CMC Ltd

This subsidiary of TCS, for Q3FY15 posted a very flat performance. It posted a meagre 2% (YoY) rise in its consolidated net profit at Rs.72 crore but down 5% on a sequential basis. Revenue was up 14% (YoY) and a flat 3.5% (QoQ) at Rs.638 crore. Naturally, the market is not at all enthused with these numbers which is why the stock closed in the negative yesterday.

In terms of segmental break-up, revenue from systems integration continued to contribute the most to the topline at Rs.439 crore, while that from customer services was at Rs.93 crore and IT-enabled services stood at Rs.77 crore. Its Education vertical garnered Rs.12 crore and SEZs accounted Rs.17 crore. Sequentially, apart from IT-enabled services, all the other verticals showed a decline in revenue as well as EBIT. It ended 9MFY15 with a consolidated net profit at Rs.206 crore v/s Rs.280 crore for FY14; looks like it would end current fiscal on a marginally better note.

On 16 October, the board of TCS approved the merger of CMC with itself, effective 1 April 2015