CMC Ltd

The company posted a disappointing Q1FY16. Its consolidated net profit for the quarter was at Rs.56 crore, down 21% (QoQ) and this was on a net income of Rs.672 crore, up less than 1%. EBITDA for the quarter was at Rs.92 crore, down 4% while margins too fell – from 14.4% to 13.7% (QoQ). Apart from the overall drop in performance, the higher tax outgo of Rs.30 crore v/s Rs.18 crore in Q4 too led to the sharp decline in net profit.

In terms of segmental break-up, revenue from systems integration continued to contribute the most to the topline at Rs.449 crore, while that from customer services was at Rs.122 crore and IT-enabled services stood at Rs.71 crore. Its Education vertical garnered Rs.12 crore and SEZs accounted Rs.17 crore. Sequentially, IT-enabled services and SEZ verticals showed a decline in topline while Education posted a loss at EBIT levels.

On 16 October’15, the board of TCS had approved the merger of CMC with itself, effective 1 April 2015.