Interim Results

RNS Number : 0471F

iEnergizer Limited

12 November 2020

 

12 November 2020

iEnergizer Limited

("iEnergizer", the "Company" or the "Group")

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2020

iEnergizer, the technology services and media solutions leader for the digital age, reports another record set of interim results for the six months ended September 30, 2020. Following the increase in both earnings and interim dividend the Board looks forward to the remainder of the year with confidence.

Financial Highlights: Enhanced profitability and margin improvements despite temporary revenue impact of the COVID-19 pandemic.

· EBITDA ^[1]   up by $1.6m to $30.7m (H1 2020: $29.1m)

· Increased EBITDA margin at 34.1% (H1 2020: 30.2%)

· Group Revenue down 6.5% to $90.2m (H1 2020: $96.5m), reflecting reduced business from clients impacted by government lockdown measures

· Operating profit increased to $27.9m (H1 2020: $26.8m)

· Increased operating profit margin at 30.9% (H1 2020: 27.8%)

· Profit before tax increased to $26.9m (H1 2020: $25.0m)

· Higher profit before tax margin at 29.9% (H1 2020: 25.9%)

· Profit after tax increased to $23.5m (H1 2020: $21.6m)

· Net Cash of $5.6m (31 March 2020: $1.6m)

· Proposing interim dividend of 5.72p per ordinary share ($14.36m) (H1 2020: 5.2p)

Operational Highlights : Continued focus on higher margin work and success in business development with existing international customers.

· Business Process Outsource ("BPO"): Service Revenue reduced by 7.6% to $54.9m in H1 2021 (H1 2020: $59.4m), due to reduced business from some clients in India. EBITDA margin grew to 37.3% at $20.8m (H1 2020: 33.5% at $20.3m), as COVID-19 positively impacted iEnergizer's largest and higher margin generating international verticals, offsetting the negative impact on smaller verticals (low-margin India-based travel and e-commerce work). BPO's outsized exposure to fast-growing markets of video gaming, BFSI, telecom and healthcare is expected to result in revenue growth going forward after the temporary decline in the first half of the year.

· Content Division: Service Revenue reduced by 5.6% to $33.7m in H1 2021 (H1 2020: $35.7m), as some key clients postponed high value projects to H2 2021, due to COVID-19. EBITDA margins grew to 28.8% at $9.9m (H1 2020: 24.5% at $8.8m) due to cost-savings and productivity enhancements from 90% of employees transitioning to work from home.

o  Increase in revenue share from higher margin E-Learning contracts helped to reduce the larger negative revenue impact on traditional publishing segments during global lockdowns in H1 2021. 

o  Focussed on increasing its revenue share from the SaaS product line of "Scipris", investing in sales to promote this product line.

o  Continuing to identify further opportunities in Anti Money Laundering /Know Your Customer services.

· New business development: US based sales team is acutely focussed on selling additional services, specifically in the online learning market, which is expected to grow significantly due to new opportunities presented by remote education and operating systems, while working on its strategic priorities: to enhance and grow key accounts; to identify and win new business through new customers; as well as target our existing accounts; and to cross-sell and generate leads for new product launches.

o  Scalability, breadth of services and a highly trained workforce allows iEnergizer to take advantage of industry tailwinds in highly profitable verticals.

o  The Company has continued to acquire new customers, in H1 2021 across iEnergizer's business lines of Business Process Outsource and Content Services Division, with revenue expected to grow from H2 2021 onwards for these new customers. 

· Cost management:

o  Transition to agent work-from-home ("WFH") model has increased efficiency, profitability, client loyalty, productivity, and decreased costs.

o  Increased proportion of division-specific higher margin international work, particularly in non-voice-based processes including: entertainment gaming support; BFSI; Content technology; and E-Learning.

o  Effective use of technology to handle greater volumes from key customers.

· COVID-19

o  The Company has taken important steps to ensure that it is well positioned to fully support the requirements of its customers and staff. Business is operating efficiently in servicing its customers, with most employees successfully transitioned to remote working.

o  As the lockdown measures are being eased, employees catering to Indian customers are now returning to the Company's offices, following government and local authority best-practice guidelines.

o  This provides the Directors with confidence that the Group's operational efficiency will increase to normal levels as the Government of India continue to reduce the lockdown measures.

o  The Company's balance sheet, net cash position and its long-term customer relationships remain strong.

· Interim Dividend:

o  In line with the progressive dividend policy, the Company is pleased to announce an interim dividend of 5.72p with the dividend record date of 27 November, 2020. This interim dividend reflects the Board's confidence in the Group's business plan and growth prospects.

o  The Company's Ordinary Shares are expected to go ex-dividend on 26 November, 2020 and the interim dividend is expected to be paid on 18 December, 2020.

