CMC Q1 Net up 10 per cent at Rs 58.42 cr

Tata Consultancy Services arm, CMC today reported about a 10 per cent rise in consolidated net profit at Rs 58.42 crore for the June quarter on the back of broad-based growth across India and overseas markets.
The consolidated net profit stood at Rs 53.12 crore in the corresponding quarter last year.
"CMC saw broad-based growth in India and international markets, where international business grew 28 per cent year-on-year. CMC added 12 new clients added during the quarter," it said in a statement.
Income from operations grew 21.9 per cent to Rs 592.63 crore in the said quarter from Rs 486.03 crore in the April-June 2013 period.

"We continue to see robust growth in the international markets, across geographies. CMC's software solutions and offerings in embedded systems have found increased traction in Middle East and Africa and European markets," CMC Managing Director and Chief Executive R Ramanan said.
He added that the domestic market is expected to turn promising after the recent budget announcements and growth initiatives mentioned by the newly elected government.

However, on a sequential basis, the net profit dipped from Rs 89.43 crore, while income from operations was lower from Rs 623.21 crore in the January-March 2014 quarter.
The company has revised its estimated useful life of fixed assets, wherever appropriate effective April 1, 2014, in compliance with the Companies Act, 2013.

This has resulted in higher charge of depreciation by Rs 24.24 crore during the quarter ended June 30, 2014, it said.
CMC added 283 employees (net) during the said quarter, taking its headcount to over 11,000 people.
Revenues from its customer services business accounted for Rs 104.75 crore, while that from system integration and IT-enabled services stood at Rs 383.13 crore and Rs 76.22 crore, respectively.
Revenues from education and training business stood at Rs 11.06 crore, while that from Special Economic Zone was Rs 17.45 crore during the said quarter.
CMC's scrip closed at Rs 1,979.05 apiece, higher by 2.8 per cent from its previous close on the BSE.