CMC net up 15% in Q3

Higher net sales, lower tax expenses lend support to company's bottomline

CMC Ltd, a Tata Consultancy Services subsidiary, has reported a consolidated net profit of Rs 70.54 crore for the quarter ended December, a rise of 15 per cent compared to the year-ago period. Higher net sales and lower tax expenses aided the rise in profit.

For the December quarter, the information technology solutions provider’s consolidated net sales stood at Rs 560.92 crore, up 14 per cent compared to a year earlier, with the systems integration segment contributing the most, followed by the customer services vertical.

“This quarter, the revenue growth has been in line with our expectations, considering traditionally, the third quarter isn’t a growth quarter in international markets,” said Chief Executive Officer and Managing Director R Ramanan. “The company continues to find good traction across geographies and added 14 clients during the quarter.”

Tax expenses of CMC Ltd fell to Rs 16.71 crore in the period under review from Rs 19 crore in the same period last year.

CMC’s operating profit also rose eight per cent in the December quarter even as its total expenses increased 12 per cent year-on-year.

The Hyderabad-based company’s operating profit stood at Rs 84.16 crore in Oct-Dec, while its total expenses bloated to Rs 476.80 crore.

Sequentially, the company did not witness much change in its net sales and were only marginally up from Rs 560.74 crore recorded in September quarter. Net profit was up 4.8 per cent from September quarter.

CMC currently operates out of 18 offices and 180 service locations in the country. It employs over 10,000 people and also has a wholly owned subsidiary in the US.