CMC net profit rises 109 %

Business Standard, April 15, 2007

CMC, a subsidiary of IT behemoth Tata Consultancy Services, posted a consolidated (unaudited) net profit of Rs 20.82 crore for the fourth quarter ended March 31, 2007, a 109 per cent year-on-year rise (YoY) and a 8.2 per cent increase over last quarter's figure (QoQ) of Rs 19.24 crore. Its consolidated (unaudited) revenues for the quarter stood at Rs 290.58 crore, a 4.13 per cent YoY increase and a 0.9 per cent QoQ increase.

For the full year ended March 31, 2007, the company's consolidated (audited) profit after tax (PAT) stood at Rs 69.32 crore, registering an increase of 43 per cent compared with Rs 48.54 crore in the previous year.

The company's total consolidated revenues as on March 31, 2007 stood at Rs 1085.30 crore, 18 per cent higher when compared with the last financial year's Rs 916.16 crore. The company announced an increase in dividend to Rs 8 a share for 2006-07, compared with Rs 5 a share for 2005-06.

The company's share of international revenues as a part of operating revenues increased from 28 per cent to 35 per cent and the US subsidiary business grew by 32 per cent.

"Sustained growth in the American and UK markets helped CMC to achieve impressive growth in international business, where we won new engagements in IT-enabled services and embedded systems as well as a significant digitisation assignment from a large utility company in UK and a large financial portal in the US in synergy with TCS", said R Ramanan, CEO and MD of CMC.

All the four strategic business units of the company contributed to a growth in revenues. The operating margin saw an expansion of 355 basis points due to improved business mix and manpower productivity. The operating profit (EBITDA) increased by 99 per cent to Rs 98.97 crore compared with Rs 49.79 crore in the previous year.

The standalone revenues of the company for the year ended March 2007 increased by 16 per cent to Rs 994.40 crore as compared with Rs 857.76 crore in the previous year. The net profit is Rs 64.10 crore, an increase of 44.11 per cent over Rs 44.11 crore earned in the previous year.