CMS Q1 Net up 10 pc at Rs 58.42 cr

Tata Consultancy Services arm CMC today reported about a 10 per cent rise in consolidated net profit at Rs 58.42 crore for the June quarter driven by broad- based growth across India and overseas markets.
The consolidated net profit stood at Rs 53.12 crore in the corresponding quarter last year.
However, the company's standalone post-tax profit more than halved to Rs 41.92 crore from Rs 94.53 crore in the first quarter ended June 30 due to a change in computing depreciation and forex losses.
CMC Managing director and Chief Executive R Ramanan attributed the bad set of numbers to a hit of Rs 24 crore due to a change in policies of computing depreciation and a loss of Rs 10 crore on account of the appreciation in the rupee during the reporting quarter.

"On a net basis, our profits would have been 15 per cent higher on a quarter on quarter basis if we exclude the one time impacts," Ramanan told PTI after the announcement of the results.
"As per the provisions of the Companies Act, there was a change in the way we calculated depreciation on items like our buildings and computer peripherals, resulting in a hit of Rs 24 crore," he added.

Additionally, in the numbers of the year-ago period, there was a gain of Rs 19 crore on the revenues coming from a favourable court ruling, he said, pointing out that there has been an increase in revenue.

Income from operations grew to Rs 314.66 crore from Rs 271.97 crore on a standalone basis, while on a consolidated basis, it grew to Rs 592.63 crore from Rs 486.03 crore.
During the reporting quarter, the company won 12 deals including nine domestic and three international ones, Ramanan said, adding that revenues from the deals will flow for the next three quarters.
The deals are spread across the segments in which it operates, including embedded systems and systems integration, he said.
He said internationally, the Middle East, Africa and the European markets are witnessing traction for CMC's services, while domestically, the Budget is a big positive.

"There are growth opportunities in the Railways, infrastructure, smart cities, intelligent transport systems and insurance sectors domestically," he said.
Ramanan said that the company will outpace the industry, both in terms of revenue growth and margins, while stating that it is targeting to maintain a growth of revenue at the current level of around 22 per cent.
The company at the same time expects some expansion in the margins at 15-17 per cent for the fiscal (as against 15.6 per cent in the reporting quarter).
The company scrip gained 2.80 per cent to close at Rs 1,979.05 apiece on the BSE.