Marc Vassanelli, Chairman of iEnergizer, commented:

"Despite challenges in some business areas due to the impact of COVID-19 on our customers, iEnergizer has demonstrated high resilience during this period. The continued growth in profit margins has been driven by our colleagues' continued efforts in deepening existing customer relationships and via iEnergizer's compelling and evolving proposition, combined with careful and focused cost management. Reflecting the Group's strong balance sheet and the cash generative nature of the business, we are pleased to announce an interim dividend of 5.72p, continuing the trend started in H1 2020.

"During this unprecedented time of COVID-19, we remain in close discussions with our customers to ensure that we meet their needs and requirements, while supporting our staff to work safely and remotely as per government guidelines, to serve customers at maximum capacity and efficiency on all our services.

"With iEnergizer's solid foundation, proven strength in operational execution, new sales initiatives, differentiated offerings, healthy balance sheet, and with substantial opportunities for further growth identified, w e expect sustained business performance and the Board looks forward to the remainder of the year with confidence."

-Ends-

EBITDA has been calculated under the IFRS 16 accounting standards, under which a company's operating lease liabilities are shown as liabilities on the balance sheet, together with the related assets that correspond to the right to use such assets over the remaining life of the related lease contracts. If these impacts had not been taken into consideration, the EBITDA would have been $29.8m.

iEnergizer Ltd.	[phone]
Chris de Putron
Mark De La Rue
FTI Consulting - Communications Adviser	[phone]
Jonathon Brill / Eleanor Purdon
Arden Partners - Nominated adviser and Broker Ciaran Walsh / Benjamin Cryer/ Steve Douglas / Dan Gee-Summons (Corporate Finance) James Reed-Daunter (Equity Sales)	[phone]

iEnergizer Limited and its subsidiaries

Unaudited Condensed Consolidated Interim Financial Statements

Prepared in accordance with International Financial Reporting Standards (IFRS)

Six months ended 30 September 2020 and 2019

Unaudited Condensed Consolidated Statements of Financial Position

(All amounts in United States Dollars, unless otherwise stated)

		Notes	As  at		As  at
			30 September 2020		31 March 2020
			Unaudited		Audited
ASSETS
Non-current
Goodwill		5	102,249,839		102,248,030
Other intangible assets		6	12,745,302		12,557,319
Right to use		10	4,912,802		5,303,271
Property, plant and equipment		7	6,189,439		7,142,700
Long- term financial asset			2,511,424		3,351,981
Non-current tax assets			248,946		1,238,883
Deferred tax asset			3,866,593		3,623,361
Other non current assets			2,915		21,047
Non-current assets			132,727,260		135,486,592
Current
Trade and other receivables			30,608,165		32,044,127
Cash and cash equivalents			44,208,431		45,147,783
Short- term financial assets		8	14,594,266		7,642,641
Current tax assets			-		211,055
Other current assets			4,042,739		2,589,023
Current assets			93,453,601		87,634,629
Total assets			226,180,861		223,121,221
EQUITY AND LIABILITIES
Equity
Share capital			3,776,175	3,776,175
Share compensation reserve			63,986	63,986
Additional paid in capital			15,451,809	15,451,809
Merger reserve			(1,049,386)	(1,049,386)
Retained earnings			142,839,866	139,677,678
Other components of equity			(16,591,327)	(17,320,281)
Total equity attributable to equity holders of the parent			144,491,123	140,599,981

	Notes	As  at	As  at
		30 September 2020	31 March 2020
		Unaudited	Audited

Liabilities
Non-current
Long term borrowings		28,561,619	32,992,983
Employee benefit obligations		4,667,389	4,667,061
Deferred tax liability		10,664,867	9,717,709
Non-current liabilities		43,893,875	47,377,753
Current
Trade and other payables		14,616,199	11,481,885
Employee benefit obligations		828,923	810,614
Current tax liabilities		300,107	-
Current portion of long term borrowings		10,049,427	10,527,775
Other current liabilities		12,001,207	12,323,213
Current liabilities		37,795,863	35,143,487
Total equity and liabilities		226,180,861	223,121,221

 (The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

Unaudited Condensed Consolidated Income Statements

 (All amounts in United States Dollars, unless otherwise stated)

