Reports Results for the Third Fiscal Quarter Ended December 31, 2012 Reports Results for the Third Fiscal Quarter Ended December 31,

Business Wire

MUMBAI, India -- January 24, 2013, one of the premier online providers of news, information,
communication, entertainment and shopping services to Indians worldwide, today
announced results for its third fiscal quarter ended December 31, 2012.

The Company reported overall revenues for the 2012 third fiscal quarter of
$3.97 million, 18% less as compared to $4.81 million reported in the 2011
third fiscal quarter. On a sequential basis, overall revenues increased 3%
over $3.84 million reported in the 2012 second quarter.

Several of the new e-commerce and advertising initiatives the company has
embarked on have begun to post positive increases and as a result, the
Company’s core online advertising business in India grew approximately 7% (in
dollar terms) on a sequential basis, despite the continued challenging
economic landscape in the country. Revenue from’s online shopping
marketplace business grew 11% on a quarterly sequential basis and is now up
85% year-over-year, while maintaining a positive margin of 12%. Additionally,
during the 2012 third fiscal quarter, the range of products listed on the marketplace grew 7% from 172,000 SKUs to 184,000 SKUs.

The Company’s internet-based Local TV advertising business added three new TV
channels to its distribution network in the third fiscal quarter of 2012 and
now can reach up to 80 million individuals, while enabling local merchants in
10 Indian cities, namely, Delhi, Mumbai, Pune, Ahmedabad, Baroda, Surat,
Mysore, Bangalore, Indore and Jaipur, to advertise on seven National TV
channels – Zoom, NDTV Good Times, Times Now, ET Now, UTV Movies, Bindaas and
ABP News at a city level. Local TV advertising was launched over the past year
and has helped offset some of the weakness seen in the overall advertising
market due to the economy, though there are signs that certain verticals are
returning to more historical spending patterns.

“We are pleased with the progress we are making, and at the same time
cautiously optimistic about the sequential growth in our overall revenues for
the last three quarters. We believe that our recent growth is the result of
the changes we implemented two quarters ago where we revamped our sales
strategy for our online advertising businesses and focused investments on
growth-driven programs, specifically related to our online shopping
marketplace and internet-based Local TV advertising business,” said Ajit
Balakrishnan, Chairman and Chief Executive Officer of

“While broadband growth in India continues to progress, albeit at a slow pace,
the mobile user base in India is growing fast and holds vast potential for our
Company. As per Nielsen Informate Mobile Insight, there are already 27 million
smartphone users in urban India and this market has grown rapidly. As a part
of our strategy of positioning Rediff for future growth, we are focusing our
efforts to drive usage of our services among mobile phone users, in addition
to our traditional internet offerings. As a step in this direction, our
popular services including Mail and News are now available in the form of
mobile applications on leading operating systems such as Android, iOS,
Blackberry, Windows, Symbian and Java,” Mr. Balakrishnan continued.

The Company reported an Operating EBITDA loss of $2.0 million for the 2012
fiscal third quarter as compared to an Operating EBITDA loss of $1.73 million
in the comparable year-ago period.

The Company also reported a net loss of $3.0 million for the 2012 fiscal third
quarter, including a non-cash goodwill impairment charge of $2.0 million
arising from our acquisition of the print newspaper “India Abroad” in the
United States in 2001, offset by a one time gain of US$ 1.4 million from the
sale of an investment. The charge does not impact our cash or liquidity

(Operating EBITDA is a non-GAAP financial measure. Please see further below in
a tabular form in this release, the reconciliation of Operating EBITDA to net

Further details of’s results for the third fiscal quarter ended
December 31, 2012 are appended in tabular form to this press release. A script
of the earnings results conference call held on January 24, 2013 will also be
made available on Rediff’s Investor Information website at

About (NASDAQ: REDF) is one of the premier worldwide online providers of
news, information, communication, entertainment and shopping services to
Indians worldwide. Founded in 1996, is headquartered in Mumbai,
India with offices in New Delhi, India and New York, USA.

Safe Harbor

Except for historical information and discussions contained herein, statements
included in this release may constitute "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, and reflect
our current expectations. Forward-looking statements are identified by certain
words or phrases such as "may," "will," "aim," "will likely result,"
"believe," "expect," "will continue," "anticipate," "estimate," "intend,"
"plan," "contemplate," "seek to," "future," "objective," "goal," "project,"
"should," "will pursue" and similar expressions or variations or negatives of
such expressions. These statements involve a number of risks, uncertainties
and other factors that could cause actual results to differ materially from
those that may be projected by these forward-looking statements. These risks
and uncertainties include but are not limited to the slowdown in economies
worldwide and in the sectors in which our clients are based, the slowdown in
Internet and IT sectors worldwide, competition, the success of our past and
future acquisitions, attracting, recruiting and retaining highly skilled
employees, technology, acceptance of new products and services, the
development of broadband Internet and 3G networks in India, legal and
regulatory policies, managing risks associated with customer products and the
widespread acceptance of the Internet as well as other risks detailed in the
annual report on Form 20-F and other reports filed by India Limited
with the U.S. Securities and Exchange Commission. India Limited and
its subsidiaries may, from time to time, make additional written and oral
forward-looking statements, including statements contained in the Company's
filings with the U.S. Securities and Exchange Commission and our reports to
shareholders. India Limited does not undertake to update any
forward-looking statement that may be made from time to time by or on behalf
of the Company.


