue increase was primarily due to increased sales volume and product mix in India and internationally. Sales in India increased 28.0% to $286.8 million, while sales outside of India, or international sales, increased 27.7% to $412.6 million. Amira branded and third party branded sales increased 38.6% to $662.4 million and institutional sales decreased $32.4 million to $36.9 million.
Adjusted EBITDA increased $24.1 million or 31.9% to $99.5 million and Adjusted EBITDA margin increased to 14.2%. Adjusted profit after tax increased by 32.4% to $54.3 million for fiscal 2015 compared to $41.0 million in the year ago period. Adjusted EPS increased 32.4% to $1.51 per share from $1.14 per share in the prior year period. The Company’s effective tax rate was 17.4% for the period compared to 19.6% for the prior year period. A reconciliation of adjusted EBITDA, adjusted profit after tax and adjusted EPS is provided in the “Non-IFRS Financial Measures” section of this release.
Fourth Quarter Fiscal 2015 Results
Revenue for the fourth quarter of fiscal 2015 increased 21.6% to $226.8 million, compared to $186.6 million for same period in fiscal 2014. Adjusted EBITDA increased $6.6 million or 25.1% to $33.0 million and Adjusted EBITDA margin increased to 14.5%. Adjusted profit after tax increased by 10.9% to $18.6 million for the three months ended March 31, 2015 compared to $16.8 million in the year ago period. Adjusted EPS increased 11.1% to $0.52 per share from $0.47 per share in the prior year period. The Company’s effective tax rate was 18.0% for the period compared to 15.0% for the prior year period. A reconciliation of adjusted EBITDA, adjusted profit after tax and adjusted EPS is provided in the “Non-IFRS Financial Measures” section of this release.
Balance Sheet and Cash Flow Highlights
As of March 31, 2015, the Company’s cash and cash equivalents were $46.5 million and adjusted net working capital was $365.4 million. Net debt (after deducting cash and cash equivalents) was $164.2 million and Net debt/Adj. EBITDA was 1.6x. As of March 31, 2015, inventories were $262.3 million compared to $255.0 as of March 31, 2014, trade receivables were $130.4 million, an increase of $49.5 million from $80.9 million, trade payables were $34.0 million, a decrease of $7.2 million from $41.2 million. Total debt was $210.6 million, an increase of $25.8 million from $184.8 million. Reconciliations of adjusted net working capital and net debt to the IFRS measures of working capital and total current and non-current debt, respectively, are provided in the “Non-IFRS Financial Measures” section of this release.
Fiscal 2016 Outlook
The Company expects double digit fiscal 2016 revenue and adjusted EBITDA growth and maintains its long-term guidance previously provided to the investment community of $1 billion of revenue and $150 million of Adjusted EBITDA. The Company’s guidance is based on foreign exchange rates as of March 31, 2015.
Conference Call
The Company will hold an investor call today at 8:30 a.m. Eastern time. The dial-in number for this conference call is (877) 407-3982 for North American listeners and (201) 493-6780 for international listeners. Live audio of the conference call will be simultaneously webcast on the investor relations section of the Company’s website at www.amira.net.
An audio replay will be available following the completion of the conference call by dialing (877) 870-5176 for North American listeners or (858) 384-5517 for international listeners; conference ID 13613515. The webcast of the teleconference will be archived and available on the Company’s website.
About Amira Nature Foods Ltd
Founded in 1915, Amira has evolved into a leading global provider of branded packaged Indian specialty rice, with sales in over 60 countries today. The Company primarily sells Basmati rice, which is a premium long-grain rice grown only in certain regions of the Indian sub-continent, under its flagship Amira brand as well as under other third party brands. Amira sells its products through a broad distribution network in both the developed and emerging markets. The Company’s global headquarters are in Dubai, United Arab Emirates, and it also has offices in India, Malaysia, Singapore, Germany, the United Kingdom, and the United States. Amira Nature Foods Ltd is listed on the New York Stock Exchange (NYSE) under the ticker symbol “ANFI.” For more information please visit www.amira.net.
Reported results and other information herein are preliminary and not final until the filing of the Company’s annual report on Form 20-F with the Securities and Exchange Commission and therefore remain subject to adjustment. The financial results provided may be subject to adjustment as a result of the completion of audit procedures by our independent registered public accounting firm as part of the annual audit they perform over the annual audit procedures they perform in connection with the Company’s financial statements for the fiscal year ended March 31, 2015. The preparation of the preliminary results requires management to make estimates and assumptions that affect the reporting period. Actual results could vary from these estimates.
