2. Disclaimer
This presentation has been prepared by CMC solely for providing information about the Company.
Certain statements in this presentation are forward looking statements, which involve a number of
risks, and uncertainties that could cause actual results to differ materially from those in such forward
looking statements. The risk and uncertainties relating to these statements include, but are not limited
to, risk and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense
competition in IT services including those factors, which may affect our cost advantage, wage
increases, our ability to attract and retain highly skilled professional, time and cost overruns on fixed
price contracts, our ability to manage our international operations, reduced demand of technology in
our key focus areas and our software products and solutions, withdrawal of Government fiscal
incentives, political instability, un-authorized use of our intellectual property and general economic
conditions affecting our industry. CMC, from time to time, make additional written or oral forward
looking statements, including our report to shareholders. The Company does not undertake to update
any forward looking statement that may have been made from time to time by or on behalf of the
Company. This communication is for general information purposes only, without regard to specific
objectives, financial situations and needs of any particular person. Please note that investments in
securities are subject to risks including loss of principal amount. The Company does not accept any
liability whatsoever, direct or indirect, that may arise from the use of the information herein.
2
4. Revenue – FY 2005-06 (Q4)
Operating Revenue
(Rs crore)
• Operating Revenue up 34% q-o-q and 300
278.0
26% y-o-y at Rs. 278 cr crore 250
220.3
compared with Rs. 207 crore in last 207.4
200
quarter and Rs. 220 crore in last year. 150
• Total Revenue up 32% q-o-q and 25% 100
y-o-y at Rs. 279 crore compared with 50
Rs. 212 crore in last quarter and Rs. FY 05 (Q4) FY 06 (Q4) FY 06 (Q3)
Total Revenue
223 crore in last year. (Rs crore)
300
279.1
• Other income lower at Rs. 1.1 crore 250
223.2
compared with Rs. 4.7 crore in last 211.9
200
quarter and Rs. 3.0 crore in last year.
150
100
50
* Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas FY 05 (Q4) FY 06 (Q4) FY 06 (Q3)
4
5. Profitability – FY 2005-06 (Q4)
Operating Profit PAT
PBT
(Rs crore)
(Rs crore) (Rs crore)
20 20 15
12.08
16.6
14.29 9.94
15 13.2
15 10
12.1
10
10 5
5
5 0
FY 05 (Q4) FY 06 (Q4) FY 06 (Q3)
0
0 FY 05 (Q4) FY 06 (Q4) FY 06 (Q3) -5
FY 05 (Q4) FY 06 (Q4) FY 06 (Q3) -5
-5
-10
-10
-10
-15
-15 -14.08
-16.52
-13.0
-15
-20
-20
• Operating Profit (EBITDA before other income) up 37% q-o-q at Rs. 16.6 cr
compared with Rs. 12.1 cr in last quarter;
• Profit before tax up 8% q-o-q at Rs. 14.3 cr compared with Rs. 13.2 cr in last
quarter; Other income declines from Rs. 4.7 cr to Rs. 1.1 cr.
• Profit after tax declines 18% Rs. 9.9 cr compared with Rs. 12.1 cr in last quarter;
Last quarter we carried certain previous period tax adjustments.
• Manpower productivity improves 18% q-o-q.
* Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas
5
8. Revenue – FY 2005-06
Operating Revenue
• Operating Revenue up 9.9% at Rs. 887 cr (Rs crore)
900
887
compared with Rs. 807 cr in last year 880
860
• Total Revenue up 12.5% at Rs. 916 cr
840
compared with Rs. 814 cr in last year.
820
807
• Other income increased from Rs. 7 cr to Rs. 29 800
cr primarily on account of profit of Rs. 25 cr on 780
sale of properties. 760
FY 05 FY 06
• Shift in revenue mix;Services Revenue up 14%; Total Revenue
equipment down 1%. (Rs crore)
940
916
920
• Revenue increased primarily on account of 900
68% increase in ITeS, 39% increase in E&T and 880
860
17% increase International Business. 840
814
• Share of international revenue increases from 820
800
26% to 28% of total operating revenue 780
760
* Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas FY 05 FY 06
8
9. Segmental Revenue - FY 2005-06
FY 06 FY05
73%
70%
27%
26%
3%
1%
Growth
0.2% 17.0%
0.15%
7.4%
0.1%
0.05%
0%
Domestic International
* Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas
9
10. Segmental Revenue (incl. International) - FY 2005-06
FY06 FY05
Customer Services
System Integration
32%
ITES 63% 32%
58%
Educational Training
3% Others
4%
2%
3%
Growth 3%
0%
80% 64%
60%
36%
40%
13%
20% 4%
0%
Customer Services Systems Integration ITES Education & Training
* Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas
10
11. Segmental Revenue – FY 2005-06
FY06 FY05
3%
8%
9% 2%
4%
3%
59%
55% 27%
26%
3% 1%
Growth
68%
80.00%
60.00% 39%
40.00% 17%
5%
20.00% 0%
0.00%
-20.00%
Customer System ITES Education & International
Services Integration Training
* Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas
11
12. Profitability – FY 2005-06
PAT
Operating Profit PBT
(Rs crore )
(Rs crore ) (Rs crore )
60
60 70 66.00
48.54
50
49.79
60
50
41.32
50 40
40
40 34.72 30
30 24.80
30
20
20
20
10
10 10
0
0 0
FY 05 FY 06
FY 05 FY 06 FY 05 FY 06
• Operating Profit (EBITDA before other income) up 20% at Rs. 49.8 cr
compared with Rs. 41.3 cr in last year;
• Profit before tax up 90% at Rs. 66.0 cr compared with Rs. 34.7 cr in last
year; Other income increase from Rs. 6.8 cr to Rs. 29.0 cr.