(All figures are in US$ millions, unless otherwise indicated below)
                                               Quarter ended December 31
                                               2012           2011
India Online                                    3.20           3.89
US Publishing                                   0.77           0.92
Total Revenues                                  3.97           4.81
Cost of Revenues *                              (2.45)         (2.54)
Gross Margin                                    1.52           2.27
Gross Margin %                                  38%            47%
Operating Expenses *                            (3.52)         (4.00)
Operating EBITDA                                (2.00)         (1.73)
Depreciation / Amortization                     (0.93)         (0.81)
Interest Income                                 0.51           0.56
Other Income (refer note below)                 1.41           0.83
Goodwill impairment charge                      (2.00)         -
Foreign Exchange gain (loss)                    0.01           (0.04)
Equity in net loss of equity method investee    -              (0.01)
Net loss before income taxes                    (3.00)         (1.20)
Tax                                             -              -
Net loss (refer to note below)                  (3.00)         (1.20)
Net loss per ADS (in US dollars)                (0.109)        (0.043)
Net loss per ADS (in US dollars) diluted        (0.109)        (0.043)
Weighted average ADS Outstanding (in millions)  27.59          27.59
* Stock based Compensation included in:                       
Cost of revenue                                 0.01           0.01
Operating expenses                              0.15           0.21


  *Each ADS represents one half of an equity share.
  *The above numbers are subject to audit. An audit could result in
    adjustments which would result in the audited numbers varying from the
    numbers set forth above.
  *The company established an ESOP trust for the benefit of employees, which
    has acquired 1,015,000 shares (equivalent to 2,030,000 ADSs). These shares
    are treated as treasury stock and therefore are excluded from the EPS
  *During the quarter ended December 31, 2012 the company exited from one of
    its equity investments, which accounted for a one time gain from the sale
    of the investment of US$ 1.4 million included under the heading Other

Non-GAAP Measures Note

Operating EBITDA and non-GAAP operating expenses are the non-GAAP measures in
this press release. These measurements are not recognized under generally
accepted accounting principles (“GAAP”).

Operating EBITDA represents loss from operations prior to adjustments for
depreciation/ amortization, non-recurring items and other income or expense
and tax. However, other companies may calculate operating EBITDA differently.
Operating EBITDA is not intended to represent cash flows as defined by
generally accepted accounting principles and should not be considered as an
indicator of cash flow from operations. We have included information
concerning Operating EBITDA in this press release because management and our
board of directors use it as a measure of our performance. In addition, future
investment and capital allocation decisions are based on Operating EBITDA.
Investors and industry analysts use Operating EBITDA to measure the Company’s
performance compared to historic results and our peer group. The
reconciliation between Operating EBITDA and net loss, the GAAP measure, is as


(All figures are in US$ millions)
                                             Quarter ended December 31
                                             2012           2011
Operating EBITDA (Non GAAP)                   (2.00)         (1.73)
Depreciation / Amortization                   (0.93)         (0.81)
Interest Income                               0.51           0.56
Other Income                                  1.41           0.83
Goodwill impairment charge                    (2.00)         -
Foreign Exchange gain (loss)                  0.01           (0.04)
Equity in net loss of equity method investee  -              (0.01)
Net loss before income taxes                  (3.00)         (1.20)
Tax                                           -              -
Net loss (GAAP)                               (3.00)         (1.20)

Non-GAAP operating expenses represent our operating expenses comprised of
sales and marketing, product development and general and administrative
expenses excluding depreciation and amortization and foreign exchange gain
(loss). We have used non-GAAP operating expenses measure to compute our
Operating EBITDA. A reconciliation of GAAP operating expenses to non-GAAP
operating expenses is as follows:


(All figures are in US$ millions)
                              Quarter ended December 31
                              2012           2011
Operating Expenses (GAAP)      4.44           4.85
Depreciation/Amortization      (0.93)         (0.81)
Foreign Exchange gain (loss)   0.01           (0.04)
Operating Expenses (Non-GAAP)  3.52           4.00

Contact: India Ltd.
Mandar Narvekar
Investor Relations and Corporate Affairs Contact
GW Communications (U.S.A.)
Glenn Wiener, 212-786-6011
Jay Morakis, 212-786-6037
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