 (The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

	Notes	For the six months ended	For the six months ended
		30 September 2020	30 September 2019
		Unaudited	Unaudited
Income from operations
Revenue from services		88,675,643	95,180,896
Other operating income		1,070,303	1,046,950
		89,745,946	96,227,846
Cost and expenses
Outsourced service cost		17,960,207	21,219,347
Employee benefits expense		34,138,255	39,580,811
Depreciation and amortisation		2,343,227	2,063,317
Other expenses		7,391,648	6,566,098
		61,833,337	69,429,573
Operating profit		27,912,609	26,798,273
Finance income		590,691	360,107
Finance cost		(1,603,155)	(2,199,643)
Profit before tax		26,900,145	24,958,737
Income tax expense		3,363,846	3,387,120
Profit for the year attributable to equity holders of the parent		23,536,299	21,571,617
Earnings per share	9
Basic		0.12	0.11
Diluted		0.12	0.11
Par value of each share in GBP		0.01	0.01

Unaudited Condensed Consolidated Statements of Other Comprehensive Income

(All amounts in United States Dollars, unless otherwise stated)

		For the six months ended	For the six months ended
		30 September 2020	30 September 2019
		Unaudited	Unaudited
Profit after tax for the year		23,536,299	21,571,617
Other comprehensive income
Items that will be reclassified subsequently to the consolidated income statement
Exchange differences on translating foreign operations		728,954	(808,836)
Net other comprehensive (loss) that will be reclassified subsequently to consolidated income statement		728,954	(808,836)
Items that will not be reclassified subsequently to income statement
Remeasurement of the net defined benefit liability		-	257,399
Income tax relating to items that will not be reclassified		-	(74,954)
Net other comprehensive income that will be not be reclassified subsequently to consolidated income statement		-	182,445
Other comprehensive income/(loss) for the year		728,954	(626,391)
Total comprehensive income attributable to equity holders		24,265,253	20,945,226

 (The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

Unaudited Condensed Consolidated Statements of Changes in Equity

(All amounts in United States Dollars, unless otherwise stated)

	Share capital	Additional paid-in-capital	Share compensation reserve	Merger reserve	Other components of equity		Retained earnings	Total equity
					Foreign currency translation reserve	Net defined  benefit  liability
Balance as at 1 April 2019	3,776,175	15,451,809	63,986	(1,049,386)	(12,448,144)	778,332	131,950,337	138,523,109
Dividends	-	-	-	-	-	-	(37,294,827)	(37,294,827)
Transaction with owners	-	-	-	-	-	-	(37,294,827)	(37,294,827)
Profit for the year	-	-	-	-	-	-	45,022,168	45,022,168
Other comprehensive loss	-	-	-	-	(5,559,767)	(90,702)	-	(5,650,469)
Total comprehensive income for the period	-	-	-	-	(5,559,767)	(90,702)	45,022,168	39,371,699
Balance as at 31 March 2020	3,776,175	15,451,809	63,986	(1,049,386)	(18,007,911)	687,630	139,677,678	140,599,981

 (The accompanying notes are an integral part of the Consolidated Financial Statements)

	Share capital	Additional Paid in Capital	Share compensation reserve	Merger reserve	Other components of equity		Retained earnings	Total equity
					Foreign currency translation reserve	Net defined benefit liability
Balance as at 01 April 2020	3,776,175	15,451,809	63,986	(1,049,386)	(18,007,911)	687,630	139,677,678	140,599,981
Dividends	-	-	-	-	-	-	(20,374,113)	(20,374,113)
Transaction with owners	-	-	-	-	-	-	(20,374,113)	(20,374,113)
Profit for the year	-	-	-	-	-	-	23,536,300	23,536,300
Other comprehensive gain	-	-	-	-	728,954	-	-	728,954
Total comprehensive income for the period	-	-	-	-	728,954	-	23,536,300	24,265,254
Balance as at 30 September 2020	3,776,175	15,451,809	63,986	(1,049,386)	(17,278,957)	687,630	142,839,866	144,491,123

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

 

Unaudited Condensed Consolidated Statements of Cash Flows

(All amounts in United States Dollars, unless otherwise stated)

