CMC Ltd

Apart from the overall lackluster operational performance, the exceptional expense of Rs.19 crore further aggravated the numbers, consequently, the company ended Q1FY15 with a consolidated net profit at Rs.58 crore, down 35% (QoQ). Its topline also showed a 5% decline at Rs.593 crore. The exceptional expense was on account of depreciation charge of Rs.24.23 crore less deferred tax credit of Rs.6.4 crore. Prior to this exceptional expense, PBT was at Rs.83 crore, down 38%.

Its operating costs also rose – up 3% but as a percentage of revenue, it rose from 80% in Q4 to 87% in current Q1. Employee costs have come down but sub-contracting and outsourcing charges have increased. There was a 50% drop in other income.

In terms of segments, customer service, systems integration, IT enabled services, education and traning, – all showed a lower growth in revenue as well as EBIT, with education showing a loss. The only segment to do well was SEZ, which posted a 21% rise in revenue and 10% growth in EBIT but its overall contribution to the total revenue is less than 3%.

During the quarter, the company added 12 new clients and added 282 employees.