CMC Limited announced its financial results for the quarter ended June, 2005. The total revenue of the company increased by 10.7 per cent to Rs. 204.51 crore compared with Rs. 184.78 crore earned in the corresponding period in the previous year. The company's profit before tax for the same period increased by 14.6 per cent to Rs. 23.56 crore compared with Rs. 20.56 crore in the corresponding period in the previous year. The profit for the current period is inclusive of Rs. 13.96 crore of gains on sale of certain surplus residential properties, while the profits of corresponding period last year was inclusive of one time license fee of Rs. 10.4 crore. The Company made a provision of Rs. 8.23 crore for income tax and fringe benefit tax during the period. The Fringe Benefit Tax amounted to Rs. 0.75 crore. The profit after tax for the period is Rs. 15.33 crore.

The consolidated revenues of the company along with its wholly owned subsidiary, CMC Americas, for the quarter ended June, 2005 increased by 12.7 per cent to Rs. 215.18 crore as compared to Rs. 190.97 crore in the corresponding period in the previous year. The consolidated profit after tax for the quarter ended June, 2005 is Rs. 15.97 crore.

The revenue of CMC Americas grew 35 per cent to $ 6.10 million as compared to $ 4.51 million in the corresponding period in the previous year. The Company added new clients in the areas of Infrastructure management, ports and cargo solutions and software reengineering services apart from increased embedded systems business from the clients acquired in later part of last year.

Mr. R Ramanan, MD & CEO said: "CMC's growth engines like embedded systems and the North American market are witnessing significant traction and with our joint go-to-market strategy with TCS, we expect them to continue to contribute significantly to the top-line and bottom-line."

The Company is strongly focusing on the niche area of embedded systems and has doubled its revenue from embedded systems during the quarter compared with corresponding period in the previous year. The Company has chartered a joint Go-to market strategy with its parent Company Tata Consultancy Services Limited to achieve accelerated growth in embedded systems business globally. Both the Companies are also collaborating in the areas of exploration of markets, competency building, creation of facilities, developing technologies, sharing best practices and joint execution of projects.

The joint go to market approach in other areas of operations has also helped the Company win some large turnkey projects in this quarter in the e-Governance, Retail and BFSI segments in line with the strategies being pursued by 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. 814 crore for 2004-05. Operating out of 18 offices and 180 service locations in the country, CMC Limited employs around 3300 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.