CMC profit up 45% on high revenue

Company added 15 new clients, hired 219 people during the quarter

CMC Ltd, a subsidiary of information technology company Tata Consultancy Services, reported a consolidated net profit of Rs 89.43 crore for the quarter ended March, up 45 per cent compared to the year-ago period, primarily due to an increase in revenue and higher other income.

The company’s consolidated revenue jumped 19 per cent year-on-year to Rs 623 crore, backed by a one-time gain of Rs 19 crore from a favourable decision in a legal case with customers during the quarter.

Sale of some of the company’s fixed assets contributed to the high other income of Rs 9.69 crore, said R Ramanan, chief executive officer and managing director.

Sequentially, the company's consolidated net sales rose 11 per cent, while net profit increased 27 per cent.

“We continue to see good traction and client addition across geographies,” said Ramanan.

In the March quarter, the company added 15 clients —12 in India and three in the US.

The company's software solutions had found increased acceptance in new regions, primarily in West Asia, Africa and Asia-Pacific, said Ramanan.

“During the quarter, we have hired 219 people, a combination of freshers and laterals,” he added.