CMC's revenues up 24 per cent to Rs 764 crore for 2003-04
Mumbai, April 26, 2004

CMC Limited, India's premier IT company of Tata group today announced its audited financial results for the year ended March 2004. The total revenues of the company increased by 24 per cent to Rs 763.67 crore compared with Rs 614.73 crore in the previous year. The company earned profit after tax of Rs 47.99 crore recording an increase of 30 per cent over the previous year. The consolidated revenues of the company along-with it's wholly owned subsidiary, CMC Americas, Inc for the year 2003-04 was Rs 801.75 crore, recording an increase of 18 per cent over Rs 679.09 crore achieved in the previous year. The consolidated profit after tax increased by 23 per cent to Rs 44.77 crore.

The company's board of directors has proposed a dividend of Rs 5.50 per share, an increase from Rs 4.00 per share paid past year, subject to approval of the shareholders. "The revenue growth during the year has been mainly driven by customer services SBU in the domestic market and systems integration SBU solutions in the international market", said Mr J K Gupta, CFO. He further added that 19 per cent growth in international service revenue helped bringing down effective tax rate for the year from 34.6 per cent to 27.0 per cent.

Commenting on CMC's performance during the current year Mr R Ramanan, MD and CEO, said, "That company continues to focus on its core competencies which revolve around implementing complex systems integration solutions, hi tech embedded systems design and development, end to end IT infrastructure management and the emerging areas of IT-enabled services, knowledge management services such as eLearning and corporate training. The company had identified Middle East and Africa region as areas with good opportunities and opened an office in Dubai in the beginning of the year to address these opportunities.

The company achieved significant successes in this region in the areas of banking, securities, insurance, biometric solutions and railways during the year. The company has been able to establish itself as an important international player in the hi-tech embedded systems area and is servicing a number of international clients. The company has set up a dedicated offshore development centre (ODC) at its Hyderabad facilities to develop field programable gate arrays (FPGA) based solutions for one of the largest supplier of programmable logic solutions in the world. The company continues to occupy prominent position in state and central government, banking and financial service institutions, oil and petro, railways and defence segments of the market."

Outlining the strategy for growth, "The company has an array of well established software products and solutions, end to end service capabilities, vast repository of experience and skills, pan India network of service locations and a large customer base. The company is uniquely positioned to exploit emerging opportunities for growth in business by leveraging its competencies and strengths and wider geographic reach of TCS. We are augmenting our offshore facilities to further enhance our overseas revenues. We are also implementing some of the best practices of TCS in the areas of internal systems, project management and resource management."

Mr Ramanan said, "Last year has been an eventful year for the company, when Government of India sold its remaining shareholding in the company through book building process. The offer for sale evoked overwhelming response from the investing community. As a result of this offering, the shareholding of banks, institutions, FIIs and public has gone up to 49 per cent. FIIs now hold 7.4 per cent shares in the company."

About CMC
Incorporated in 1975, CMC is one of the premier information technology solutions providers in India, with a consolidated turnover of Rs 802 crore for 2003-04. Operating out of 18 offices and 180 service locations in the country, CMC Limited employs around 3,000 people and has a wholly owned subsidiary in USA called CMC Americas, 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