Cautionary Note on Forward-Looking Statements
This release contains forward-looking statements within the meaning of the U.S. federal securities laws. These forward-looking statements generally can be identified by phrases such as that we or our members of management “believe,” “expect,” “anticipate,” “foresee,” “forecast,” “estimate” or other words or phrases of similar import. Specifically, these statements include, among other things, statements that describe our expectations for the growth of our business, expansion into new geographic markets, maintaining and expanding our relationship with key retail partners, the financial impact of new sales contracts on our revenue, our plans to make significant capital expenditures, and other statements of management’s beliefs, intentions or goals. It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on our results of operations, financial condition, or the price of our ordinary shares. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements, including but not limited to our ability to penetrate and increase the acceptance of our products in new geographic markets; our ability to perform our agreements with customers and further develop our relationships with key retail partners; our ability to recognize revenue from our contracts; continued competitive pressures in the marketplace; our reliance on a few customers for a substantial part of our revenue; our ability to implement our plans, forecasts and other expectations with respect to our business and realize additional opportunities for growth; and the other risks and important factors contained and identified in our filings with the Securities and Exchange Commission. All forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by these risk factors. Since we operate in an emerging and evolving environment and new risk factors and uncertainties emerge from time to time, you should not rely upon forward-looking statements as predictions of future events. Except as required under the securities laws of the United States, we undertake no obligation to update any forward-looking or other statements herein to reflect events or circumstances after the date hereof, whether as a result of new information, future events or otherwise.
Amira Nature Foods Ltd
Condensed Consolidated Statements of Financial Position
(Amounts in USD)
As at March 31, 2015 (unaudited)
As at March 31, 2014
ASSETS
Non-current
Property, plant and equipment
$
22,556,188
$
23,284,918
Goodwill
1,405,057
1,727,338
Other intangible assets
1,737,003
2,262,731
Other long-term financial assets
396,076
485,731
Total non-current assets
$
26,094,324
$
27,760,718
Current
Inventories
$
262,297,532
$
254,952,549
Trade receivables
130,426,136
80,882,986
Derivative financial assets
638,467
2,352,886
Other financial assets
9,933,742
9,768,514
Prepayments
19,610,778
8,361,244
Other current assets
1,955,834
765,655
Cash and cash equivalents
46,460,922
37,606,098
Total current assets
$
471,323,411
$
394,689,932
Total assets
$
497,417,735
$
422,450,650
EQUITY AND LIABILITIES
Equity
Share capital
$
9,120
$
9,115
Share premium
82,896,596
82,804,750
Other reserves
(5,929,086
)
(3,312,575
)
Retained earnings
115,012,408
74,334,687
Equity attributable to shareholders of the Company
$
191,989,039
$
153,835,977
Equity attributable to non-controlling interest
27,630,313
18,005,030
Total equity
$
219,619,352
$
171,841,007
Liabilities
Non-current liabilities
Defined benefit obligations
$
331,041
$
246,548
Debt
1,465,707
2,739,414
Deferred tax liabilities
7,709,106
6,666,270
Total non-current liabilities
$
9,505,854
$
9,652,232
Current liabilities
Trade payables
$
34,007,468
$
41,197,158
Debt
209,174,216
182,103,347
Current tax liabilities (net)
15,018,168
9,644,944
Derivative financial Liability
280,560
–
Other financial liabilities
6,961,163
6,031,593
Other current liabilities
2,850,955
1,980,369
Total current liabilities
$
268,292,530
$
240,957,411
Total liabilities
$
277,798,384
$
250,609,643
Total equity and liabilities
$
497,417,736
$
422,450,650
Note: Reported results and other information herein are preliminary and not final until the filing of the Company’s annual report on Form 20-F with the Securities and Exchange Commission and therefore remain subject to adjustment.
