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. Performance Highlight – FY 2006-07
• Consolidated Revenue crossed Rs. 1000 crore, at Rs.
1085.30 crore, an increase of 18%
• All four SBUs contributed to growth in revenue.
• Consolidated PBDIT crossed Rs. 100 crore mark, at Rs.
104.46 crore, an increase of 33%
• Operating Profit (EBITDA) up 99% to Rs. 98.97 crore,
compared with Rs. 49.79 crore last year
• Operating Margin expansion of 355 basis points due to
improved business mix and manpower productivity
• International business increase by 54%, share of
international revenue increased from 28% to 35%, driven
by American and UK geographies.
• American Subsidiary business grew by 32%
4
* Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas
5. Performance Highlight – FY 2006-07
• Services Revenue increases by 32%, share of services
revenue increases from 58% to 63%, driven by SI and
ITES SBUs.
• Embedded Systems revenue grows by 21%
• Significant new wins in ITES space in the international
market; 56% of ITES SBU revenues from international
business
• Significant improvement in cash flows, debtors and
accrued debtors level reduces by 28 days.
• Loans reduced by 74% to Rs. 18 crore; debt to equity ratio
of 0.08:1, the best in last 10 years.
5
* Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas
7. Shift in Revenue Mix - FY 2006-07 - International
Trend - Int'l Income
Int'l Business Share
(Rs . Cr ore )
(% s hare )
400 380.62
40%
35%
350
35%
300
30% 28%
26%
246.92
250
25%
211.07
200
20%
150
15%
100
10%
50
5%
0
0%
FY 05 FY 06 FY 07
FY 05 FY 06 FY 07
• International Revenue growth powered by 21% growth in Embedded
systems and new services from ITES.
• 56% of ITES SBU revenue came from international markets
• New facilities set in Kolkata and Mumbai to serve international customers in
ITES space.
7
* Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas
8. Shift in Revenue Mix - FY 2006-07 - Services
Trend - Services Income Services Business Share
(Rs . Cr ore )
(% s hare )
800
70%
63%
676.26
700 58%
60%
53%
600
50%
511.02
500
428.8
40%
400
30%
300
20%
200
100 10%
0
0%
FY 05 FY 06 FY 07
FY 05 FY 06 FY 07
• SI and ITES SBU’s drive growth in services businesses.
• SI grows by 34% and ITES by 126% in 2006-07
• Embedded systems grows by 21% in 2006-07
8
* Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas
9. Margin Improvement - FY 2006-07
Operating (EBITDA) Margin PBT Margin
PAT Margin
(%) (%)
(%)
10.00% 9.00% 8.55%
9.17% 7.00%
6.39%
9.00% 8.00%
7.20%
6.00%
8.00%
7.00% 5.30%
7.00% 5.00%
6.00%
5.61%
6.00%
5.12%
5.00% 4.00%
4.26%
5.00%
3.05%
4.00%
4.00% 3.00%
3.00%
3.00%
2.00%
2.00%
2.00%
1.00%
1.00% 1.00%
0.00%
0.00% 0.00%
FY 05 FY 06 FY 07
FY 05 FY 06 FY 07 FY 05 FY 06 FY 07
• Shift in revenue mix towards more value added services and international leads
to margin expansion; Margin improvement across SBUs.
• PBT of 2005-06 included profit on sale of properties amounting to Rs. 24.66
crore.
• Profits of 2006-07 is impacted by provisioning of Rs. 24.38 crore on account of
possible losses arising out of a contract under dispute.
• 28% improvement in manpower productivity
9
* Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas
11. Shareholder Value – 2006-07
EPS (Rs.) Book Value (Rs.) Return on Net worth (%)
180
45 30%
42.31 28%
153
160
40
25%
139
35 140
21%
29.12 116
30 20%
120
25 100
15% 13%
20 80
15.22
15 10%
60
10 40
5%
5 20
0 0%
0
FY 05 FY 06 FY 07 FY 05 FY 06 FY 07
FY 05 FY 06 FY 07
(FY 07 book values and Return on net worth is calculated after proposed dividend of 80%)
11
* Standalone numbers of CMC
12. Debtors Profile – FY 2006-07
Debtors
• Debtors level (after provisions) has reduced 30-60 days 60-90 days
12% 7%
to Rs. 242 crore (89 days) from 103 days at
the beginning of the year. 90-180 days
13%
• Of Rs. 242 crs, Rs. 121 (50%) less than 30
days.
0-30 days
• Debtors over 6 month reduced Rs. 47 crs 50%
(17%) to Rs. 44 crore (18%) >180 days
18%
• Accrued debtors reduces from Rs. 132 Debtors Level
crore (58 days) to Rs. 118 crore (44 days). (No. of days )
140
117
120
• Total Debtors reduces from 161 days to 133 107
104 103 100
100 92 89
days. 80
60
• Borrowings reduced from Rs. 67 crore to 40
Rs. 18 crore during the year. 20
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12
* Standalone numbers of CMC
13. Manpower
Manpower Strength
• Continued Focus on
3509
3431
3500
3162
3000
improved manpower 2500
productivity through 2000
1500
improved processes and 1000
500
tracking mechanism. 0
FY 05 FY 06 FY 07
Productivity, measured a Manpower Productivity - NVA Per
Person Mth
('000 Rs .)
100
Net Value Added per 92.27
90
80 74.56
person month improved 71.96
70
60
by 28%. 50
40
30
20
10
0
FY 06 FY 06 FY 07
13
* Standalone numbers of CMC