		For the six months ended	For the six months ended
		30 September 2020	30 September 2019
(A) Cash flow from operating activities
Profit before tax		26,900,145	24,958,737
Adjustments
Depreciation and amortisation		2,343,227	2,063,317
Loss/(Profit) on disposal of property, plant and equipment		(2,064)	(6,024)
Trade receivables written-off/provision for doubtful debts		1,089,700	(65,262)
Sundry balances written back		(2,750)	-
Unrealised foreign exchange gain		(651,277)	(174,089)
Finance income		(590,691)	(360,107)
Finance cost		1,603,155	2,199,643
		30,689,445	28,616,215
Changes in operating assets and liabilities
(Increase)/ Decrease in trade and other receivables		(484,556)	2,015,601
(Increase)/ Decrease in other assets (current and non-current)		2,081,433	941,298
Increase / (Decrease) Non-current liabilities, trade payables & other current liabilities		(1,304,119)	2,670,121
(Decrease)/ Increase in employee benefit obligations		(9,053)	307,761
Cash generated from operations		30,973,150	34,550,996
Income taxes paid		(1,158,820)	(2,383,750)
Net cash generated from operating activities		29,814,330	32,167,246
(B) Cash flow for investing activities
Payments for purchase of property plant and equipment		(256,175)	(1,521,588)
Investment in fixed deposit (Net)		(3,256,262)	(883,210)
Proceeds from disposal of property, plant & equipment		2,258	6,581
Payments for purchase of other intangible assets		(505,703)	(220,909)
Interest received		585,282	400,808
Net cash used in investing activities		(3,430,600)	(2,218,318)

		For the six months ended	For the six months ended
		30 September 2020	30 September 2019

(C ) Cash flow from financing activities
Interest paid		(1,603,155)	(2,145,802)
Repayment of borowings and lease liability		(5,179,793)	(4,150,357)
Net cash used in financing activities		(6,782,948)	(6,296,159)
Net increase/(decrease) in cash and cash equivalents		19,600,782	23,652,769
Dividends paid to equity holders of the parent		(20,374,113)	(24,068,320)
Cash and cash equivalents at the beginning of the year		45,147,783	42,404,281
Effect of exchange rate changes on cash		(166,022)	83,553
Cash and cash equivalents at the end of the year		44,208,431	42,072,283
Cash and cash equivalents comprise
Cash in hand		13,801	8,337
Balances with banks in current account		44,194,630	42,063,946
		44,208,431	42,072,283

  (The accompanying notes are an integral part of these Consolidated Financial Statements)

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(All amounts in United States Dollars, unless otherwise stated)

1.  INTRODUCTION

iEnergizer Limited (the 'Company' or 'iEnergizer ') was incorporated in Guernsey on 12 May 2010.

iEnergizer Limited is a 'Company limited by shares' and is domiciled in Guernsey. The registered office of the Company is located at Mont Crevelt House, Bulwer Avenue, St. Sampson, Guernsey, GY2 4 LH. iEnergizer was listed on the Alternative Investment Market ('AIM') of London Stock Exchange on 14 September 2010.

iEnergizer through its subsidiaries iEnergizer Holdings Limited, iEnergizer IT Services Private Limited, iEnergizer Management Services Limited, iEnergizer BPO Limited, iEnergizer BPO Inc, iEnergizer Aptara Limited and Aptara Inc and subsidiaries. (together the 'Group') is engaged in the business of call centre operations, providing business process outsource (BPO) and content delivery services, and back office services to their customers, who are primarily based in the United States of America and India, from its operating offices in Mauritius and India.

2.  GENERAL INFORMATION AND STATEMENT OF COMPLIANCE WITH IFRS

These Unaudited Condensed Consolidated Interim Financial Statements are for the six months ended 30 September 2020 and 2019. They have been prepared in accordance with IAS 34 Interim Financial Reporting as developed and published by the International Accounting Standards Board ('IASB'), on a going concern basis. They do not include all of the information required in annual financial statements in accordance with IFRS, and should be read in conjunction with the annual financial statements for the years ended 31 March 2020 and 2019.

The Unaudited Condensed Consolidated Interim Financial Statements have been prepared and presented in United States Dollar (US$) which is the Company's functional currency.

These Unaudited Condensed Consolidated Interim Financial Statements were approved by the Board on 11 November 2020.

The Group has applied the same accounting policies in preparing these unaudited management financial information as adopted in the most recent annual audited financial information of the Group.

3.  SIGNIFICANT ACCOUNTING POLICIES

The interim financial statements have been prepared in accordance with the accounting policies adopted in the Group's most recent annual financial statements for the years ended 31 March 2020 and 2019.

4.  SIGNIFICANT MANAGEMENT JUDGEMENT IN APPLYING ACCOUNTING POLICIES AND ESTIMATION UNCERTAINTY

When preparing the Unaudited Condensed Consolidated Interim Financial Statements, management undertakes a number of judgements, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judgements, estimates and assumptions made by management, and will seldom equal the estimated results.

The judgements, estimates and assumptions applied in the Unaudited Condensed Consolidated Interim Financial Statements, including the key sources of estimation uncertainty were the same as those applied in the Group's last audited financial statements for the year ended 31 March 2020.

