CMC provided some glee for the market by coming out with an impressive sequential growth besides a sterling y-o-y performance.
The scrip of the Tata group hardware maintenance and software services company leaped up 7.40% to Rs 519 on BSE by 12:33 IST on Friday. It registered volumes of 77,480 shares on BSE by then.
After market hours on Thursday, CMC said third quarter ended 31 December 2002 net profit surged 44.7% to Rs 10.13 crore compared to Rs 7 crore in the corresponding period of the previous year. Total income jumped 15.2% to Rs 140.43 crore (Rs 1.4 billion) from Rs 121.88 crore (Rs 1.21 billion) in DQ 2001.
The company registered impressive quarter-on-quarter growth as well - a 57% rise in net profit from Rs 6.46 crore on a 3.1% increase in total income from Rs 136.19 crore (Rs 1.36 billion).
In latest developments, on 29 January 2003, the Tata group company bagged a multi-crore total branch automation order from Central Bank of India. The TAB order covers the automation of 300 branches across 36 cities and involves the installation of a range of IT equipment including state-of-the-art personal computers, servers and printers in each of the branches.
CMC is a leading information technology solutions and computer hardware and software maintenance company involved in the design, development and implementation of software technologies and applications. It also provides professional services for export and procurement, installation, commissioning, warranty and maintenance of imported and indigenous computer systems, education and training and networking services.
For these activities, the company has five different strategic business units. Besides, the company has a wholly-owned subsidiary, Baton Rouge International, in the US.
Earlier, CMC stated that it expects profits to double in FY 2002-03 on the back of the new projects garnered. CMC expects margins to rise 20% and sales to grow 25-30% in FY 2002-03. Since January 2002, CMC is reported to have won five contracts - including one in partnership with TCS that is valued at $32 million. The orders are expected to boost its performance in FY 2002-03. The Tata group acquired CMC in October 2001. The Tatas hold 51% stake in CMC.