EPS of $-0.04 increased by 42.5% from previous year
Gross margin of 58.0%
Net income of -2.89M
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India Globalization Capital Inc (IGC) QQ4 2024 Results - Revenue Growth in a Narrow Revenue Base Amid Persistent Losses and Modest Cash Position
Executive Summary
IGC posted a revenue increase in QQ4 2024, with revenue of 0.295 million, up 77.7% year over year and 44.6% quarter over quarter. Despite the top-line improvement, the company continued to generate meaningful losses, recording an EBITDA of -2.006 million and a net income of -2.885 million (EPS -0.0436). The gross margin was a solid 57.97%, driven by a lean cost of revenue base (124k) relative to revenue, but operating expenses remained outsized due to R&D and SG&A investments (855k and 1.486 million respectively), resulting in an operating loss of -2.17 million and a negative net margin of -9.78%. Free cash flow was negative at -0.851 million, and operating cash flow was -0.526 million, pointing to ongoing cash burn despite a limited capex outlay of -0.325 million.
From a balance sheet perspective, IGC carried cash of 1.198 million against total debt of about 0.345 million and net debt of -0.853 million, with total assets of 9.902 million and total stockholders’ equity of 7.321 million. Liquidity metrics show a current ratio of 1.58, a quick ratio of 0.93, and a cash ratio of 0.51, indicating modest near-term liquidity but a fragile earnings trajectory. The company’s valuation signals remain elevated relative to its revenue base (price-to-sales ~106.8x) and book value (~4.3x), underscoring the high-risk, high-variance profile of a microcap with limited scale.
Management commentary for QQ4 2024 is not reflected in the available transcript data; no earnings-call quotes were provided in the supplied materials. Given the current dataset, the near-term path hinges on continued monetization of R&D investments, potential product-line commercialization in life sciences and CBD-based offerings, and any future contract wins in infrastructure-related activities. Investors should monitor cash burn dynamics, any new revenue catalysts, and potential dilution risks if further financing is pursued.
EBITDA: -2.006 million; EBITDA margin -6.80%; YoY change not directly comparable due to base differences; QoQ change aligns with operating trajectory.
Net Income: -2.885 million; Net margin -9.78%; YoY change +28.41% (loss still expanding on an absolute basis); QoQ change +48.38% (larger loss in the prior quarter).
Financial Highlights
Key QQ4 2024 metrics (USD, unless noted):
- Revenue: 0.295 million; YoY growth +77.71%; QoQ growth +44.61%.
- Gross Profit: 0.171 million; Gross margin 57.97%; YoY gross profit growth +171.43%; QoQ +28.57%.
- Operating Income: -2.17 million; Operating margin -7.36%; YoY change +46.27%; QoQ +27.62%.
- EBITDA: -2.006 million; EBITDA margin -6.80%; YoY change not directly comparable due to base differences; QoQ change aligns with operating trajectory.
- Net Income: -2.885 million; Net margin -9.78%; YoY change +28.41% (loss still expanding on an absolute basis); QoQ change +48.38% (larger loss in the prior quarter).
- EPS (Diluted): -0.0436; YoY +42.48%; QoQ +50.29%.
- Gross Margin: 57.97%; Operating Margin: -7.36%; Net Margin: -9.78%.
- Cash Flow: Net cash from operating activities -0.526 million; Capex -0.325 million; Free cash flow -0.851 million; Operating cash flow margin below zero due to working capital and operating expenses.
- Balance Sheet (selected): Cash and cash equivalents 1.198 million; Total assets 9.902 million; Total liabilities 2.581 million; Total stockholders’ equity 7.321 million; Net debt position -0.853 million (net cash).
- Liquidity metrics: Current ratio 1.583; Quick ratio 0.925; Cash ratio 0.512.
- Leverage and valuation: Total debt 0.345 million; Debt/Equity ~0.047x; P/S ~106.8x; P/B 4.30x; Enterprise Value multiple negative (-15.27x) due to negative EBITDA and small scale.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
295.00K
77.71%
44.61%
Gross Profit
171.00K
171.43%
28.57%
Operating Income
-2.17M
46.27%
27.62%
Net Income
-2.89M
28.41%
48.38%
EPS
-0.04
42.48%
50.29%
Key Financial Ratios
currentRatio
1.58
grossProfitMargin
58%
operatingProfitMargin
-736%
netProfitMargin
-978%
returnOnAssets
-29.1%
returnOnEquity
-39.4%
debtEquityRatio
0.05
operatingCashFlowPerShare
$-0.01
freeCashFlowPerShare
$-0.01
priceToBookRatio
4.3
priceEarningsRatio
-2.73
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Earnings call transcript for QQ4 2024 is not provided in the supplied data. As a result, there are no management quotes or thematic highlights available to quote or summarize. If a transcript becomes available, key themes to capture would include: strategy priorities (growth in Life Sciences and Infrastructure), cost-management actions, progress on CBD/hemp product commercialization, and any guidance on revenue trajectory or funding needs.