5.  GOODWILL

The net carrying amount of goodwill can be analysed as follows:

Particulars	Amount
Balance as at 1 April 2019	102,256,665
Impairment loss recognized	-
Translation adjustment	(8,635)
Balance as at 31 March 2020	102,248,030

Particulars	Amount
Balance as at 01 April 2020	102,248,030
Translation adjustment	1,809
Balance as at 30 September 2020	102,249,839

6.  OTHER INTANGIBLE ASSETS

The Intangible assets comprise of computer software, customer contracts.

Particulars	Customer contracts	Computer software	Patent	Trademark	Intangibles under development	Total
Cost
Balance as at 1 April 2019	24,112,814	3,944,019	100,000	12,000,000	132,490	40,289,323
Additions	-	511,654	-	-	-	511,654
Disposals	-	-	-	-	-	-
Translation and other adjustments	(9,657)	(276,192)	-	-	-	(285,849)
Balance as at 31 March 2020	24,103,157	4,179,481	100,000	12,000,000	132,490	40,515,128
Accumulated amortisation
Balance as at 1 April 2019	24,112,814	3,559,966	-	-	132,490	27,805,270
Amortisation/impairment for the period	-	423,580	-	-	-	423,580
Disposals	-	-	-	-	-	-
Translation and other adjustments	(9,657)	(261,384)	-	-	-	(271,041)
Balance as at 31 March 2020	24,103,157	3,722,162	-	-	132,490	27,957,809
Carrying values as at 31 March 2020	-	457,319	100,000	12,000,000	-	12,557,319

Particulars	Customer contracts*	Computer softwares	Patent	Trade mark	Intangibles under development	Total
Cost
Balance as at 01 April 2020	24,103,157	4,179,481	100,000	12,000,000	132,490	40,515,128
Additions	-	505,703	-	-	-	505,703
Disposals	-	-	-	-	-	-
Translation and other adjustments	2,024	64,686	-	-	-	66,710
Balance as at 30 September 2020	24,105,181	4,749,870	100,000	12,000,000	132,490	41,087,541
Accumulated amortisation
Balance as at 01 April 2020	24,103,157	3,722,162	-	-	132,490	27,957,809
Amortisation/impairment for the period	-	319,700	-	-	-	319,700
Disposals	-	-	-	-	-	-
Translation and other adjustments	2,024	62,706	-	-	-	64,730
Balance as at 30 September 2020	24,105,181	4,104,568	-	-	132,490	28,342,239
Carrying values as at 30 September 2020	-	645,302	100,000	12,000,000	-	12,745,302

7.  PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment comprise of the following:

Particulars	Computer and data equipment	Office equipment	Furniture and fixtures	Air conditioner and generator	Vehicle	Leasehold improve-ments	Plant and machinery	Capital work in progress	Total
Cost
Balance as at 1 April 2019	8,406,553	854,772	1,438,730	916,719	20,747	4,717,127	2,316,570	224,308	18,895,526
Additions	2,467,719	274,357	39,541	34,233	398,792	152,713	120,773	114,088	3,602,216
Disposals	(85,706)	-	(16,167)	-	-	-	(15,686)	-	(117,559)
Translation and other adjustments	(684,194)	(66,510)	(95,586)	(67,004)	(23,407)	(334,231)	(147,647)	(7,175)	(1,425,754)
Balance as at 31 March 2020	10,104,372	1,062,619	1,366,518	883,948	396,132	4,535,609	2,274,010	331,221	20,954,429
Balance as at 1 April 2019	5,522,457	778,064	996,024	262,105	16,561	2,846,284	1,866,959	-	12,288,454
Depreciation for the period	1,628,060	62,006	117,881	114,565	29,858	461,149	187,790	-	2,601,309
Disposals	(85,037)	-	(16,083)	-	-	-	(15,261)	-	(116,381)
Translation and other adjustments	(466,409)	(52,044)	(69,242)	(24,599)	(2,745)	(220,207)	(126,407)	-	(961,653)
Balance as at 31 March 2020	6,599,071	788,026	1,028,580	352,071	43,674	3,087,226	1,913,081	-	13,811,729
Carrying values as at 31 March 2020	3,505,301	274,593	337,938	531,877	352,458	1,448,383	360,929	331,221	7,142,700

