Business Daily from THE HINDU group of publications
Tuesday, Jan 15, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Tuesday, Jan 15, 2008 ePaper | Mobile/PDA Version |
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Markets
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Stocks Info-Tech - Software Corporate Results - Financial Performance
BL Research Bureau CMC has announced a modest set of numbers for the latest quarter. While revenues grew 7.1 per cent to Rs 294.60 crore, net profits saw a dip of 4.8 per cent to Rs 21.90 crore for the December quarter, both on a sequential basis. System Integration recording a flat quarter may explain the lower profitability as does education services revenues’ coming down by 23 per cent on a sequential basis. These may a seasonal blip or because some projects may have been one-time engagements. Even the ITES business has witnessed an 8.8 per cent decline in revenues. However, the hardware service-oriented customer services vertical has grown reasonably. CMC’s customer services and system integration strategic business unitshandle IT solutions and manage turnkey projects by providing services across the entire gamut of IT infrastructure components. These activities are also the highest revenue contributors. CMC also has an ITES division, which handles back-office processes, call-centre services and an education and training division, which provides IT education services to college graduates and corporate professionals. System integration and Educational training are its relatively higher margin offerings. The stock fell over 6 per cent on Monday, after running up sharply in the home stretch to its results. But with an increasing contribution from system integration projects, opportunities from Government spend in IT infrastructure and synergies with TCS, CMC is still well placed for revenue/margin expansion. More Stories on : Stocks | Software | Financial Performance
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