CMC net profit rises 9% YoY

Mumbai-based CMC Ltd, a subsidiary of Tata Consultancy Services (TCS), announced a 9 per cent rise in its consolidated profit after tax to stand at Rs 24.02 crore for the quarter ended 31 March 2008, as compared to Rs 21.91 crore earned in the corresponding quarter last year.

The company, however, reported an 8 per cent decline in its revenue for the quarter ending March 2008 to Rs Rs 265.8 crore as compared to Rs 290. 58 crore in the corresponding quarter in the previous fiscal.

For the full year ending March 31, 2008, CMC reported a consolidated profit after tax of Rs 92.35 crore, registering an increase of 33 per cent when compared with the Rs 69.32 crore figure of the corresponding period, the previous year. For the same period, the company announced a total consolidated revenues of Rs 1,076.64 crore -- a marginal decline of 0.8 per cent as compared to Rs 1,085.3 crore in the corresponding period last year.

The company attributes this decline primarily to the of 3.6 per cent decline in low margin equipment revenue. The company increased its services business revenue share by 90 basis points to 63.5 per cent by corresponding reduction in equipment business. The company ended last financial year with a cash surplus of Rs 147 crore, which will enable it to finance its future growth.