CMC’s fourth quarter profit increases 45.8% to Rs89.43 crore

CMC’s income from operations surges 19.1% to Rs.623.21 crore during the fourth quarter of 2013-14 from Rs522.87 crore last year 

 

CMC’s revenue during fourth quarter of 2013-14 rose 15.8% to Rs2,230.92 crore. Photo: Pradeep Gaur/Mint

New Delhi: IT solutions provider CMC on Monday posted a 45.8% increase in consolidated net profit to Rs.89.43 crore for the quarter ended 31 March on account of a one-time benefit from a favourable decision in a legal case.

The Tata group firm had reported a profit of Rs.61.33 crore in the same period a year earlier.

“The quarter was a good one for us. We had received a favourable decision in a legal case with a customer during Q4 2013-14, which resulted in increase in revenue by Rs.19 crore and Rs.25 crore in PAT,” CMC chief executive officer and managing director R. Ramanan told PTI.

This was after an additional tax burden of Rs.10.37 crore on account of dividend distribution by CMC Americas to CMC, he added.

CMC’s income from operations rose 19.1% to Rs.623.21 crore during the fourth quarter of 2013-14 from Rs.522.87 crore in the same period last year.

The unit of Tata Consultancy Services (TCS) has earmarked capital expenditure of Rs.160 crore for this financial year. “This will be primarily invested in setting up a new facility in Salt Lake City in Kolkata. It will be ready in the next 12-15 months and help us consolidate our offices in the city,” Ramanan said.

For the financial year ended 31 March, CMC posted a consolidated net profit of Rs.280.41 crore, up 21.7% from Rs.230.23 crore in the previous financial year.

Revenue rose 15.8% to Rs.2,230.92 crore. Cash and cash equivalents stood at Rs.329 crore as of 31 March.

“We continue to see good traction and client addition across geographies. Our solutions have found increased acceptance in new geographies, particularly Middle East, Africa and APAC,” Ramanan said.

Revenue from customer services during the fourth quarter stood at Rs.119.82 crore, systems integration Rs.398.39 crore, IT-enabled services Rs.77.44 crore and education and training Rs.13.77 crore. “Other than educational training, the other verticals have grown well. We added 15 new clients in Q4, of which 12 were in India. We continue to see good demand for our asset-based solution in the Middle East, Africa and APAC regions,” he said.

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SOURCE-- MINT LIVE NEWS