Amira Nature Foods Ltd
Condensed Consolidated Statements of Profit or Loss
(Amounts in USD)
Fiscal years ended
March 31, 2015 (unaudited)
March 31, 2014
March 31, 2013
Revenue
$
699,390,811
547,344,368
$
413,682,574
Other income
186,404
160,064
94,368
Cost of materials
(618,128,135
)
(454,123,161
)
(347,341,159
)
Change in inventory of finished goods
61,611,980
39,859,583
27,594,211
Employee benefit expenses
(11,885,736
)
(11,642,833
)
(5,553,197
)
Depreciation and amortization
(2,352,649
)
(2,064,264
)
(1,943,846
)
Freight, forwarding and handling expenses
(16,508,963
)
(23,359,177
)
(20,985,039
)
Other expenses
(23,628,011
)
(22,855,617
)
(14,676,910
)
$
88,685,701
73,318,963
$
50,871,002
Finance costs
(34,316,448
)
(25,859,231
)
(21,751,614
)
IPO expenses
–
–
(1,750,082
)
Finance income
2,256,120
2,766,518
802,146
Other gains and (losses)
5,535,074
(2,800,475
)
(654,852
)
Profit before tax
$
62,160,448
47,425,775
$
27,516,600
Income tax expense
(10,791,342
)
(9,293,071
)
(8,267,562
)
Profit after tax for the year
$
51,369,106
38,132,704
$
19,249,038
Profit after tax for the year attributable to:
Shareholders of the Company
40,669,867
29,956,327
15,056,309
Non-controlling interest
10,699,239
8,176,377
4,192,729
Earnings per share
Basic earnings per share
$
1.42
1.04
$
0.63
Diluted earnings per share
$
1.41
1.04
$
0.63
Note: Reported results and other information herein are preliminary and not final until the filing of the Company’s annual report on Form 20-F with the Securities and Exchange Commission and therefore remain subject to adjustment.
Amira Nature Foods Ltd
Condensed Consolidated Statements of Comprehensive Income
(Amounts in USD)
Fiscal years ended
March 31, 2015 (unaudited)
March 31, 2014
March 31, 2013
Profit after tax for the year
$
51,369,106
$
38,132,704
$
19,249,038
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss:
Re-measurement of defined benefit obligation:
Current year gain/(loss)
14,947
6,290
30,875
Income tax
(5,173
)
(2,138
)
(10,495
)
9,774
4,152
20,380
Items that may be reclassified subsequently to profit or loss:
Available for sale financial assets:
Current year gain/(loss)
44,290
(13,414
)
7,416
Reclassification to profit or loss
–
(2,058
)
–
Income tax
(14,951
)
4,812
(2,520
)
29,339
(10,660
)
4,896
Cash flow hedging reserve:
Current year gain/(loss)
6,585,277
(8,512,091
)
(1,160,394
)
Reclassification to profit or loss
(7,478,688
)
8,917,446
1,628,914
Income tax
304,136
(137,780
)
(146,820
)
(589,275
)
267,575
321,700
Currency translation reserve
(4,918,155
)
(12,986,175
)
(4,524,299
)
Other comprehensive income/(loss) for the year, net of tax
$
(5,468,317
)
$
(12,725,108
)
$
(4,177,323
)
Total comprehensive income/(loss) for the year
$
45,900,789
$
25,407,596
$
15,071,715
Total comprehensive income/(loss) for the year attributable to:
Shareholders of the Company
$
36,275,641
$
19,730,696
$
11,697,741
Non-controlling interest
$
9,625,148
$
5,676,900
$
3,373,974
Note: Reported results and other information herein are preliminary and not final until the filing of the Company’s annual report on Form 20-F with the Securities and Exchange Commission and therefore remain subject to adjustment.
Amira Nature Foods Ltd
Condensed Consolidated Statements of Changes in Equity (unaudited)
(Amounts in USD)
Other reserves
Share capital
Share premium
Share-based compensation reserve
Reserve for available for sale financial assets
Currency translation reserve
Cash flow hedging
Reserve
Restructuring reserve
Retained earnings
Equity attributable to shareholders of the Company
Equity attributable to
Non-controlling interest
Total equity
Balance as at April 1, 2012
$
100
$
—
$
—
$
(25,496
)
$
(1,945,447
)
$
—
$
9,398,927
$
29,302,329
$
36,730,413
$
8,954,156
$
45,684,569
Issue of shares (net of issuance cost)
9,000
82,639,766
—
—
—
—
—
—
82,648,766
—
82,648,766
Issue of shares
11
44,160
—
—
—
—
—
—
44,171
—
44,171
Share-based compensation
—
—
183,514
—
—
—
—
—
183,514
—
183,514
Profit after tax for the year
—
—
—
—
—
—
—
15,056,309
$
15,056,309
4,192,729
$
19,249,038
Other comprehensive income /(loss) for the year
—
—
—
3,935
(3,637,536
)
258,647
—
16,386
$
(3,358,568
)
(818,755
)
$
(4,177,323
)
Total comprehensive income/(loss) for the year
$
—
$
—
$
—
$
3,935
