The net profit of the company is likely to go up to Rs 1.2 crore as against Rs 89 lakh in the same period last fiscal.

A large portion of this growth is believed to have come from value added services. The company had gained Rs 36 crore in the first quarter last fiscal. As per the unaudited results available with the company, this figure is expected to cross Rs 45 crore in the quarter ended June 1999 since the business has grown multi-fold.

CMC's activities broadly span across three clearly identified areas of services, system integration and education and training, which have been categorised under five SBUs.

Of these, the customer services' SBU turnover is likely to register 100 per cent growth and cross Rs 42 crore. The divisionhad logged in a Rs 21.12 crore revenue in Q1 1998-99.

The education and training division has grown by about 1.5 times and is expected to touch Rs 7 crore as against Rs 5.70 last year's Q1. The international business of CMC is likely to cross Rs 16 crore as against Rs 12.98 crore.

The other two SBUs are not believed to have done as well and the revenue growth from these divisions is likely to be neutral. While Indonet had clocked Rs 1.42 crore, systems integration business had registered about Rs 8 crore in the Q1 last year. The stagnation in system integration business is in spite of the reasonable growth in volumes and, going by the trends in the computer hardware industry, is likely to continue.

The results are still in the process of being compiled and audited after which the company's board of directors will seek the government's approval and announce the final figures before the month end, a senior government official told The Financial Express.

CMC had clocked a 35 per cent growth during thefirst quarter of 1998-99 over the similar period of 1997-98. It has set up a turnover target of Rs 450 crore as against Rs 338 crore during the last fiscal.

Last year, sales of the company went up by 17.5 per cent and net profit by 30 per cent. The company managed to improve its profit to equity ratio which stands at 1.14 as compared to 1.27 in 1997-98. Average collection period has come down from 105 days to 95 days, but still remains substantial.