Update On Ingress

Ingress reported its earnings last night. Since I had recently blogged on Ingress, I have decided to do an update on it. ( Recent postings here: Ingress )

Here's the snap shot of their earnings.


And I was rather interested to look at its balance sheet given the recent fiasco where Ingress Fails To Make Sukuk Repayment, Stock Gets Slammed!

Firstly this was what the company said in its earnings notes.

• Performance Review for the Third Quarter of Financial Year 2010 (FY10)
  
  For the current quarter, the Group registered a profit before tax of RM8.1 million on a revenue of RM158.5 million in comparison to previous financial year corresponding quarter revenue of RM155.9 million and profit before tax of RM4.6 million.
  
  the Automotive Division (AD) recorded a profit before tax of RM8.7 million and revenue of RM141.0 million as against previous financial year corresponding quarter profit before tax of RM5.9 million and revenue of RM133.5 million.
  
  the Power Engineering and Projects Division (PEP Division) recorded a revenue of RM17.5 million and profit before tax of RM22,000 in comparison to previous financial year corresponding quarter revenue of RM22.4 million and loss before tax of RM0.8 million. Together with its associate companies, the overall PEP Division recorded profit before tax of RM0.3 million in comparison to previous financial year loss before tax of RM0.8 million.

Once again, the automotive division makes the money for Ingress and as stated several times before in the older postings (such as this one Regarding Ingress Corporation Again ), Ingress's Power Engineering sector (now called PEP, last time Ingress referred it as PER) simply isn't performing. Which is why I was rather amused at the fuss on Ingress when Ingress announced it "has clinched a RM61.9 million contract from Tenaga Nasional Bhd (TNB)". ( see posting Today's Hot Stock: Ingress Corporation )

The Sukuk issue (see page 18).

• On 17 June 2009, an Extraordinary General Meeting ("EGM") of the Sukukholders notice was issued to convene the EGM on 2 July 2009 to consider a resolution to extend the maturity date of the first tranche of the Sukuk due on 9 July 2009 to 9 January 2010 to enable the Company to formulate and finalise a comprehensive financial restructuring plan for the whole of the Ingress Group (the Resolution).
  
  On 2 July 2009 at the EGM of the Sukukholders, the above Resolution was duly passed.
  
  Since then, the Company has been in close negotiations with the Sukukholders over the terms of a restructuring plan.

Ok, they are in close negotiations but the 9th January 2010 deadline draws close. And as highlighted in the posting Ingress Fails To Make Sukuk Repayment, Stock Gets Slammed!

• Ingress Corporation Bhd is unable to deposit RM25 million, which is 50% of the Sukuk first principal repayment of RM50 million, which was due on April 9.

Let's see how much loans Ingress has.

And this is Ingress cash balance.


If you compare to the previous postings on 2 July 2009, Ingress: Where Is My Dearest UMA? , there's a slight improvement.

How?

There's positive turnaround in its earnings but then, there is still the sukuk issue. Would an investor betting on a 'turnaround' play on this stock, gets a nasty surprise when the sukuk repayment draws closer?