CMC
net profit grows 33 per cent in FY 2007- 08 with
strong cash flows
Highlights
Consolidated Operating
Margin expansion of over 200 basis points.
Consolidated Net
profit margin expansion by 219 basis
points
Significant improvement
in cash flows – Cash accretion
of Rs. 111
crore during the year - surplus of Rs.
147 crore at the end of the
year.
American Subsidiary
business grows by 18 per cent
Enhanced dividend
of Rs. 11.00 per share of face value
of Rs. 10.00
New Delhi, April 17,
2008: CMC Limited announced total consolidated
revenues of Rs. 1076.64 crore for 2007-08
(a marginal decline of 0.8 per cent primarily
on account of 3.6 per cent decline in low
margin equipment revenue). Operating revenues
for the year 2007-08 was Rs. 1064.74 crore,
compared to Rs. 1079.81 crore earned in
the previous year. The company’s consolidated
profit after tax for the year was Rs. 92.35
crore registering an increase of 33 per
cent compared with Rs. 69.32 crore in the
previous year. The Operating Profit (EBITDA)
increased by 20 per cent to Rs. 119.06 crore
compared with Rs. 98.97 crore in the previous
year. Operating margins increased by 201
basis points over the previous year.
The company announced an increase in dividend
to Rs. 11.00 per share for 2007- 08 (Rs.
8.00 per share for 2006-07).
“In pursuit of continuing focus on
improvement in business mix, the Company
increased its services business revenue
share by 90 basis points to 63.5 per cent
by corresponding reduction in equipment
business. In addition, the Company worked
relentlessly to improve margins in equipment
business by better negotiations.” Said
R Ramanan, CEO and MD. “American
Geography contributed with 18 per cent growth
over previous year. Emphasis on growing
international business will continue.”,
added Mr. Ramanan
“Strong financial management has helped
the Company to end the year with cash surplus
of Rs. 147 crore, which will enable the
Company to finance its future growth. The
Company earned Rs. 1.47 crore as interest
and dividend from investment of surplus
funds compared to net interest expense of
Rs. 3.41 crore in the previous year.”,
said J K Gupta, Chief Financial Officer.
The standalone revenues of the Company for
the year ended March 2008 was Rs. 989.09
crore compared to Rs. 994.40 in the previous
year. Operating Profit (EBITDA) of the Company
on a standalone basis for the year ended
March 2008 increased 24 per cent to Rs.
113.44 crore compared with Rs. 91.32 crore
earned in the previous year. The net profit
on standalone basis is Rs. 88.22 crore,
an increase of 38 per cent over Rs. 64.10
crore earned in the previous year.
For the quarter ended March 2008, the company
continued its thrust on profitable business
resulting in 88 basis point expansion in
operating margin over previous quarter on
a consolidated basis. The net profit on
consolidated basis was Rs. 24.02 crore,
an increase of 10 per cent over Rs. 21.91
crore earned in the previous quarter.
About CMC
Incorporated in 1975, CMC is a pioneer Information
Technology solutions providers in India
and is a subsidiary of Tata Consultancy
Services Limited, Asia’s largest software
Company. CMC had a consolidated turnover
of Rs. 1077 crore for 2007- 08. Operating
out of 18 offices and 180 service locations
in the country, CMC employs around 3600
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
