CMC Fisc 04 Profit Up 30% At Rs 48 Cr

New Delhi | Updated: Apr 27 2004, 05:30am hrs
CMC Ltd, an erstwhile government company acquired by Tatas, has posted a 24 per cent increase in its total revenues to Rs 763.67 crore in the fiscal ended March 31, 2004 as compared to Rs 614.73 crore of the previous year. The company earned profit after tax of Rs 47.99 crore recording an increase of 30 per cent over the previous year.

The consolidated revenue of the company along with its wholly owned subsidiary, CMC Americas, Inc for the year 2003-04 was Rs 801.75 crore, recording an increase of 18 per cent over Rs 679.09 crore achieved in the previous year. The consolidated profit after tax increased by 23 per cent to Rs 44.77 crore.

The board of directors has proposed a dividend of Rs 5.50 per share, an increase from Rs 4.00 per share paid past year.

The revenue growth during the year has been mainly driven by customer services SBU in the domestic market and systems integration SBU solutions in the international market, said CMC chief financial officer JK Gupta. He further added that 19 per cent growth in international service revenue helped bringing down effective tax rate for the year from 34.6 per cent to 27.0 per cent.

Commenting on CMCs performance during the current year, CMC managing director and CEO R Ramanan said, The company continues to focus on its core competencies which revolve around implementing complex systems integration solutions, hi-tech embedded systems design and development, end-to-end IT infrastructure management and the emerging areas of IT enabled services, knowledge management services such as e-learning and corporate training.