CMC LTD
Highlights –FY 2011 RESULTS
Ø Consolidated revenue growth of 24%
Ø Consolidated Profit growth of 25%
Ø Consolidated Operating Margin expansion of 57 basis points.
Ø Strong growth in international business; American Subsidiary business grows by 47% in Dollar terms
Ø Cash and Cash equivalent of Rs. 283 crore.
Ø Proposes 1:1 Bonus Share.
Ø Recommends Dividend of Rs. 20 per share.
v The Company announced an Operating Revenue of Rs. 1080.53 crore for the year ended 31st March, 2011, an increase of 24% over 2009-10.
v The Company earned Operating Profit (EBITDA) of Rs. 206.84 crore, an increase of 28% over 2009-10.
v Operating margins increased by 57 basis points over the previous year.
v The Company’s Profit after Tax grew by 25% from Rs. 143.23 crore to Rs. 179.41 crore.
v In this year of growth, the Company added 80 clients.
v The Company also added 1845 associates taking its employee count to 7396 as on 31st March, 2011.
v “We are very happy with the growth momentum, with all the SBUs performing better in both Domestic and International markets. The Company’s first state of art SEZ unit at Hyderabad will become operational in April, 2011 enhancing its capability to service international clients”, said R Ramanan, CEO and MD.
v “The Company expanded its operating margins driven by the improvement in the business mix and cost management. Share of Services business increased from 88.2% to 90.5% during the year. The Company increased cash and cash equivalent to Rs. 283 crore at the end of the year, after funding capital expenditure of Rs. 100 crore from internal resources”, said J K Gupta, Chief Financial Officer.
v For the quarter ended March 2011, the Company earned consolidated operating revenue of Rs. 292.69 crore, an increase of 7% q-o-q and 27% y-o-y.
v The operating profit (EBITDA) and Profit after Tax (PAT) on a consolidated basis were Rs. 50.72 crore and Rs. 43.97 crore respectively during QTR ended March, 2011.
About CMC
Incorporated in 1975, CMC is a pioneer Information Technology solutions provider in India and is a subsidiary of Tata Consultancy Services Limited, Asia’s largest software Company.
Operating out of 18 offices and 180 service locations in the country, CMC employs around 7400 people and has a wholly owned subsidiary in USA called CMC Americas, Inc.
RESULTS TABLE :
ANNUAL – CONSOLIDATED
| FY 11 | ||
| Net Sales | 108053.15 | 87072.73 |
| Other Operating Income | 387.28 | 544.2 |
| Raw Materials | 12139.01 | 12035.43 |
| Employees Cost | 34512.6 | 27615.76 |
| Depreciation | 1045.96 | 985.37 |
| Other Expenditure | 40718 | 31249.1 |
| Total Expenditure | 88415.57 | 71885.66 |
| Profit from Operations | 20024.86 | 15731.27 |
| Other Income | 1169.71 | 1330.9 |
| Interest | 11.8 | 316.87 |
| Profit before tax | 21182.77 | 16745.3 |
| Tax Expense | 3241.91 | 2422.65 |
| Net Profit | 17940.86 | 14322.65 |
| Face Value (in Rs.) | 10 | 10 |
| Paid-up Equity | 1515 | 1515 |
| Reserves | 63886.95 | 49552.57 |
| Basic EPS (in Rs.) | 118.42 | 94.54 |
| Public holding (%) | 48.88 | 48.88 |
On a consolidated basis – the performance of CMC continues to be very impressive.
The Market price of the share is Rs.2005 on a Face value of Rs.10.
The Basic EPS has been Rs.118,42 on consolidated basis.
The current PE Ratio is therefore :16.93, which is very modest, considering the growth track of CMC. In this one year of Growth, CMC, a subsidiary of TCS, says- it has added 80 clients, which is quite impressive.
Hopefully, this subsidiary’s record will be bettered by TCS in this “year of Growth”.
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