CMC Q3 net profit by 2.2% to Rs 72.11 cr

IT firm CMC today reported 2.2 per cent increase in consolidated net profit to Rs 72.11 crore in the third quarter ended December 31, 2014.
The Tata group company had posted a net profit of Rs 70.54 crore in the same quarter of last fiscal.
Consolidated income from operations climbed 13.7 per cent to Rs 638.12 crore during the quarter, from Rs 560.92 crore in the same quarter of 2013-14.
Revenues from the customer services vertical stood at Rs 92.63 crore, while that from systems integration and IT- enabled services was at Rs 439.34 crore and Rs 76.77 crore, respectively.

Education business and SEZs accounted for Rs 12.52 crore and Rs 16.85 crore, respectively.
CMC shares rose 0.63 per cent to Rs 1,937.75 apiece at the close on the BSE.

In October, India's largest software exporter Tata Consultancy Services had approved the merger of CMC (its subsidiary) with itself, subject to regulatory and shareholder approvals.
TCS had said it is already doing 'significant' amount of work with CMC, while CMC on its part is doing a lot of work in the domestic market. The company believes that the combined firm would win "bigger deals".
Following the merger, TCS will consolidate CMC's operations in a single company with a rationalised structure, enhanced reach, greater financial strength and flexibility.

TCS held a 51.12 per cent stake in CMC, which is engaged in the design, development and implementation of software technologies.
CMC is also engaged in IT infrastructure, training services and embedded systems.
The appointed date for the merger is April 1, 2015.
CMC, formerly Computer Maintenance Corporation, began as a State-run IT services firm in 1975. TCS acquired the company in 2001, following which it was rechristened CMC. Later in 2004, CMC became a fully-privatised company.