Analyst Meet / AGM - Analyst Meet
To be merged with TCS
CMC announced the results for the quarter ended September 2014 and held a conference call to discuss the results and future growth strategies. The key takeaways of the call are as follows.
Highlights of the call:
The Revenues grew by 10% YoY to Rs 616.69 crore for the quarter ended September 2014. The EBIDTA grew by 18% YoY to Rs 104 crore for the same period. Also, PAT grew by 13% YoY to Rs 76 crore.
Its revenue benefitted from rupee depreciation during the quarter. The EBIDTA margins had wage hike impact of 89 bps despite 26 bps positive impact from Rupee depreciation for the same period.
The Services revenues (92.5% of total) grew by 9% YoY to Rs 570.38 crore for the quarter ended September 2014.
There is broad based growth in India and International markets during the quarter. The Revenues from Domestic business grew by 9% YoY; and International business grew by 10% YoY for the same period.
The international business (69.5% of sales) grew by 7% QoQ to 428.4 crore during the quarter. Further, America (61% of total) grew by 6% QoQ (14% YoY) in dollar terms during the quarter for the same period.
It added 17 new clients (4 America, 1 Europe, 2 MEA, and 10 or 11 in India) during the quarter taking the total client addition to 29 during the year.
The revenue kicks in later part for the domestic clients added during the quarter.
It has net addition of 193 employees for the quarter ended September 2014.
The TCS holds 51.12% stake in the CMC.
The Company amalgamates with TCS, as per the terms of the Amalgamation (Scheme), Shareholders of CMC will receive 79 equity share of Rs 1 each of TCS for 100 equity shares of Rs 10 each of CMC. The Scheme is subject to, court, regulatory, shareholders and other necessary approvals.
The merger will help the growth of CMC and will enhance the international exposure for the various services and solutions. It enables them to get the newer clients going forward.
The Digital India initiative by Modi Government will provide great opportunities for the CMC and TCS as well.
The Capex is Rs 16 crore during the quarter.
The Cash and Cash equivalents is Rs 248 crore as on 30th September 2014.
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