CMC Q1 net down 9% y-o-y

Net profit was impacted due to additional tax payout of Rs 9.60 crore on dividend received from its subsidiary, CMC America

CMC, a subsidiary of Tata Consultancy Services, net profit of Rs 53.12 crore for the first quarter ended June 30, 2013, down 9% from Rs 58.43 crore reported in the corresponding quarter last financial year.

The net profit of the company was impacted due to additional tax payout of Rs 9.60 crore on dividend received from its subsidiary, CMC Americas.  

Revenue for the quarter at Rs 486 crore was up 7% from Rs 452.3 core for the same quarter last year. On a sequential basis the company's PAT was down 13% from Rs 61.3 crore and revenue was down 7%.

“We continue to see good traction for our offerings across all business segments and geographies, despite challenging global business environment. The company added 16 clients across geographies. The company has maintained quality of revenue as its revenue from value added services and solution grew 5% q-o-q and 7% y-o-y, helping company maintain its EBITDA margins,” said  R Ramanan, CEO and MD.

The company said it is making investments in business development and R&D for future growth.