CMC, subsidiary of Tata Consultancy Services (TCS), reported a net profit of Rs 49.39 crore for the second quarter ended September 30, 2012, was up 51.4% from Rs 32.6 crore in the same quarter last year. Revenue for the quarter was up 28% year on year.
Drop in equipment sales business due to lumpy business and forex loss impacted the company's sequential performance. On a quarter on quarter basis (compared to last quarter) CMC's net profit was down 15%, and topline grew by about 1.3%.
"We have been able to grow our business well during this quarter. The services segment grew by 6%. Our equipment sales business was down due to lumpy business. It was down 42% sequentially. We also managed to grow our international business, US business grew by 5% this quarter," said R Ramanan, CEO and MD CMC. The company added 15 clients during the quarter.
CMC also announced a salary hike of 3-8% for the quarter. With a total employee base of 10,751, CMC brought down its attrition from 18.1% in the last quarter to 17.9% in the September ended quarter.
Going ahead Ramanan said that traction of business from US and Europe continues to be strong, "especially for our embedded and real-time solutions and SI offerings. So far we have not seen any delay in contract closure or any pressure on pricing."
