CMC posts marginal rise in Q3 net
The Hindu Business Line - January 15, 2008
Mumbai: CMC Ltd, a subsidiary of Tata Consultancy Services (TCS), has recorded a 7.3 per cent rise in consolidated net profit for the third quarter ended December 31 to Rs 21.9 crore against Rs 20.4 crore reported in the same quarter a year ago.
Moreover, net revenues were flat at Rs 294.8 crore (Rs 300.4 crore). On a sequential basis, however, the company's net profit was down by 4.7 per cent from Rs 23 crore on account of a one-time bonus provision that amounted to Rs 2.8 crore.
"These bonus payments had to be made owing to a change in the Bonus Act, which now covers employees up to the Rs 10,000 bracket. As the norms were changed with effect to April 1, 2006, we had to make provisions for several quarters of the last financial year in the December quarter itself," said Mr J.K. Gupta, Chief Financial Officer, CMC.
In the previous sequential quarter, net profit was buoyed by Rs 5 crore in other income against Rs 68.6 lakh in December quarter.
The CMC scrip hit an intra-day low of Rs 1,141.1, before settling at Rs 1,159.2, 6.3 per cent lower than its previous close on the BSE.