CMC Net Profit Grows 24% q-o-q in FY 10 (Q2)

Highlights

• Consolidated Operating Margin expansion of 320 basis points q-o-q.

• Consolidated Net profit margin expansion by 250 basis points q-o-q

• American Subsidiary business grows by 13% q-o-q in Dollar terms

• Cash and Cash equivalent of Rs. 194 crore.

Mumbai, October 15, 2009: CMC Limited announced consolidated operating revenues of Rs. 218.96 crore and Profit after Tax of Rs. 34.65 crore for quarter ended 30th September, 2009. Operating revenues for the corresponding period previous year was Rs. 206.98 crore and the consolidated profit after tax was Rs. 27.10 crore. The Operating Profit (EBITDA) increased by 27% q-o-q and 51% y-o-y to Rs. 39.27 crore. Operating margins increased by 320 basis points q-o-q and 490 basis points y-o-y.

“Our strategy of focusing on improvement in quality of revenue through increase in value added services, international business and operating efficiency is paying off in the form of substantial expansion in margins” said R Ramanan, CEO and MD. Value added services contributed 85% of the total consolidated operating revenue in Q2. “American Geography contributed significantly with 13% q-o-q growth in Dollar terms to increase the share of international business to 48% in Q2”, added Mr. Ramanan.

“The Company continues to strongly focus on cash flows. The Company increased balance of cash and cash equivalent to Rs. 194 crore at the end of the Q2, and earned Rs. 3.36 crore as dividend from investment of surplus funds during the quarter.”, said J K Gupta, Chief Financial Officer.

For the half year ended 30th September, 2009, the company earned consolidated operating revenue of Rs. 429.44 crore. The Company earned operating profit (EBITDA) of Rs. 70.21 crore an increase of 31% over last year, resulting in expansion of operating margin by 540 basis points. The net profit of the company during the same period is Rs. 62.67 crore, an increase of 24% over last year, resulting in expansion of net margin by 410 basis points.

About CMC :

Incorporated in 1975, CMC is a pioneer Information Technology solutions providers in India and is a subsidiary of Tata Consultancy Services Limited, Asia’s largest software Company. CMC had a consolidated revenue of Rs. 968 crore for 2008-09. Operating out of 18 offices and 180 service locations in the country, CMC employs around 5400 people and has a wholly owned subsidiary in USA called CMC Americas, Inc. CMC’s vision is to operate globally and bring the benefit of Information Technology to improve the productivity of its customers and the quality of its customer’s products and services. CMC combines horizontal expertise in Information Technology with its vertical experience developed by working in a wide range of Industries.