• Profit after tax up 96% Rs. 48.5 crs. compared with Rs. 24.8 cr in last
year; Average tax rate down from 29% to 26%
* Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas
12
14. Shareholder Value – 2005-06
EPS (Rs.) Book Value (Rs.) Return on Net worth (%)
160
35 25%
139
21%
29.12 140
30
20%
116
120
25
100
15%
20 13%
80
15.22
15
10%
60
10
40
5%
5 20
0 0%
0
FY 05 FY 06 FY 05 FY 06
FY 05 FY 06
(FY 06 book values and Return on net worth is calculated after proposed dividend of 50%)
* Standalone for CMC
14
15. Debtors Profile – FY 2005-06
Debtors
• Debtors level (after provisions) reduces to 30-60 days
9% 60-90 days
Rs. 233 crs (103 days) from Rs. 248 crs 6%
(117 days) during the year.
90-180 days
• Of Rs. 233 crs, Rs. 133 crs (57%) less than 11%
0-30 days
30 days. 57%
• Debtors over 6 month reduce from Rs. 52
crs (21%) to Rs. 39 crs (17%) >180 days
17%
• Borrowings reduced to Rs. 67 crore from Debtors Level
(No. of days )
Rs. 82 crs during the year. 140
117
120
104 103
100 92
87
80
60
40
20
0
5
6
5
05
5
'0
'0
'0
'0
e'
ar
ec
t
ar
n
ep
M
D
Ju
M
* Standalone for CMC
S 15
16. Manpower (FY 2005-06)
(Numbers)
• Net addition of 269 people in FY
4000
2006-07.
3577 3539
3431
• Continued Focus on building 3500 3289
capabilities and competencies
3000
especially in niche technology
like embedded systems etc. and 2500
select domains.
2000
• Focus on improved manpower
productivity through improved 1500
processed and tracking
1000
mechanism and Ultimatix. Q1 Q2 Q3 Q4
Productivity improved 18% in Q4.
* Standalone for CMC
16
18. Revenue – FY 2005-06
Operating Revenue
• Operating Revenue up 6.9% at Rs. 829 cr
(Rs crore)
840
829
830
compared with Rs. Rs. 776 cr in last year 820
810
• Total Revenue up 9.6% at Rs. 858 cr 800
790
compared with Rs. 782 cr in last year. 776
780
770
• Other income increased from Rs. 7 cr to 760
750
Rs. 29 cr primarily on account of profit of 740
FY 05 FY 06
Rs. 25 cr on sale of properties.
Total Revenue
• Shift in revenue mix;Services Revenue up (Rs crore)
880
14%; equipment down 1%. 858
860
840
• Revenue increased primarily on account 820
of 68% increase in ITeS, 39% increase in 800
782
E&T and increase of 5% each in CS and 780
760
International Business.
740
FY 05 FY 06
18
19. Profitability – FY 2005-06
PAT
PBT
Operating Profit
(Rs crore )
(Rs crore )
(Rs crore )
50
70
45 44.11
45
44.09
60.11
44 60 40
43 35
50
30
42
40
23.06
25
32.94
41
30 20
40 39.53
15
20
39
10
10
38 5
0
0
37
FY 05 FY 06
FY 05 FY 06
FY 05 FY 06
• Operating Profit (EBITDA before other income) up 12% at Rs. 44.1 cr
compared with Rs. 39.5 cr in last year;
• Profit before tax up 82% at Rs. 60.1 cr compared with Rs. 32.9 cr in last
year; Other income increase from Rs. 6.8 cr to Rs. 29.0 cr.
• Profit after tax up 91% Rs. 44.1 crs. compared with Rs. 23.1 cr in last
year; Average tax rate down from 30% to 27%
19
22. CMCA Financial Performance – Q4 (FY 2005-06)
('000 $) Q4 Q3 Variation
2006 2005 2006 q-o-q y-o-y
Total Revenue 8,556 5,114 7,730 11% 67%
Profit Before Tax 403 49 401 0% 722%
Profit After Tax 317 49 290 9% 547%
PBT Ratio 4.7% 1.0% 5.2%
PAT Ratio 3.7% 1.0% 3.8%
• CMC Americas continues to show improved performance both in
revenue and profit terms with 11% sequential growth in Revenue and 9%
sequential growth in Profits after Tax. Revenue and PAT growth is 67%
and 547% respectively on y-o-y basis.
• Revenue growth primarily driven by Embedded Systems and IT services
• Strict control on expenses led to further expansion in margins
22
23. CMC Americas Financial Performance – 2005-06
('000 $) Year Ended March
2006 2005 Variation
Total Revenue 29,142 19,896 46%
Profit Before Tax 1,334 394 239%
Profit After Tax 1,004 388 159%
PBT Ratio 4.6% 2.0%
PAT Ratio 3.4% 2.0%
• Revenue of CMC Americas higher by 46% at $ 29.1 mm compared
with $ 19.9 mm last year; Growth driven by embedded systems and
IT services in Americas
• CMC Americas crosses one million mark in profitability with PAT of
$1.004 mm an increase of 159% over $0.388 mm earned in the last
year; Higher value add services and strict control over costs
improved profitability.
23
