CMC FY09 net rises 26%

www.myiris.com

Published on Wed, Apr 15, 2009 at 09:49

CMC announced a rise of 26% in the consolidated net profit for 2008-2009. During the year, the profit of the company rose to Rs 1,161.50 million from around Rs 923.37 million in the previous year. The company disclosed that the rise is due to its efforts to improve the margins by right mix of business namely value adding solutions and services.

Consolidated operating revenues for the year however, dropped 12% to Rs 9,398.30 million as compared with prior year. The drop, the company said is due to the exit from low margin hardware business by the company as a strategic intent. The operating profit (EBITDA) of the company was at Rs 1,266.90 million, a rise of 6% as against Rs 1,190.60 million in the previous year. Meanwhile, the operating margins increased by 230 basis points over prior year period.

While comparing on a quarterly basis, the company`s consolidated net profit stood at Rs 384.46 million, a rise of 60.12% over the prior year period. Consolidated net sales of the company however declined 8.93% while total income fell 8.28% over the prior year period. During the quarter, the company reported consolidated earnings of Rs 25.37 a share, rise of 60.06% over the prior year period.

On a standalone basis, the company in March 2009 reported a profit of Rs 332.69 million a rise of 44.22% over prior year period. Net sales of the company stood at Rs 2105.78 million, a decline of 12.53% while total income for the quarter fell 13.09% to Rs 2,133.64 million, when compared with the prior year period.

It reported earnings of Rs 21.96 a share during the quarter, registering 44.28% growth over prior year period.

During the year, the company announced an increase in dividend to Rs 15 a share for 2008-2009 as against Rs 11 a share for 2007-2008.

CMC is a pioneer information technology solutions providers in India and is a subsidiary of Tata Consultancy Services.

Shares of CMC gained Rs 11.85, or 3.24%, to settle at Rs 378.10. The total volume of shares traded was 3,976 at the BSE (Monday).