Financial Daily from THE HINDU group of publications
Friday, Aug 30, 2002
Financial Daily from THE HINDU group of publications Friday, Aug 30, 2002 |
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Info-Tech
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Outlook CMC banks on TCS link to get global orders Our Bureau
HYDERABAD, Aug. 29 FOLLOWING its acquisition by Tatas, CMC Ltd, a pioneer in providing IT services in the domestic market, is exploiting the fresh opportunities that are being created by the Central and State Governments to reach the benefits of information technology to the common man.
Addressing the 26th annual general meeting of the company at its Gachi Bowli campus here, the Chairman, Mr S. Ramdorai, said the process of integration with the software services major Tata Consultancy Services (TCS) is under way. Mr Ramadorai said the industry in recent times has witnessed increasing global competition and pressure on margins. However, the Indian IT industry is still seen as the preferred source for software services, on account of the advanced quality and built-up delivery capability. Significant investments are being made by governments to create the much-needed infrastructure in the country. CMC is well placed to tap such opportunity with its service offerings, domain expertise and large number of IT solutions packages, he said. A challenging year notwithstanding, CMC has achieved sustained growth, recording revenues of Rs 565.33 crore and the net profit improved significantly to Rs 33.64 crore, an increase of 34 per cent over previous year. The EPS improved from Rs 16.56 to Rs 22.20. The market capitalisation of shares more than doubled from Rs. 356 crore to Rs 809 crore, resulting in higher value to the shareholders. In view of the encouraging results, CMC board recommended a dividend of Rs 4 per share. CMC is working closely with TCS to increase its international business through composite responses to tenders wherein their complementary strengths would be combined to provide complete turnkey solutions to customers. As a result of this co-operation, a major order of Rs 84 crore for outsourcing IT services for the state of North Carolina has been recently won by BRI (Baton Rouge International), the wholly-owned subsidiary of CMC in the US.
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