Reports Results for the Third Quarter Ended December 31, 2013 Reports Results for the Third Quarter Ended December 31, 2013

Business Wire

MUMBAI, India -- January 23, 2014, one of the premier online providers of news, information,
communication, entertainment and shopping services to Indians worldwide, today
announced results for its third quarter ended December 31, 2013.

The Company reported overall revenues for the 2013 third fiscal quarter of
$4.17 million, a 5% increase in US dollar terms and 20% increase in Indian
Rupee terms compared to the same period last year. Revenues were positively
impacted by growth in the Company’s India Online operations, which increased
7% in US dollar terms (22% in Rupee terms) to $3.42 million over the
corresponding quarter last fiscal year. Revenues from Rediff’s U.S. Publishing
business declined by approximately $0.01 million or 3% for the comparable
fiscal third quarter periods.

Gross profit margins for the three months ended December 31, 2013 were 39% as
compared to 38% in the comparable period last year. Operating expenses were
$3.12 million in the fiscal 2013 third quarter, a decline of $0.4 million as
compared to $3.52 million for the three months ended December 31, 2012.

We are fully embracing the move of online users from PC to Mobile and have now
strong mobile phone offerings for Online Shopping Marketplace, Enterprise
Email and News. We are also leading the worldwide efforts in data journalism
and you can see some examples of our work using Bayesian techniques on our
homepage under the Rediff Labs link.

“Despite the challenging economic environment and continued competitive
pressures, we have been successful in growing our business. Our gross margins
are holding firm and we continue to implement prudent cost control measures,
while strategically investing in our business. Our efforts towards introducing
content marketing and native ads, with an objective of improving our online
advertising offering, is showing early signs of success and both our
Enterprise Class Email business and Online TV Marketplace initiatives continue
to gain traction,” said Ajit Balakrishnan, Chairman and Chief Executive
Officer of

The Company’s Operating EBITDA loss declined 25% to $1.50 million for the
quarter ended December 31, 2013; the net loss was 37% lower at $1.90 million
while the net loss per ADS of $0.069 for the same period was lower to the same
extent by $0.04, compared to the same quarter last year.

Mr. Balakrishnan added, “Our goal remains to accelerate our growth and also to
bring Rediff to profitability and we are doing all that we can to achieve this
near-term. We see growth opportunities in all the markets we address including
Online Advertising, Online TV Marketplace, Enterprise Email and Marketplace
for Online Shopping. The challenge is to accelerate growth and achieve
profitability quickly.”

Further details of’s results for the third fiscal quarter ended
December 31, 2013 are appended in tabular form to this press release. A script
of the earnings results conference call held on January 23, 2014 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.

                                TABLES FOLLOW


(All figures are in US$ millions, unless otherwise indicated below)
                                                    Quarter ended December 31
                                                    2013         2012
India Online                                         3.42            3.20   
US Publishing                                        0.75            0.77   
Total Revenues                                       4.17            3.97   
Cost of Revenues*                                    (2.55  )         (2.45  )
Gross Margin                                         1.62            1.52   
Gross Margin %                                       39     %         38     %
Operating Expenses*                                  (3.12  )         (3.52  )
Operating EBITDA                                     (1.50  )         (2.00  )
Depreciation / Amortization                          (0.68  )         (0.93  )
Interest Income                                      0.34            0.51   
Other Income (refer note below)                      -               1.41   
Goodwill impairment charge                           -               (2.00  )
Foreign Exchange gain (loss)                         (0.06  )         0.01   
Net loss before income taxes                         (1.90  )         (3.00  )
Tax                                                  -               -      
Net loss                                             (1.90  )         (3.00  )
Net loss per ADS (in US dollars), basic              (0.069 )         (0.109 )
Net loss per ADS (in US dollars), diluted            (0.069 )         (0.109 )
Weighted average ADSs outstanding (in                27.59           27.59  
* Stock-Based Compensation included in:                              
Cost of Revenues                                     -               0.01   
Operating Expenses                                   0.11            0.15   


  *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
                                    2013          2012
Operating EBITDA (Non-GAAP)          (1.50  )          (2.00 )
Depreciation / Amortization          (0.68  )          (0.93 )
Interest Income                      0.34             0.51  
Other income                         -                1.41  
Goodwill impairment charge           -                (2.00 )
Foreign Exchange gain (loss)         (0.06  )          0.01  
Net loss before income taxes         (1.90  )          (3.00 )
Tax                                  -                -     
Net loss (GAAP)                      (1.90  )          (3.00 )

Non-GAAP operating expenses represent our operating expenses comprised of
sales and marketing, product development and general and administrative
expenses excluding depreciation and amortization. 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
                                     2013          2012
Operating Expenses (GAAP)             3.86             4.44  
Depreciation/Amortization             (0.68  )          (0.93 )
Foreign Exchange gain (loss)          (0.06  )          0.01  
Operating Expenses (Non-GAAP)         3.12             3.52  

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