CMC's 2002-03 turnover up to Rs 679.09 crore; net jumps 85 per cent
New Delhi, May 7, 2003

CMC Limited, India's premier IT company today announced its audited financial results for the year ended March, 2003. The total revenues of the company increased to Rs 614.73 crore in year ended March 31, 2003, an increase of 8.7 per cent over previous year. The Company earned profit after tax of Rs 37.05 crores recording an increase of 10.1 per cent over the previous year. The consolidated revenues of the Company along-with its wholly owned subsidiary, Baton Rouge International, Inc. for the year 2002-03 was Rs 679.09 crores, recording an increase of 5.4 per cent. The consolidated profit after tax jumped 85.1 per cent to Rs 36.37crore.

Commenting on CMC's financial performance during the year 2002-03, the company's Managing Director and CEO, Mr S S Ghosh said, "During the 2002-03 we have progressed further towards globalisation of CMC products and services in line with our objective set out at the beginning of the year. We had success with international customers in areas of banking, ports automation, railway services and have encouraging responses for many or CMC's other S / W application packages.

These projects and synergy with other overseas projects of TCS has helped us to improve our overseas earning substantially. In domestic we have undertaken very large G to G and G to C projects for many State and Central Government departments which enabled CMC to improve sales by 8.7 per cent. With better earnings from services and S / W projects in domestic and international areas we could achieve an increase in net profit by 10.1 per cent."

Outlining CMC's plans for the future, Mr R Ramanan, DMD and C00, added, "CMC continues to focus strongly on increasing on the value adding components of its services both in the domestic market and through its synergies with TCS in the global markets. CMC has unique assets and competencies that enable the above."

CMC's diversified expertise came to the fore with several multi-crore projects implemented in key Government and industrial sectors and several prestigious international contracts won during the year.

Some of them are: an international project from the National Bank of Bahrain for installation and implementation of the core banking solution — TC-4, provisioning of railway automation system for Syrian Railways, integrated marine container handling system (MACH) and cargo logistics management system (CALM) for some large overseas customers.

Sizeable projects were also won from many large domestic banks to build their infrastructure for modernization.

Another prestigious win for CMC has been from State Government of Karnataka for the computerization of state-wide value added tax implementation from commercial taxes department. The commendable work done by CMC during implementation of computerization of treasuries of Karnataka helped in clinching the order.

Customers services business unit, the major revenue earner continues to enjoy a leadership position in hardware maintenance services and network integration. It has ventured into newer areas like ERP implementation in line with the need to offer total infrastructure development & management services., the major revenue earner continues to enjoy a leadership position in hardware maintenance services and network integration. It has ventured into newer areas like ERP implementation in line with the need to offer total infrastructure development and management services.

The systems integration SBU continues to focus and achieve success in domain specific areas of insurance, banking, transport, eGovernance, law and order, power, water management et al, demonstrating its breadth of capability, competitive edge and potential. The focus is on leveraging our domain expertise and TCS worldwide presence to increase penetration of CMC's products and services into a global market place.

Education and training (E&T) business unit continued to be adversely affected by the IT slowdown. E&T has planned certain initiatives to improve its performance. It has decided to join hands with a US based corporation, a world leader in IT training, for access to their vast library of courseware, vendor certification, and e-learning products and solutions. This should help E&T make entry into new segments of business and in faster delivery schedules. E&T plans to introduce new courses like IT security, call centre, multimedia, and special courses for industry verticals like insurance, banking and finance.

E&T is working towards targeting the school segment. continued to be adversely affected by the IT slowdown. E&T has planned certain initiatives to improve its performance. It has decided to join hands with a US based corporation, a world leader in IT training, for access to their vast library of courseware, vendor certification, and e-learning products and solutions. This should help E&T make entry into new segments of business and in faster delivery schedules. E&T plans to introduce new courses like IT security, call centre, multimedia, and special courses for industry verticals like insurance, banking and finance. E&T is working towards targeting the school segment.

Information technology enabled services (ITES) SBU consolidated its strength and expertise in the newly founded technology areas like forms processing, interactive voice response system and data management system.

About CMC
Founded in 1976, CMC is one of the premier information technology solutions providers in India, with a consolidated turnover of Rs 679 crore for 2002-03. Operating out of 18 offices and more than one hundred and fifty service locations in the country, CMC Limited employs over 3,300 people and has a wholly owned subsidiary in USA called Baton Rouge International Inc.

CMC's vision is to operate globally and bring the benefit of Information Technology to improve the productivity of its customers and the quality of its customer's products and services. CMC combines horizontal expertise in Information Technology with its vertical experience developed by working in a wide range of Industries. After the successful disinvestment of CMC by the Government of India, CMC has become part of TATA Group and closely working with TCS Asia's largest software company.

Contact
Head Corporate Communication
PTI Building,
5th Floor, 4 Sansad Marg
New Delhi - 110 001
Tel: 91-11-23736151-8
Email: svr@cmcltd.com