Particulars	Computer and data equipment	Office Equipment	Furniture and fixtures	Air conditioner and generator	Vehicle	Leasehold improvements	Plant and machinery	Capital work in progress	Total
Cost
Balance as at 01 April 2020	10,104,372	1,062,619	1,366,518	883,948	396,132	4,535,609	2,274,011	331,221	20,954,430
Additions	355,308	27,857	15,019	45,619	-	21,528	43,940	(253,097)	256,174
Disposals (Net)	(58,497)	-	-	-	-	-	-	-	(58,497)
Translation and other adjustments	158,534	15,872	20,117	13,761	6,333	71,299	32,611	5,478	324,005
Balance as at 30 September 2020	10,559,717	1,106,348	1,401,654	943,328	402,465	4,628,436	2,350,562	83,602	21,476,112
Accumulated depreciation
Balance as at 01 April 2020	6,599,071	788,028	1,028,580	352,070	43,674	3,087,225	1,913,082	-	13,811,730
Depreciation for the period	859,562	33,731	53,728	53,916	1,596	232,032	65,810	-	1,300,375
Disposals (Net)	(58,303)	-	-	-	-	-	-	-	(58,303)
Translation and other adjustments	117,019	11,715	15,593	6,534	730	52,860	28,421	-	232,872
Balance as at 30 September 2020	7,517,349	833,474	1,097,901	412,520	46,000	3,372,117	2,007,313	-	15,286,674
Carrying values as at 30 September 2020	3,042,368	272,874	303,753	530,808	356,465	1,256,319	343,249	83,602	6,189,438

8.  SHORT TERM FINANCIAL ASSETS

Particulars	30 September 2020		31 March 2020
Security deposits	61,483		60,516
Restricted cash	5,815,886		4,293,982
Short term investments (fixed deposits with maturity less than 12 months)	8,648,935		3,244,643
Derivative financial instruments	23,942		-
Due from officers and employees	22,354		27,244
Others	21,666		16,256
	14,594,266		7,642,641

Short term investments comprise of investment through banks in deposits denominated in various currency units bearing fixed rate of interest.

9.  EARNINGS PER SHARE

The calculation of the basic earnings per share is based on the profits attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.

Calculation of basic and diluted profit per share for the period ended 30 September 2020 is as follows:

Basic earnings per share

Particulars		30 September 2020	30 September 2019
Profit attributable to shareholders		23,536,299	21,571,617
Weighted average numbers shares outstanding		190,130,008	190,130,008
Basic earnings per share (US$)		0.12	0.11

Diluted earnings per share

Particulars			30 September 2020	30 September 2019
Profit attributable to shareholders		23,536,299		21,571,617
Weighted average numbers shares outstanding		190,130,008		190,130,008
Diluted earnings per share (US$)		0.12		0.09

10.  LEASES

(a) Lease liabilities are presented in the statement of financial position as follows:

Particulars	30 September 2020	31 March 2020
Current	1,108,453	1,216,547
Non-current	4,293,899	4,467,004
	5,402,352	5,683,551

(b) The following are amounts recognised in consolidated income statement:

Particulars	30 September 2020	31 March 2020
Depre ciation expenses of right-of-use Interest Expense on the Lease Liability	723,152	1,451,931
Interest expense on lease liability	266,387	587,564
Rent expenses*	29,448	9,323
Common area maintenance expenses	60,887	175,566
Total	1,079,874	2,224,384

*Rent expense in respect of Short Term Lease

(c) Right to use of assets as at 31 March 2020:

Particulars	Leased premises
Gross block
Balance as at 31 March 2019	-
IFRS-16 transition	6,311,071
Gross block as at 1 April 2019	6,311,071
Additions during the year	580,409
Translation adjustment	(194,989)
Gross block as at 31 March 2020	6,696,491
Accumulated depreciation
Balance as at 1 April 2019	-
Depreciation for the period	1,451,931
Translation adjustment	(58,711)
Accumulated depreciation as at 31 March 2020	1,393,220
Net block as at 31 March 2020	5,303,271

Particulars	Leased premises
Gross block as at 1 April 2020	6,696,491
Additions during the year	270,081
Translation adjustment	90,297
Gross block as at 30 September 2020	7,056,869
Accumulated depreciation
Balance as at 1 April 2020	1,393,220
Depreciation for the period	723,152
Translation adjustment	27,695
Accumulated depreciation as at 30 September 2020	2,144,067
Net block as at 30 September 2020	4,912,802

The lease liabilities were USD 5,402,352 as of 30 September 2020 (USD 5,683,551 as of 31 March 2020). The corresponding interest expense for the six month ended 30 September 2020 amounted to USD 266,387 (interest expense for the year ended 31 March 2020 amounted to USD 587,564).

