Mumbai-based CMC, a Tata Consultancy Services (TCS) subsidiary, today reported a 44% increase in its consolidated (unaudited) net profit at Rs 23.42 crore for the first quarter ended June 30, 2007, as compared to Rs 16.16 crore in the corresponding period of the previous financial year.However, the company's total income declined by 4.48% to Rs 240.75 crore from Rs 252.05 crore on a year-on-year basis this quarter. The stock closed the day at Rs 1,298.90, down by Rs 161.90 or 11.08%.When compared with the previous quarter's figures, CMC's net profit grew by 12.50% from Rs 20.82. But the revenue was down by 17.14% from Rs 290.57 crore.In terms of segment-wise revenues, customer services (CS) saw a drop of 15.40% to Rs 115.45 crore during the quarter compared to Rs 136.47 crore earned for the same quarter last financial year. But the systems integration (SI) and information technology-enabled services (ITeS) segment revenues grew 5.40% and 5.34% respectively. Its education and training business unit grew 65% and contributed Rs 10.52 crore for the quarter from Rs 6.36 crore.CMC's international revenues were 40% for this quarter. The company is looking at a mix of 45:55 mix from international and domestic market. The company said it will be working with TCS to get some high value-added services deal in the infrastructure space, government, defence, railways and transport projects.Moving ahead, the company will be focusing on its education and training segment along with the SI and the CS businesses. This quarter saw a good growth in the education and training and SI and ITeS segment due to the change in the business focus. The company has moved away from its box-selling approach to providing value-added services to its customers. Though the revenues are down, the share of services have increased.
