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India Globalization (IGC) Reports 100% Increase in FY2008 Revenues

India Globalization Capital, Inc. (IGC:AMEX) is a US-based company developing infrastructure in India through its majority-owned subsidiaries, Sricon Infrastructure Private Ltd. and Techni Bharathi Ltd. On March 7, 2008 the company acquired 63% of Sricon Infrastructure and 77% of Techni Bharathi. The company, through its subsidiaries, has three core businesses: 1) highway and other heavy construction, 2) mining and quarrying, and 3) civil construction and engineering of high-temperature plants.

Recently, India Globalization announced a good set of results for the fiscal year ending March 31, 2008. The two subsidiaries combined reported revenues of $32.9 million and earnings of $4.4 million. The company’s CEO Ram Makunda said, “On a pro forma basis, our combined subsidiaries increased revenue by over 100% year-over-year with expanding margins.”

India, of course, is one of the BRIC countries with a booming economy and a huge population. It is well known that India is lagging behind China in building their infrastructure, and that India is sorely in need of infrastructure throughout the country. Since India Globalization is an infrastructure company in a country with tremendous demand for infrastructure, the demand for the company’s services is expected to grow nicely.

India Globalization’s order book does seem to be filling up. CEO Ram Makunda stated, “Based on our current order book, we expect record revenues and earnings and reaffirm our guidance for the fiscal year ending March 31, 2009 of revenue between $110 million to $125 million and earnings between $7 million to $9 million, before any one-time or non-cash charges.”

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