CMC LIMITED
RESULTS FOR Q2 FY 2013
SEP, 2012
Highlights
Ø Operating revenue at Rs. 458.25 crore - growth of 28%
y-o-y.
Ø EBITDA at Rs. 76.20 crore – Growth of 45% y-o-y.
Ø Broad based growth in India and international markets;
Ø International business share at 66.4% during Q2.
Ø Growth driven by value added services with growth of
37% y-o-y;
Ø Services Business share at 94.8% in Q2.
Ø 15 new clients addition during the quarter.
Ø 38% growth in operating revenue during half year ended
September, 2012.
CMC Limited announced consolidated Operating revenue of Rs. 458.25 crore in quarter ending September
30, 2012, which represents 28% growth over the corresponding period last year.
The company earned profit after tax of Rs. 49.40 crore, representing growth of
51% year-on-year.
On a cumulative basis the Company earned operating
revenue of Rs. 910.53 crore in the first half of current financial year,
resulting in growth of 38% over corresponding period last year.
“The Company continues to see good growth potential for
its offerings across all business segments and geographies even in a
challenging business environment” observed R Ramanan, CEO and MD. “The Company
added 15 clients across Geographies” he added.
“The Company was able to improve EBITDA margin by 190
basis points year-on-year though improved business mix and higher people
productivity” said JK Gupta, CFO. “The Company improved its debtor days from 86
days to 83 days during the quarter” he
added.
Awards &
Certifications:
Ø Golden Peacock Award for HR excellence by the
Institute of Directors.
Ø Golden Peacock Award for Innovation Management by the
Institute of Directors.
Ø MP Treasury CSFMS ePayment has won Gold for ePayment
facility for MP Government at SKOCH
Digital Inclusion Awards – 2012.
OTHER
DETAILS
The results of operation of the company for Q2 show consolidated
operating revenue of 458.25 crore which is an increase of 28% YoY and 1% QoQ.
Services revenue grew almost 6% on a QoQ and 37% on a YoY basis to Rs. 434.42 crore.
Share of services revenue in total revenue from sales and services was 94.8%
compared to 91% in the last quarter and
88.6% in Q2 of last year.
Equipment revenue declined almost 42% QoQ this quarter. International
revenue grew 44% YoY and 4% QoQ to Rs.
304.13 crores and the share of international revenue in total revenue from sales and services
improved further to 66.4% from 64.9% in
the last quarter and 59.1% in Q2 of last year.
CMC America
continues to deliver significant growth. They grew almost 25% YoY and 5% QoQ in
dollar terms in this quarter.
Company earned a consolidated EBITDA of Rs. 76.20 crores
which is an increase of 45% YoY and 1% QoQ. Company was able to maintain its
EBITDA margin at 16.6% at a the same level as we had last quarter, but still an
increase from 14.7% earned in Q2 of last year.
In current quarter, Company has absorbed the impact of
annual salary revision which is normally effective in the Company from first
July. The impact of that is Rs. 2.83 crores. It also absorbed an exchange loss
impact of Rs. 1.64 crores in this quarter which is due to quarter end appreciation of rupee. If we take these
two impact out, EBITDA margin in this quarter has been 17.6%, which means about 100 basis Point
expansion in the EBITDA margin quarter-on-quarter.
The company earned consolidated profit after tax of Rs.
49.40 crores which is an increase of 51% YoY but a decline of 15% QoQ. PAT margin in this quarter has got
affected because of Rs. 4.48 crores of tax on dividend distributed by CMC
America which is the American subsidiary in this quarter. This quarter they
distributed dividend of 5 million dollar. If we exclude this onetime tax
adjustment on account of dividend distribution by CMC America, the PAT for the
quarter is 53.88 crores, which gives a
PAT margin of 11.72% compared to 9% in
the corresponding period last year. Average effective tax rate excluding impact
of one time dividend tax is 25.3% compared to 22.6% in the previous quarter. In
the previous quarter, Company had higher income on investment in mutual funds
because of maturity of certain FMPs which attracts concessional tax
treatment.
Other income in this
quarter is Rs. 1.53 crores compared to Rs.
