CMC's net profit increases by 84 per cent in HYE September, 2004
Oct 11, 2004

Company release
CMC Limited, India's premier IT company of the Tata group, today announced its financial results for the half year ended September 2004. The total revenues of the company increased by 5.4 per cent to Rs. 361.78 crore compared with Rs. 343.16 crore in the corresponding period in the previous year.

The company's profit after tax increased by 84 per cent to Rs. 30.51 crore compared Rs.16.56 crore in the corresponding period in the previous year. The consolidated revenues of the company along with its wholly owned subsidiary, CMC Americas Inc., for the same period was Rs. 375.01 crore compared to Rs. 364.80 crore achieved in the corresponding period last year.

The consolidated profit after tax increased by 107 per cent to Rs. 31.68 crore compared with Rs.15.32 crore achieved in the corresponding period last year. "The profitability growth is driven by an increase in share of international business from 17per cent to 25per cent," said J K Gupta, CFO. International business grew by 53 per cent during the first half of the current year compared with the corresponding period last year.

Commenting on CMC's performance during the first half of the current financial year, R Ramanan, MD and CEO, said, "The company continues to achieve strong growth in international business mainly driven by successes in the Middle East and Africa region. The company has been strategically shifting its focus from equipment supply driven business to services. The company's revenues from services during the first half of the year have grown by 24 per cent. The share of services in total revenue increased from 48 per cent to 56 per cent during the period under review. The education and training segment of business continues to show strong performance with 68 per cent growth over the corresponding period last year."