CMC's thrust on international biz begning to pay off

www.thehindubusinessline.com

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

MUMBAI: Tata group company, CMC Limited, on Tuesday said that as a part of its strategy, it would give a strong thrust to its high-margin international and services solutions businesses.

"It is our strategy to defocus on our low-margin equipment business and give a strong thrust to our international and services solutions businesses," CMC's CFO, Mr J K Gupta said. The company's strategy to improve its business mix in the last one year ha s worked in that its operating margins and net profit margin have both expanded healthily.

The company, a subsidiary of Tata Consultancy, posted total revenue of Rs 939.83-crore in FY 09, down 12 per cent from the previous year while its consolidated PAT stood at Rs 92.34-crore.

"The revenue drop of 12 per cent as compared to the previous fiscal does not worry us - it is a part of our strategy to defocus on our equipment business. Our revenue here declined from Rs 389-crore to Rs 232-crore," he said.

CMC's international business has grown from 35-40 per cent and "our strategic intent is to achieve a 50:50 parity between our domestic and international businesses," Mr Gupta said. In its domestic business, however, the company posted a robust growth fro m its insurance solutions business, he said. - PTI