Tata group firm CMC today posted 67.5% rise in net profit at Rs 58.43 crore for the quarter ended June 30, 2012 on the back of strong growth in domestic and international market and higher revenues from SEZ operations.
The IT company's net profit for the April-June 2011 quarter stood at Rs 34.88 crore.
"Revenues from both India and international market has grown. Americas business has also increased eight% quarter-on-quarter, while SEZ revenues are also up. All these factors have contributed to strong growth in our numbers," CMC MD and CEO Ramanathan Ramanan said.
CMC also recorded its highest ever quarterly revenue at Rs 452.28 crore in the reported quarter as against Rs 305.58 crore, up 48%. This was on the back of broad based growth with all business segments, he said.
Asked about the quarter ahead, Ramanan exuded confidence in the demand environment.
"There are opportunities for product and asset-based solutions. Clients are looking at re-engineered solutions, hi-tech, embedded solutions as well," he added.
The company's earnings before interest, taxes, depreciation and amortisation (EBIDTA) saw a positive impact of 60 basis points (0.6%) because of rupee depreciating against the dollar.
Indian IT companies are expected to benefit significantly because of the fluctaution as IT companies earn their revenues in dollars. From levels of about Rs 46 last year, rupee has nosedived to Rs 58 in the last few weeks, down over 25%.
Its subsidiary, CMC Americas, grew eight% q-o-q and 40% y-o-y in dollar terms. Other markets like Middle East and Africa and UK also saw some client addition, Ramanan said.
The company's average effective tax rate stood at 22.6% in the quarter compared to 28.1% in the previous quarter and 29.6% in Q1 last year due to ramp up of SEZ operations.
The company's revenues from customer services segment stood at Rs 90.17 crore (from Rs 75.42 crore), system integration at Rs 264.38 crore (vs Rs 170.53 crore) and IT enabled services at Rs 71.34 crore (from Rs 42.88 crore).
SEZ revenues stood at Rs 12.48 crore (up from Rs 3.97 crore) and that from education and training was at Rs 13.89 crore (compared to Rs 12.77 crore).
Its cash and cash equivalent stood at Rs 236 crore, an increase of Rs 26 crore during the quarter.
The company added 20 clients during the quarter and its headcount stood at 10,714.