CMC surges as Q3 net up 27% q-o-q

CMC has rallied 7% to Rs 982 after reporting 27% quarter-on-quarter (q-o-q) growth in its consolidated net profit at Rs 41.37 for the third quarter ended December 2011. Revenue was up 8% at Rs 396 crore on q-o-q basis.

However, on year-on-year basis, the company has reported 9% drop in net profit from Rs 45.37 crore in December 2010 quarter. Consolidated revenues in the quarter though were up 45% from Rs 273 crore, the Tata Group company said in a filing to the stock exchanges after market hours Friday.

“Though sequentially our profits grew (27%), the drop y-o-y has been because of STP tax benefit going off this year. Our SEZ business at Hyderabad is taking time to stabilise and transition will take two years," said J K Gupta, CFO, CMC.

During the quarter, CMC added 1,474 employees and reported lower attrition rate of 18.7%.

A combined 68,558 shares have already changed hands on the counter in early morning deals, against an average less than 50,000 shares that were traded daily in past two weeks on the NSE and BSE.