CMC PAT up 23%

HYDERABAD: CMC Ltd, an IT company of Tata Group, has earned a profit after tax (PAT) of Rs 11.74 crore for the quarter ended June 2003, recording an increase of 23 percent over the previous year. The total revenues of the company jumped 63 percent to Rs 159.26 crore compared with Rs 97.71 crore in the corresponding period last year.

The consolidated revenues of the Company along-with it’s wholly owned subsidiary, CMC Americas, Inc. (Formerly known as Baton Rouge International, Inc.) for the quarter ended June 2003 was Rs 171.49 crore. The consolidated profit after tax was Rs 12.21 crore. Customer Services, Indonet and international business drove the revenue growth during the quarter.

Commenting on CMC’s performance during the year 2002-03, CMC DMD & COO R Ramanan said, “The Company has turned out strong performance in the first quarter despite the challenges. The Company has been experiencing sluggish growth in domestic IT spend, emergence of new competition and pricing pressures. The company has been able to achieve some significant successes in new order booking. We have booked new orders worth about Rs 185 crore during the quarter, compared with Rs 86 crore booked in the corresponding period last year. In addition, the Company has been declared winner for quite a few new jobs during the quarter, firm orders for which will be signed soon. In this backdrop the outlook appears bright and we are confident that, the Company will be able to continue to grow in the remaining quarters of the year.”

Outlining the strategies for growth, CMC MD and CEO SS Ghosh said, “The Company is aggressively pursuing the goal to provide one-stop-shop solution to our clients. We are leveraging our domain expertise and TCS’s international reach the replicate our successes in domestic market to deliver value to our international clients. In order to protect our margins and as a de-risking strategy, we are focusing on new geographies.”

(CNS)