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Forward Guidance
No formal forward guidance was included in the QQ4 2024 data. Given the current financial profile, near-term guidance would likely hinge on: (1) ramp or validation of revenue from any CBD/life sciences products and related partnerships, (2) visibility into highway/infrastructure contracting or equipment rental opportunities that could provide higher utilization and scale, and (3) capital-raising plans if required to bridge liquidity during continued R&D investment. Investors should monitor: updates to product commercialization milestones, contract wins or partnerships, working capital dynamics, and any changes to debt or equity financing strategy.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
IGC Focus
57.97%
-7.36%
-39.40%
-2.73%
OGEN
294.26%
67.00%
-4.02%
-34.00%
VTVT
3.56%
523.00%
14.10%
-1.72%
INPX
1.65%
-20.02%
4.68%
28.50%
XXII
-1.08%
-4.37%
3.49%
-5.31%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
IGC is a microcap with a clear revenue growth trajectory on a very small base, paired with substantial R&D and SG&A investments that produce meaningful near-term losses. The balance sheet remains modestly healthy, with a net cash position and minimal debt, but cash burn and lack of revenue scale create a high-risk profile. The stock trades at a very high price-to-sales multiple due to the tiny revenue base, implying that any upside largely rests on successful commercialization of life sciences/CBD products and/or securing larger infrastructure contracts. The investment case hinges on execution: if IGC can translate R&D investments into repeatable revenue streams and secure meaningful contracts, the evaluation could improve. Until then, the stance remains highly speculative and risk-tolerant investors should closely monitor liquidity, product milestones, and any financing activity that could affect ownership stakes.
Key Investment Factors
Growth Potential
High-sensitivity to commercialization of life sciences/CBD offerings and any new infrastructure contracts. Revenue growth is visible YoY but remains limited in scale; meaningful upside requires execution on product launches, licensing deals, or contract wins that can accelerate revenue without disproportionately increasing fixed costs.
Profitability Risk
Regulatory risk in hemp/CBD markets, potential dilution if financing is pursued, persistent negative earnings as R&D/SG&A remain elevated, liquidity risk given limited cash flow generation, and reliance on a small revenue base with few visible near-term catalysts.
Financial Position
Balance sheet shows modest liquidity with cash of ~$1.20M and net cash position (~$0.85M). Very low debt load provides flexibility, but negative operating cash flow and small scale raise concerns about sustaining operations without external financing. The company’s P/S multiple is elevated due to the tiny revenue base, signaling a high-risk investment profile.
SWOT Analysis
Strengths
Diversified business model across Infrastructure and Life Sciences; potential cross-segment synergies.
Net cash position with limited leverage; strong balance sheet visibility relative to revenue scale.
Geographically diversified footprint (United States, India, Colombia, Hong Kong) which may mitigate country-specific risk.
Healthy gross margin (approximately 58%) given the current mix, suggesting cost of revenue discipline on a small revenue base.
Weaknesses
Material operating losses and negative EBITDA; persistent cash burn despite revenue growth.
Tiny revenue scale which magnifies the impact of fixed costs and makes profitability elusive.
Heavy R&D and SG&A spend without clear near-term revenue realization.
Limited liquidity runway and reliance on external financing for potential future funding.
Opportunities
Commercialization of Hyalolex and Holief CBD-derived products could unlock meaningful upside if regulatory and market conditions permit scalable sales.
Potential highway construction or equipment rental contracts could drive higher utilization and revenue growth.
Expansion into additional markets or product lines within Life Sciences and CBD wellness could broaden revenue base.
Threats
Regulatory and legal uncertainties surrounding CBD/hemp products and related therapies.
Macro headwinds and competitive dynamics in the Industrials/conglomerate space with limited scale.
Funding risk if operating cash flow remains negative and external capital is needed, potentially leading to dilution.
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