CMC Limited announced its financial results for the year 2004-2005
April 18, 2005

Mumbai: CMC Limited announced its financial results for the year 2004-2005. The total revenue of the company is Rs. 782.47 crore compared with Rs. 763.67 crore for the year 2003-2004. This is an increase of 2.5 per cent.

The company's profit after tax for the financial year 2004-2005 is Rs. 23.06 crore as compared to Rs. 47.99 crores for the financial year 2003-2004. This is primarily due to suspension of work for two international clients following their organizational re-structuring. As abundant caution and in line with Group policies, the company has provisioned for Rs. 16.00 crore for their dues. In addition, this year's miscellaneous income is lower by Rs. 9.80 crore. Last year there was a write-back of earlier-year provisions amounting to Rs. 10.14 crore.

The Board has recommended a dividend of 45 per cent, amounting to Rs. 7.77 crore (inclusive of dividend distribution tax) compared to 55 per cent declared for 2003-04 (amounting to Rs. 9.40 crore).

The consolidated revenues for the year 2004-2005 of the company along with its wholly owned subsidiary, CMC Americas, is Rs. 814.22 crore as compared to Rs. 801.75 crore for the year 2003-2004. This is an increase of 1.6 per cent.

The consolidated profit after tax for the year 2004-2005 is Rs. 24.80 crore as compared to Rs. 44.77 crore for the year 2003-2004.

The share of international business in the overall revenue increased from 18 per cent to 23 per cent. The Education and Training business of the company grew by 55 per cent over the year 2003-2004.

Strategically, the company is focusing on private sector and international customer segments. Accordingly steps are being taken to address the challenges in process improvements, compensation and attrition management.

About CMC
Incorporated in 1975, CMC is one of the premier Information Technology solutions providers in India, with a consolidated turnover of Rs. 814 crore for 2004-05. Operating out of 18 offices and 180 service locations in the country, CMC Limited employs over 3000 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.