5.7 crores in Q1. This lower other income is primarily on account of FMP
maturity in last quarter. The total implication of this is about 3.7 crores.
In the current quarter Company added 15 new clients. It
ended the quarter with manpower strength of 10,751 which is an addition of 37
during the quarter. In this quarter ther focus has primarily been on improved utilization
of people which gave productivity
improvement of 4% as compared to the previous quarter.
Company ended the quarter with cash and cash equivalent
of Rs. 179 crores which is after dividend payout of Rs. 44 crores and capital
expenditure of Rs. 26 crores during the quarter. Company had an investment of
117 crores in debt based mutual funds.
Company was able to reduce or debtor days from 86 days
to 83 days during the quarter.
RESULTS
TABLE
|
CMC
|
Q2FY13
|
%DIF QoQ
|
Q1 FY13
|
%DIF YoY
|
Q2 FY12
|
|
(a) Net sales
|
45825.66
|
1.32
|
45227.85
|
28.31
|
35716.18
|
|
(b) Other operating
income
|
38.49
|
6423.73
|
0.59
|
-27.54
|
53.12
|
|
Total income
|
45864.15
|
1.41
|
45228.44
|
28.22
|
35769.3
|
|
(a) Cost of materials
consumed
|
-
|
|
-
|
|
4452.82
|
|
(b) Purchases of
stock-in-trade
|
1940.35
|
-47.73
|
3712.18
|
|
-
|
|
(c) Changes in
inventories of FG, SIT, WIP
|
-79.11
|
-285.36
|
42.68
|
|
|
|
(d) Employee benefits
expense
|
13097.82
|
1.68
|
12881.55
|
21.11
|
10815.05
|
|
(e) Depreciation
|
558.81
|
3.21
|
541.45
|
3.35
|
540.71
|
|
Other expense
|
23245.85
|
10.34
|
21067.94
|
53.11
|
15182.14
|
|
Total expenses
|
38763.72
|
1.35
|
38245.8
|
25.08
|
30990.72
|
|
Profit from operations
|
7100.43
|
1.69
|
6982.64
|
48.59
|
4778.58
|
|
Other income
|
113.59
|
-80.08
|
570.2
|
-76.97
|
493.33
|
|
Profit before finance costs
|
7214.02
|
-4.49
|
7552.84
|
36.84
|
5271.91
|
|
Finance costs
|
0.05
|
-97.7
|
2.17
|
-86.49
|
0.37
|
|
Profit after finance costs
|
7213.97
|
-4.46
|
7550.67
|
36.85
|
5271.54
|
|
Profit before tax
|
7213.97
|
-4.46
|
7550.67
|
36.85
|
5271.54
|
|
Tax expense
|
2274.03
|
33.17
|
1707.6
|
13.2
|
2008.92
|
|
Net Profit
|
4939.94
|
-15.46
|
5843.07
|
51.41
|
3262.62
|
|
Consolidated Net
Profit
|
4939.94
|
-15.46
|
5843.07
|
51.41
|
3262.62
|
|
Face Value (in Rs.)
|
10
|
0
|
10
|
0
|
10
|
|
Paid-up equity
|
3030
|
0
|
3030
|
0
|
3030
|
|
EPS-Basic
|
16.3
|
-15.46
|
19.28
|
51.35
|
10.77
|
|
Public shareholding%
|
48.88
|
0
|
48.88
|
0
|
48.88
|
Highlights
of cumulative performance for the HYE September 12 :-
Company experienced an operating revenue growth of 38%
to Rs. 911 crores. Services revenue grew
44% to Rs. 846 crores.
International business grew at a higher pace of 54% to
Rs. 598 crores.
EBITDA grew 47% to Rs. 151 crores resulting into an
EBITDA margin expansion of 110 basis points to 16.63% compared to 15.53% last
year.
The profit after tax
grew 60% to Rs. 107.83 crores, giving an expansion in PAT margin of 160 basis points
to 11.7% compared to 10.1% in H1 of last year. Company was able to reduce
effective tax rate to 27% compared to 34% last year and if we exclude the
implication of tax on dividend
distribution by CMC America, the effective tax rate this year has been 24%
compared to 30% in the first half of last year.
About CMC Limited
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 over 10,000 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.
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