(e)   The maturity analysis of the lease liabilities as of 31 March 2020, is as follows:

Payments falling due	Gross future minimum lease payments
	30 September 2020	31 March 2020
Within 1 year	1,699,280	1,616,248
Later than 1 year but less than 5 years	3,929,693	3,341,682
More than 5 years	1,744,994	2,436,638
	7,373,967	7,394,568

11.  RELATED PARTY TRANSACTIONS 

The related parties for each of the entities in the Group have been summarised in the table below:

Nature of the relationship	Related Party's Name
I.  Ultimate controlling party	Mr. Anil Aggarwal
II. Entities directly or indirectly through one or more intermediaries, control, are controlled by, or are under common control with, the reported enterprises	EICR (Cyprus) Limited (Parent of iEnergizer Limited)
III. Key management personnel ("KMP") and significant shareholders	Mr. Anil Aggarwal (Ultimate Shareholder, EICR Limited)
	Mr. Chris de Putron (Director, iEnergizer Limited) Mr. Mark De La Rue (Director, iEnergizer Limited) Mr. Marc Vassanelli (Director, iEnergizer Limited) Mr. Ashish Madan (Director, iEnergizer Limited)

Disclosure of transactions between the Group and related parties and the outstanding balances is as under:

Transactions with KMP and relative of KMP

Particulars	30 September 2020	30 September 2019
Transactions during the period ended
Short term employee benefits
Remuneration paid to directors
Chris de Putron	6,300	6,249
Mark De La Rue	6,300	6,249
Marc Vassanelli	18,899	18,747
Balances at the end of
Total remuneration payable	147,741	109,385

12.  SEGMENT REPORTING

Management currently identifies the Group's two service lines business process outsource and content delivery as operating segments on the basis of operations. These operating segments are monitored and operating and strategic decisions are made on the basis of operating segment results.  

The Chief Operating Decision Maker ("CODM") evaluates the Group's performance and allocates resources based on an analysis of various performance indicators by reportable segments. The Group's reportable segments are as follows:

1.  Business Process Outsource

2.  Content delivery

The measurement of each segment's revenues, expenses and assets is consistent with the accounting policies that are used in preparation of the Unaudited Condensed Consolidated Interim Financial Statements . Segment information can be analysed as follows for the reporting periods under review:

				30 September 2020
		Business Process Outsource		Content delivery		Total
Revenue from external customers		54,935,441		33,740,202		88,675,643
Other income (including realised foreign exchange gain)		934,741		135,563		1,070,304
Realized Foreign Exchange gain/(loss)		(23,942)		497,113		473,171
Segment revenue		55,846,240		34,372,878		90,219,118
Cost of outsourced Services		13,537,655		4,422,552		17,960,207
Employee benefit expense		15,971,568		18,166,687		34,138,255
Other expenses		5,513,055		1,878,593		7,391,648
Earning before interest, tax, depreciation and amortization		20,823,961		9,905,046		30,729,007
Rent adjustment as per IFRS 16		321,533		568,176		889,709
Earning before interest, tax, depreciation and amortisation (before rent adjustment)		20,502,428		9,336,870		29,839,298
Unrealized Foreign Exchange gain/(loss)		23,942		(497,113)		(473,171)
Depreciation and amortisation		(1,186,847)		(1,156,380)		(2,343,227)
Rent adjustment as per IFRS 16		321,533		568,176		889,709
Segment operating profit		19,661,056		8,251,553		27,912,609
Other Income/expense :
Finance income		433,615		157,076		590,691
Finance costs		(258,483)		(1,344,672)		(1,603,155)
Profit before tax		19,836,189		7,063,957		26,900,146
Income tax expense		(2,145,367)		(1,218,479)		(3,363,846)
Profit after tax		17,690,822		5,845,478		23,536,300
Segment assets		72,950,460		153,230,400		226,180,860
Segment liabilities		22,136,831		59,441,566		81,578,397
Capital expenditure		692,921		339,037		1,031,958
			30 September 2019
	Business Process Outsource		Content delivery		Total
Revenue from external customers	59,433,379		35,747,517		95,180,896
Other income (including realised foreign exchange gain)	1,028,226		280,168		1,308,394
Realized Foreign Exchange gain/(loss)	-		-		-
Segment revenue	60,461,605		36,027,685		96,489,290
Cost of outsourced Services	16,144,667		5,074,680		21,219,347
Employee benefit expense	20,188,248		19,392,563		39,580,811
Other expenses	3,839,943		2,726,155		6,566,098
Earning before interest, tax, depreciation and amortisation	20,288,747		8,834,287		29,123,034
Rent adjustment as per IFRS 16	(281,860)		(602,398)		(884,258)
Earning before interest, tax, depreciation and amortisation (before rent adjustment)	20,006,887		8,231,889		28,238,776
Unrealized Foreign Exchange gain/(loss)	-		(261,444)		(261,444)
Depreciation and amortisation	(959,531)		(1,103,786)		(2,063,317)
Rent adjustment as per IFRS 16	281,860		602,398		884,258
Segment operating profit	19,329,216		7,469,057		26,798,273
Other Income/expense :
Finance income	246,139		113,968		360,107
Finance costs	(256,274)		(1,943,369)		(2,199,643)
Profit before tax	19,319,081		5,639,656		24,958,737
Income tax expense	(1,954,446)		(1,432,675)		(3,387,121)
Profit after tax	17,364,635		4,206,981		21,571,616
Segment assets	65,500,283		156,564,586		222,064,869
Segment liabilities	38,248,855		48,416,000		86,664,855
Capital expenditure	4,682,531		3,625,169		8,307,700

