April 18, 2011

CMC revenue grows 24 per cent; net profit growth of 25 per cent in FY2010-11, proposes 1:1 bonus share

Highlights
  • Consolidated revenue growth of 24 per cent
  • Consolidated profit growth of 25 per cent
  • Consolidated operating margin expansion of 57 basis points
  • Strong growth in international business; American subsidiary business grows by 47 per cent in Dollar terms
  • Cash and cash equivalent of Rs283 crore
  • Proposes 1:1 bonus share
  • Recommends dividend of Rs20 per share
New Delhi: The board of directors of CMC has proposed bonus share in the ratio of one share for every one share held.
 
The company announced dividend of Rs20 per share.
 
The company announced an operating revenue of Rs1,080.53 crore for the year ended March 31, 2011, an increase of 24 per cent over 2009-10. The company earned operating profit (Ebitda) of Rs206.84 crore, an increase of 28 per cent over 2009-10.  Operating margins increased by 57 basis points over the previous year. The company’s profit after tax grew by 25 per cent from Rs143.23 crore to Rs179.41 crore.
 
In this year of growth, the company added 80 clients. The company also added 1,845 associates, taking its employee count to 7,396 as on March 31, 2011.
 
“We are very happy with the growth momentum, with all the SBUs performing better in both domestic and international markets. The company’s first state-of-the-art SEZ unit at Hyderabad will become operational in April 2011, enhancing its capability to service international clients”, said R Ramanan, chief executive officer and managing director, CMC.
 
“The company expanded its operating margins driven by the improvement in the business mix and cost management. The share of services business increased from 88.2 per cent to 90.5 per cent during the year. The company increased cash and cash equivalent to Rs283 crore at the end of the year, after funding capital expenditure of Rs100 crore from internal resources”, said JK Gupta, chief financial officer, CMC.
 
For the quarter ended March 2011, the company earned consolidated operating revenue of Rs292.69 crore, an increase of 7 per cent q-o-q and 27 per cent y-o-y. The operating profit (Ebitda) and profit after tax (PAT) on a consolidated basis were Rs50.72 crore and Rs43.97 crore respectively, during the quarter ended March 2011.