CMC's net profit more than doubles in Q1 FY2004-05
Mumbai, July 17, 2004

CMC Limited, India's premier IT company of the Tata group, today announced its financial results for the quarter ended June 30, 2004. The total revenues of the company increased by 16 per cent to Rs 184.78 crore from Rs 159.26 crore in the corresponding period last year. The company's profit after tax more than doubled to Rs 17.82 crore recording an increase of 119 per cent over the corresponding period in 2003-04. The consolidated revenues of the company along with it's wholly owned subsidiary, CMC Americas, Inc, for the same period was Rs 190.97 crore, recording an increase of 11per cent over Rs 171.49 crore achieved in the same period last fiscal. The consolidated profit after tax increased by 118 per cent to Rs 18.74 crore. "The profitability growth has been driven by higher value add service revenue, increase in share of international revenue from 18 per cent to 26 per cent and improved manpower productivity", said Mr J K Gupta, CFO.

Commenting on CMC's performance Mr R Ramanan, MD and CEO, said, "The company has turned out the best ever first quarter performance by more than doubling its net profit. The international strategy of the company has started paying off. The company has a clearly defined strategy of leveraging its core competencies in complex systems integration solutions, embedded systems design and development, end to end IT iInfrastructure management and the emerging areas of IT-enabled services, knowledge management services such as e-learning and corporate training in the international market place."

The company achieved some major successes in the Middle East and Africa region in the areas of healthcare, insurance and education during the quarter. The company also made a beginning in the BPO space for some of its clients in the USA. The company had established a dedicated ODC at Hyderabad for Xilinx in the last quarter, which has progressed well in this quarter. In the domestic market, the company continued its strong hold in state and central governments, BFSI, oil and petro, railways and defense segments of the market. While the customer services SBU continues to be the main revenue earner of the company, the highlights of its performance have been 64 per cent growth in systems integration revenue and 93 per cent growth in the education and training (E&T) SBU's revenue during the quarter. E&T business unit's new initiatives in corporate training have enabled it to make a strong comeback.

Outlining the growth opportunities Mr Ramanan said, "Given its strong track record of successful handling of large national IT initiatives, the company is positioning itself as strong contender for emerging opportunities in eGovernance space in India and in the international markets along with TCS. We are also implementing some of the best practices of TCS in the areas of internal systems, project management and resource management."

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 a part of the Tata group and is working closely 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