Revenue from the following customer's amounts to more than 10% of consolidated revenue during the period presented.

30 September 2020

Revenue from	Segment	Amount
Customer 1	Business Process Outsource	12,959,751

30 September 2019

Revenue from	Segment	Amount
Customer 1	Business Process Outsource	9,928,185

13.  FINANCIAL ASSETS AND LIABILITIES

Fair value of carrying amounts of assets and liabilities presented in the statement of financial position relates to the following categories of assets and liabilities:

Financial assets	30 September 2020	31 March 2020
Non-current assets
Loans and receivables
Security deposits	408,735	382,614
Restricted cash	1,424,263	1,881,726
Fixed deposit	678,426	1,087,641
Current assets
Loans and receivables
Trade receivables	30,608,165	32,044,127
Cash and cash equivalents	44,198,534	45,147,783
Restricted cash	5,815,886	4,293,982
Security deposits	61,483	60,516
Fixed deposits with banks	8,648,934	3,244,643
Due from officers and employees	22,354	27,244
Interest accrued on fixed deposit	21,666	16,256
Fair value through profit and loss:
Derivative financial instruments	-	-
	91,888,446	88,186,532
Financial liabilities	30 September 2020	31 March 2020
Non-current liabilities
Financial liabilities measured at amortized cost:
Long term borrowings	28,561,619	32,992,983
Current liabilities
Financial liabilities measured at amortized cost:
Short term borrowings
Trade payables	14,616,172	11,481,885
Current portion of long term borrowings	10,049,427	10,527,775
Other current liabilities	12,001,206	12,323,213
Fair value through profit and loss:
Derivative financial instruments	-	-
	65,228,424	67,325,856

These non-current financial assets and liabilities, current financial assets and liabilities have been recorded at their respective carrying amounts as the management considers the fair values to be not materially different from their carrying amounts recognised in the statement of financial positions as these are expected to realise within one year from the reporting dates. Derivative financial instruments, recorded at fair value through profit and loss, are recorded at their respective fair values on the reporting dates.

14.  FAIR VALUE HIERARCHY

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

No financial assets/liabilities have been valued using level 1 and 3 fair value measurements.

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:

30 September 2020	Total	Fair value measurements at reporting date using
			Level 2
Liabilities	(Notional amount)
Derivative instruments
Forward contracts (currency - US$/INR)	19, 100 ,000		(89,733)

31 March 2020	Total	Fair value measurements at reporting date using
			Level 2
Assets	(Notional amount)
Derivative instruments
Forward contracts (currency - US$/INR)	35,850,000		(1,891,422)

15.  COMMITMENT AND CONTINGENCIES

As at 30 September 2020 and 31 March 2020, the Group had a capital commitment of US$ 318,845 and US$141,848 respectively for acquisition of property, plant and equipment.

The contingent liability in respect of claims filed by erstwhile employees against the group companies amounts to US$62,876 and US$55,427 as on 30 September 2020 and 31 March 2020 respectively and in respect of interest on VAT amounts to US$9,496 as on 30 September 2020 (US$9,347 as on 31 March 2020).

Guarantees: As at 30 September 2020 and 31 March 2020, guarantees provided by banks on behalf of the group companies to the revenue authorities and certain other agencies, amount to approximately US$37,320 and US$36,732 respectively.

16.  ESTIMATES

The preparation of interim financial statements require management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these Unaudited Condensed Consolidated Interim Financial Statements, the significant judgments made by the management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the years ended 31 March 2020 and 2019.

17.  FINANCIAL RISK MANAGEMENT

The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the years ended 31 March 2020 and 2019.

 

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