The Hindu Business Line : 45 pc rise in CMC Q1 net

Mumbai, July 13 CMC Ltd has reported a 45 per cent rise in consolidated net profit for the first quarter ended June 2007 to Rs 23.41 crore as against Rs 16.15 crore recorded in the corresponding year ago quarter. Revenues, however, were down by 4.4 per cent to Rs 240.75 crore (Rs 252.05 crore).

The decline in total revenues can be attributed to the decline in revenues from the customer services business , said Mr J.K. Gupta, Chief Financial Officer. “We have taken a conscious effort to shift focus from low margins businesses of the customer services division like the equipment business to focus on our services and international business. Going forward, this will have a positive impact on our bottomline,” Mr Gupta told Business Line.

An increase of 65.4 per cent was seen in the revenue from the company’s education and training segment at Rs 10.52 crore (Rs 6.36 crore). A growth of more than 5 per cent was also seen in business from the ITES and systems integration business. CMC’s standalone net profit was up by 48 per cent for the June quarter to Rs 22.12 crore (Rs 14.95 crore); net revenues stood at Rs 216.89 crore (Rs 232.35 crore). The company stock hit an intra day low of Rs 1,285 before settling at Rs 1,298.9, down by 11.08 per cent from the previous close.

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