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CMC net profit grows 33% in FY07-08 with strong cash flows

This article was posted on Apr 17, 2008 and is filed under Press Releases

CMC Limited announced total consolidated revenues of Rs. 1076.64 crore for 2007-08 (a marginal decline of 0.8% primarily on account of 3.6% decline in low margin equipment revenue). Operating revenues for the year 2007-08 was Rs. 1064.74 crore, compared to Rs. 1079.81 crore earned in the previous year. The company’s consolidated profit after tax for the year was Rs. 92.35 crore registering an increase of 33% compared with Rs. 69.32 crore in the previous year. The Operating Profit (EBITDA) increased by 20% to Rs. 119.06 crore compared with Rs. 98.97 crore in the previous year. Operating margins increased by 201 basis points over the previous year.

The company announced an increase in dividend to Rs. 11.00 per share for 2007-08 (Rs. 8.00 per share for 2006-07).

“In pursuit of continuing focus on improvement in business mix, the Company increased its services business revenue share by 90 basis points to 63.5% by corresponding reduction in equipment business. In addition, the Company worked relentlessly to improve margins in equipment business by better negotiations.” Said R Ramanan, CEO and MD. “American Geography contributed with 18% growth over previous year. Emphasis on growing international business will continue.”, added Mr. Ramanan

“Strong financial management has helped the Company to end the year with cash surplus of Rs. 147 crore, which will enable the Company to finance its future growth. The Company earned Rs. 1.47 crore as interest and dividend from investment of surplus funds compared to net interest expense of Rs. 3.41 crore in the previous year.”, said J K Gupta, Chief Financial Officer.

The standalone revenues of the Company for the year ended March 2008 was Rs. 989.09 crore compared to Rs. 994.40 in the previous year. Operating Profit (EBITDA) of the Company on a standalone basis for the year ended March 2008 increased 24% to Rs. 113.44 crore compared with Rs. 91.32 crore earned in the previous year. The net profit on standalone basis is Rs. 88.22 crore, an increase of 38% over Rs. 64.10 crore earned in the previous year.

For the quarter ended March 2008, the company continued its thrust on profitable business resulting in 88 basis point expansion in operating margin over previous quarter on a consolidated basis. The net profit on consolidated basis was Rs. 24.02 crore, an increase of 10% over Rs. 21.91 crore earned in the previous quarter.

Sourced From: Vaishnavi Corporate Communications Pvt Ltd

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