CMC Ltd

This subsidiary of TCS has posted a good set of numbers for Q3FY14. The company posted a consolidated net profit at Rs.70 crore, up 16% (YoY) but QoQ, growth was flatter, with profit rising 5%. This was on a 14% rise in net revenue at Rs.561 crore. Given the fact that Q3 is usually the lean period for IT companies, this is a credible performance. The company added 14 new clients during the quarter and that, plus the fall in tax outgo from Rs19 crore in Q3FY13 to Rs.17 crore in current Q3 helped shore up the margins.

Its main bread winner remains systems integration, though it contracted QoQ, and ditto for IT enabled services. Customer services did very well and so did education and training.SEZ income was flat. The company, for 9MFY14, posted a consolidated net profit at Rs.191 crore compared to Rs.230 crore for FY13. With one more quarter to go, with Q4 expected to be much better, the company is likely to end FY14 on a higher note.