$
(3,637,536
)
$
258,647
$
—
$
15,072,695
$
11,697,741
$
3,373,974
$
15,071,715
Balance as at March 31, 2013
$
9,111
$
82,683,926
$
183,514
$
(21,561
)
$
(5,582,983
)
$
258,647
$
9,398,927
$
44,375,024
$
131,304,605
$
12,328,130
$
143,632,735
Balance as at April 1, 2013
$
9,111
$
82,683,926
$
183,514
$
(21,561
)
$
(5,582,983
)
$
258,647
$
9,398,927
$
44,375,024
$
131,304,605
$
12,328,130
$
143,632,735
Issue of shares
4
120,824
—
—
—
—
—
—
120,828
—
120,828
Share-based compensation
—
—
2,679,848
—
—
—
—
—
$
2,679,848
—
$
2,679,848
Profit after tax for the year
—
—
—
—
—
—
—
29,956,327
$
29,956,327
8,176,377
$
38,132,704
Other comprehensive income /(loss) for the year
—
—
—
(8,566
)
(10,435,418
)
215,017
—
3,336
$
(10,225,631
)
(2,499,477
)
$
(12,725,108
)
Total comprehensive income/(loss) for the year
$
—
$
—
$
—
$
(8,566
)
$
(10,435,418
)
$
215,017
$
—
$
29,959,663
$
19,730,696
$
5,676,900
$
25,407,596
Balance as at March 31, 2014
$
9,115
$
82,804,750
$
2,863,362
$
(30,127
)
$
(16,018,401
)
$
473,664
$
9,398,927
$
74,334,687
$
153,835,977
$
18,005,030
$
171,841,007
Balance as at April 1, 2014
$
9,115
$
82,804,750
$
2,863,362
$
(30,127
)
$
(16,018,401
)
$
473,664
$
9,398,927
$
74,334,687
$
153,835,977
$
18,005,030
$
171,841,007
Issue of shares
9
130,032
1,785,704
–
–
–
–
–
1,915,745
–
1,915,745
Share-based compensation
(4
)
(38,186
)
–
–
–
–
–
(38,190
)
–
(38,190
)
Profit after tax for the year
–
–
–
–
–
–
–
40,669,867
40,669,867
10,699,239
51,369,106
Other comprehensive income /(loss) for the year
–
–
–
23,576
(3,952,127
)
(473,664
)
–
7,854
(4,394,361
)
(1,073,957
)
(5,468,317
)
Total comprehensive income/(loss) for the year
$
–
$
–
$
–
$
23,576
$
(3,952,127
)
$
(473,664
)
$
–
$
40,677,721
$
36,275,506
$
9,625,283
$
45,900,788
Balance as at March 31, 2015
$
9,120
$
82,896,596
$
4,649,066
$
(6,551
)
$
(19,970,528
)
$
–
$
9,398,927
$
115,012,408
$
191,989,039
$
27,630,313
$
219,619,352
Note: Reported results and other information herein are preliminary and not final until the filing of the Company’s annual report on Form 20-F with the Securities and Exchange Commission and therefore remain subject to adjustment.
Adjustments for non-operating incomes and expenses
32,050,730
23,086,950
20,936,946
Changes in operating assets and liabilities
(94,957,979
)
(66,008,898
)
(105,435,127
)
$
6,432,107
6,781,792
$
(54,941,677
)
Income taxes paid
(3,303,886
)
(3,783,471
)
(3,701,951
)
Net cash generated from/(used in) operating activities
$
3,128,221
2,998,321
$
(58,643,628
)
(B) CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
$
(2,374,971
)
(3,324,778
)
$
(877,981
)
Purchase of intangible assets
–
(315,649
)
(334,793
)
Advance for property, plant and equipment
(33,408
)
–
–
Proceeds from sale of property, plant and equipment
1,732
4,787
13,569
Net cash outflow on acquisition of subsidiaries
–
(1,954,432
)
—
Net investments in term deposits
(694,519
)
(1,183,286
)
(84,630
)
Purchase of short term investments
(202,980
)
(249,000
)
(110,400
)
Proceeds from the sale of short term investments
180,905
4,248
—
Interest received
2,416,729
2,685,657
802,146
Net cash used in investing activities
$
(706,512
)
(4,332,453
)
$
(592,089
)
(C) CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from issue of shares
$
–
—
$
82,648,766
Repurchase of shares from ex-director
(38,190
)
–
–
Net proceeds from short term debt
34,987,109
37,982,254
27,973,449
Proceeds from long term debt
18,040
128,540
34,220
Repayment of long term debt
(1,205,893
)
(1,764,307
)
(2,241,703
)
Interest paid
(25,090,402
)
(25,870,607
)
(21,751,614
)
Net cash generated from/(used in) financing activities
$
8,670,664
10,475,880
$
86,663,118
(D)Effect of change in exchange rate on cash and cash equivalents
(2,237,549
)
(4,805,988
)
(2,525,319
)
Net increase/(decrease) in cash and cash equivalents
$
8,854,824
4,335,760
$
24,902,082
Cash and cash equivalents at the beginning of the year
37,606,098
33,270,338
8,368,256
Cash and cash equivalents at the end of the year
$
46,460,922
37,606,098
$
33,270,338
Note: Reported results and other information herein are preliminary and not final until the filing of the Company’s annual report on Form 20-F with the Securities and Exchange Commission and therefore remain subject to adjustment.
