Mumbai: Increased traction from higher-margin services like system integration and education & training is likely to see CMC expand its operating profit margin to 12-15% over 12-18 months from 11% now, Ramanathan Ramanan, managing director and CEO said.

The company is also looking at increasing its international business to 40-45% of total revenue from 35% over the same period.

For the quarter ended December, CMC reported a 1.6% year-on-year decline in net revenues to Rs. 294 crore. While net profit went up 7.3% to Rs. 21.90 crore on a consolidated basis. Sequentially, revenue grew 10%, while net profit felt 3%. Operating profit margins fell almost 100 basis points sequentially to 11.15%.

J K Gupta, chief financial officer, said in the last two-three years the company has begun to defocus on the equipment business. "Our focus is now on increasing our services, international, and private sector business," he said.

Rabin Ghosh
Email: g_rabin@dnaindia.net