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CMC Q4 Profit Declines

CMC Ltd., a TCS subsidiary and a provider of information technology solutions in India, reported a lower net profit for the fourth quarter, both on consolidated and stand-alone basis, but an increase in income.

Consolidated Results

The Hyderabad-based company posted fourth-quarter consolidated net profit of Rs.42.93 crore or Rs.14.17 per share, two percent lower than the Rs.43.97 crore or Rs.14.51 per share reported in the fourth-quarter of 2011.

Quarterly net income rose by 40 percent to Rs.408.92 crore from the Rs.292.69 crore in the corresponding quarter last year, while other operating income was Rs.0.98 crore, compared with the Rs.1.41 crore for the same period last year.

For the quarter, income from the 'Customer Services' segment totaled Rs.82.90 crore, while that from 'Systems Integration' was Rs.236.52 crore. Income for the quarter from the 'IT-enabled Services' segment amounted to Rs.69.01 crore, whereas 'Education & Training' revenue was Rs.14.85 crore. Income from the 'Other Unallocable' segment was Rs.6.67 crore.

For the 12 months, CMC posted a consolidated net profit of Rs.151.81 crore, down by 15 percent from the Rs.179.41 crore for the comparable period a year ago. The total income, including other operating income, was Rs.1,469.34 crore, up by 35 percent from the Rs.1,084.44 crore for the twelve-month period ended March 31 last year.

Stand-alone Results

CMC's fourth-quarter stand-alone net profit was Rs. 33.33 crore or Rs.11.00 per share, down by 13 percent from the Rs.38.53 crore or Rs.12.72 per share during the first three months of the preceding year. Total income, including other operating income, rose by 20 percent to Rs.258.10 crore from the Rs.215.22 crore in the previous-year quarter.

For the 12-month period, the company's stand-alone net profit down by eight percent to Rs.143.33 crore from the Rs.155.73 crore for the comparable period in the preceding year. Total revenue, including other operating income, increased by 20 percent to Rs. 955.34 crore from the Rs.798.08 crore for the twelve-month period ended March 31 of last year.

The company said its board recommended a dividend of 125 percent or Rs.12.50 per equity share of Rs.10 each for the fiscal year 2012.

The company said it was in the process of enhancing its capacities at SEZs at Hyderabad and Kolkata, to cater to the growth in International business.

During the year, it added 74 clients and also added 3,379 employees, taking its total manpower strength to 10,775 as on March 31, 2012.

Company Chief Executive Officer and Managing Director R. Ramanan said, "The company has accelerated its growth momentum during the year in difficult business environment in both domestic and international markets. The company continues to focus on value adding solutions and services in line with its stated business strategies."

He added, "The company has seen early success in its efforts to penetrate in new geographies, particularly Middle East and Africa."

At the BSE, CMC closed Wednesday's trading at Rs.997.45, up 1.26 percent from the previous close.

by RTTNews Staff Writer

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