Non-IFRS Financial Measures
In evaluating our business, we consider and use the non-IFRS measures EBITDA, adjusted EBITDA, adjusted profit after tax, adjusted earnings per share, adjusted net working capital and net debt as supplemental measures to review and assess our operating performance. The presentation of these non-IFRS financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. We define: (1) EBITDA as profit after tax plus finance costs (net of finance income), income tax expense and depreciation and amortization; (2) adjusted EBITDA, as EBITDA plus non-cash expense for share-based compensation for the three and twelve months ended March 31, 2015 and 2014, respectively (3) adjusted profit after tax, as profit after tax plus non-cash expense for share-based compensation for three and twelve months ended March 31, 2015 and 2014, respectively; (4) adjusted earnings per share as the quotient of: (a) adjusted profit after tax and (b) the sum of our weighted average number of shares (including dilutive impact of share options granted) for the applicable period and the ordinary shares subject to the exchange agreement between us and the non-controlling shareholders of Amira India; (5) adjusted net working capital as total current assets minus: (a) total current liabilities (b) cash and cash equivalents and plus current debt; and (6) net debt as total current and non-current debt minus cash and cash equivalents.
We use both EBITDA and adjusted EBITDA as measures of operating performance to assist in comparing performance from period to period on a consistent basis, as a measure for planning and forecasting overall expectations, for evaluating actual results against such expectations and as a performance evaluation metric, including as part of assessing and administering our executive and employee incentive compensation programs. We believe that the use of both EBITDA and adjusted EBITDA as non-IFRS measures facilitates investors’ assessment of our operating performance from period to period and from company to company by backing out potential differences caused by variations in items such as capital structure (affecting relative finance or interest expenses), non-recurring IPO-related expenses, the book amortization of intangibles (affecting relative amortization expenses), the age and book value of property and equipment (affecting relative depreciation expenses) and other non-cash expenses. We also present these non-IFRS measures because we believe they are frequently used by securities analysts, investors and other interested parties as measures of the financial performance of companies in our industry.
These non-IFRS financial measures are not defined under IFRS and are not presented in accordance with IFRS. These non-IFRS financial measures have limitations as analytical tool, and when assessing our operating performance, investors should not consider it in isolation, or as a substitute for profit/ (loss) or other consolidated statements of operations data prepared in accordance with IFRS. Some of these limitations include, but are not limited to:
it does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
it does not reflect changes in, or cash requirements for, our working capital needs;
it does not reflect the finance or interest expenses, or the cash requirements necessary to service interest or principal payments, on our debt;
it does not reflect income taxes or the cash requirements for any tax payments;
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized often will have to be replaced in the future, and adjusted net profit, EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements;
other companies may calculate EBITDA, Adjusted EBITDA and other non-IFRS measures differently than we do, limiting the usefulness of this non-IFRS measure as a comparative measure.
We compensate for these limitations by relying primarily on our IFRS results and using non-IFRS measures only as a supplemental information.
We present adjusted EBITDA, adjusted profit after tax, adjusted earnings per share, adjusted net working capital and net debt because we believe these measures provide additional metrics to evaluate our operations and, when considered with both our IFRS results and the reconciliation to profit after tax, basic and diluted earnings per share, working capital and total current and non-current debt, respectively, provide a more complete understanding of our business than could be obtained absent this disclosure. We also believe that these non-IFRS financial measures are useful to investors in assessing the operating performance of our business after reflecting the adjustments described above.
Reported results and other information herein are preliminary and not final until the filing of the Company’s annual report on Form 20-F with the Securities and Exchange Commission and therefore remain subject to adjustment.
