Cmc

The company posted an operating profit of Rs 14.11 crore in 1996-97 as against an operating loss of Rs 3.68 crore in 1995-96.

However, in 1995-96, its net profit was at Rs 12.65 crore due to a one-time other income of Rs 24.79 crore.

However, discounting this figure, CMCs other income for 1996-97 declined by 18.62 per cent to Rs 4.01 crore.

But despite this, the income seems to be on the higher side, contributing 68.69 per cent to the profit before tax (PBT)

However, CMCs second-half performance was quite good with a lower other income of Rs 1.12 crore, while the net profit in the same period contributed around 96 per cent to the full years figure of Rs 3.85 crore. Sales of the company have gone up by 28.6 per cent to Rs 224.18 crore.

This is attributed to the company's focus on offshore projects and increasing the number of franchises for CMCs training division.

Interest burden of the company rose marginally by 10.1 per cent to Rs 5.40 crore. However, depreciation was on the same level at Rs 6.57 crore compared with Rs 6.48 crore last year.

The company, which did not make any tax provision in the first half, had a liability of Rs 2.30 crore for the second half.

The stock of CMC, which was listed on the bourses in January this year at Rs 10, witnessed heavy buying on hopes of improved performance. However, after the Bombay Stock Exchange (BSE) implemented a buying margin, its upturned stopped around Rs 65. The current price of Rs 49 discounts the earnings around 20 times.