CMC gains after winning court case in Kuwait

CMC rose 1.72% to Rs 1,427.10 at 9:17 IST on BSE after the company said it has won a legal case against Kuwait Stock Exchange.

The company made the announcement after market hours on Wednesday, 26 March 2014.

Meanwhile, the BSE Sensex was up 28.46 points, or 0.13%, to 22,123.76.

On BSE, so far 559 shares were traded in the counter, compared with an average volume of 19,627 shares in the past one quarter.

The stock hit a high of Rs 1,432.05 and a low of Rs 1,412 so far during the day. The stock hit a record high of Rs 1,780 on 7 January 2014. The stock hit a 52-week low of Rs 1,106.80 on 5 August 2013.

The stock had underperformed the market over the past one month till 26 March 2014, falling 3.27% compared with the Sensex's 5.28% rise. The scrip had also underperformed the market in past one quarter, falling 9.13% as against Sensex's 4.84% rise.

The mid-cap company has an equity capital of Rs 30.30 crore. Face value per share is Rs 10.

CMC said that Kuwait Stock Exchange (KSE) had terminated the contract with CMC in September 2006, against which CMC filed a legal case in the courts of Kuwait.

The Cassation Court of Kuwait, which is the highest judicial authority in Kuwait, delivered the judgment in favor of CMC and has ordered KSE to pay CMC a sum of KD 2.17 million (equivalent to approximately Rs 46.37 crore at current exchange rate) along with interest at 7% per annum from the original date of order from the lower court. CMC is a subsidiary of IT major TCS.

On a consolidated basis, CMC's net profit rose 4.79% to Rs 70.54 crore on 0.03% rise in net sales to Rs 560.93 crore in Q3 December 2013 over Q2 September 2013.

CMC is a pioneer Information Technology solutions provider in India and is a subsidiary of TCS. Operating out of 18 offices and 180 service locations in the country, CMC employs over 10,000 people and has a wholly-owned subsidiary in USA called CMC Americas, Inc.

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