In the following tables we have provided reconciliation of the non-IFRS measures to the most directly comparable IFRS measure:
1. Reconciliation of profit after tax to EBITDA and adjusted EBITDA:
(Amounts in USD)
FY 2015
FY 2014
Three months ended March 31, 2015
Three months ended March 31, 2014
Profit after tax
$
51,369,106
$
38,132,704
$
17,593,804
$
16,777,338
Add: Income tax expense
10,791,342
9,293,071
3,161,550
2,512,762
Add: Finance costs (net of finance income)
32,060,327
23,092,713
10,626,259
6,477,095
Add: Depreciation and amortization
2,352,649
2,064,264
573,735
591,994
EBITDA
$
96,573,424
$
72,582,752
$
31,955,348
$
26,359,189
Add: Non – cash expenses for share based compensation
1,785,704
2,874,010
(138,432
)
–
Add: Onetime expenses related to Bond Issue
1,156,995
–
1,156,995
–
Adjusted EBITDA
$
99,516,124
$
75,456,762
$
32,973,911
$
26,359,189
2. Reconciliation of profit after tax to adjusted profit after tax:
(Amounts in USD)
FY 2015
FY 2014
Three months ended March 31, 2015
Three months ended March 31, 2014
Profit after tax (PAT)
$
51,369,106
$
38,132,704
$
17,593,804
$
16,777,338
Add: Non – cash expenses for share based compensation
1,785,704
2,874,010
(138,432
)
–
Add: Onetime expenses related to Bond Issue
1,156,995
–
1,156,995
–
Adjusted profit after tax
$
54,311,805
$
41,006,714
$
18,612,367
$
16,777,338
3. Reconciliation of earnings per share and adjusted earnings per share:
(Amounts in USD)
FY 2015
FY 2014
Three months ended March 31, 2015
Three months ended March 31, 2014
Profit after tax
$
51,369,106
$
38,132,704
$
17,593,804
$
16,777,338
Profit attributable to Shareholders of the
company (A)
$
40,669,867
$
29,956,327
$
14,125,691
$
13,371,145
Weighted average number of shares (for
Basic earnings per share) (B)
28,723,279
28,672,840
28,780,188
28,674,997
Weighted average number of shares (for
Diluted earnings per share) (C)
28,927,142
28,888,163
28,831,059
29,001,032
Basic Earnings per share as per IFRS (A) ÷ (B)
$
1.42
$
1.04
$
0.49
$
0.47
Diluted Earnings per share as per IFRS (A) ÷ (C)
$
1.41
$
1.04
$
0.49
$
0.46
Profit after tax (PAT)
$
51,369,106
$
38,132,704
$
17,593,804
$
16,777,338
Add: Non – cash expense for share based Compensation
1,785,704
2,874,010
(138,432
)
–
Add: Onetime expenses related to Bond Issue
1,156,995
1,156,995
Adjusted profit after tax,
$
54,311,805
$
41,006,714
$
18,612,367
$
16,777,338
Number of shares outstanding including
shares for non-controlling interest – fully
diluted
35,932,575.51
35,893,597
35,836,493
36,006,466
Adjusted earnings per share
$
1.51
$
1.14
$
0.52
$
0.47
4. Reconciliation of working capital (total current assets minus total current liabilities) and adjusted net working capital:
(Amounts in USD)
FY2015
FY2014
Current assets:
Inventories
$
262,297,532
$
254,952,549
Trade receivables
130,426,136
80,882,986
Derivative financial instruments
260,034
2,352,886
Other financial assets
9,933,742
9,768,514
Prepayments
19,610,778
8,361,244
Other current assets
1,955,834
765,655
Cash and cash equivalents
46,460,922
37,606,098
Total current assets
$
470,944,978
$
394,689,932
Current liabilities:
Trade payables
$
34,007,468
$
41,197,158
Debt
209,174,216
182,103,347
Current tax liabilities (net)
15,018,168
9,644,944
Derivative financial instruments
280,560
–
Other financial liabilities
6,961,163
6,031,593
Other current liabilities
2,850,955
1,980,369
Total current liabilities
$
268,292,530
$
240,957,410
Working Capital as per IFRS (Total current assets minus Total current liabilities)
$
202,652,448
$
153,732,521
Less: Cash and cash equivalents
46,460,922
37,606,098
Add: Current debt
209,174,216
182,103,347
Adjusted net working capital
$
365,365,742
$
298,229,770
5. Reconciliation of total current and non-current debt to net debt:
amiranet 