Analysts_Presentation_FY07

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Analysts_Presentation_FY07

  1. 1. Analysts Presentation Quarter Ended 31st December, 2006 13th January, 2007 Your IT Partner 1
  2. 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
  3. 3. Results FY 07 (Q3) - Consolidated 3
  4. 4. Revenue – FY 2006-07 (Q3) Operating Revenue (Rs crore) • Operating Revenue at Rs. 298.62 350 298.6 crore – up 44% y-o-y and 24% q-o-q. 300 240.8 250 • Total Revenue at Rs. 300.41 crore - 207.4 200 up 42% y-o-y and 24% q-o-q. 150 • Other income lower by Rs. 2.94 100 50 crore; Last year we had Rs. 4.03 FY 06 (Q3) FY 07 (Q3) FY 07 (Q2) Total Revenue crore profit on sale of properties. (Rs crore) 350 300.4 • Revenue growth across all SBUs. 300 242.3 250 • International Revenue at Rs. 89.30 211.9 200 crore up 41% y-o-y. Share of 150 international revenue at 30%. 100 50 FY 06 (Q3) FY 07 (Q3) FY 07 (Q2) * Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas 4
  5. 5. Segmental Revenue (incl. Intl’) - FY 2006-07 (Q3) FY07 FY06 35% 31% 60% 55% 5% 4% 4% Growth 6% 100% 84% 80% 59% 60% 40% 25% 20% 2% 0% Customer Services Systems Integration ITES Education & Training * Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas 5
  6. 6. Profitability – FY 2006-07 (Q3) PBT PAT EBITDA (Rs crore) (Rs crore) (Rs crore) 30 25 28.2 35 29.2 20.4 30 25 20 25 20 15 15.4 20 12.1 11.9 17.1 15 13.2 15 10 12.1 10 10 5 5 5 0 0 0 FY 06 (Q3) FY 07 (Q3) FY 07 (Q2) FY 06 (Q3) FY 07 (Q3) FY 07 (Q2) FY 06 (Q3) FY 07 (Q3) FY 07 (Q2) • EBITDA (before other income) at Rs. 29.20 crore up 142% y-o-y and 70% q-o-q. • Q3 EBITDA impacted by Rs. 8.00 crore provisioning on account of a contract under dispute (Q2 provisioning of Rs. 12.58 crore); EBITDA up 25% q-o-q and 208% y-o-y before this provisioning. • Profit before tax at Rs. 28.23 up 114% y-o-y and 84% q-o-q; Last year PBT includes Rs. 4.03 crore on profit on sale of properties. • Profit after tax at Rs. 20.40 crore up 69% y-o-y and 71% q-o-q. 6 * Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas
  7. 7. Margins – FY 2006-07 (Q3) EBITDA Margin PBT Margin PAT Margin (Rs crore) (Rs crore) (Rs crore) 12.00% 10.00% 8.00% 9.4% 9.00% 6.8% 9.8% 7.00% 10.00% 8.00% 5.7% 6.00% 7.00% 8.00% 6.3% 6.2% 4.9% 7.1% 5.00% 6.00% 5.8% 6.00% 5.00% 4.00% 4.00% 3.00% 4.00% 3.00% 2.00% 2.00% 2.00% 1.00% 1.00% 0.00% 0.00% 0.00% FY 06 (Q3) FY 07 (Q3) FY 07 (Q2) FY 06 (Q3) FY 07 (Q3) FY 07 (Q2) FY 06 (Q3) FY 07 (Q3) FY 07 (Q2) (EBITDA margins are before other income) 7 * Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas
  8. 8. – FY 2006-07 (Q3) Segment Results Q3 Q2 Variation Over (Rs. Crores) 06-07 05-06 06-07 y-o-y q-o-q Consolidated Results (Segment wise) Customer Services - Revenue 179.68 113.20 124.11 59% 45% - PBIT 10.07 6.77 10.94 49% -8% - Capital Employed 62.12 100.15 72.66 -38% -15% - PBIT Margin 5.6% 6.0% 8.8% Systems Integration - Revenue 91.59 73.28 89.28 25% 3% - PBIT 23.15 15.38 8.74 51% 165% - Capital Employed 105.54 113.05 91.19 -7% 16% - PBIT Margin 25.3% 21.0% 9.8% ITES - Revenue 15.35 8.36 17.08 84% -10% - PBIT 2.85 0.16 5.62 1681% -49% - Capital Employed 16.49 4.08 18.72 304% -12% - PBIT Margin 18.6% 1.9% 32.9% E&T - Revenue 11.91 11.63 10.75 2% 11% - PBIT 3.13 3.10 2.69 1% 16% - Capital Employed 2.24 2.58 4.44 -13% -50% - PBIT Margin 26.3% 26.7% 25.0% * Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas 8
  9. 9. Results FY 07 (Q3) - Standalone 9
  10. 10. Revenue – FY 2006-07 (Q3) Operating Revenue • Operating Revenue at Rs. 286.23 crore – up (Rs crore) 300 286.2 50% y-o-y and 29% q-o-q. 250 221.5 • Total Revenue at Rs. 288.02 crore - up 47% 191.2 200 y-o-y and 29% q-o-q. 150 • Revenue growth across all SBUs. 100 • Services Revenue at Rs. 149.47 crore up 50 FY 06 (Q3) FY 07 (Q3) FY 07 (Q2) 27% y-o-y and 4% q-o-q. Total Revenue (Rs crore) 300 288.0 • International Revenue at Rs. 76.47 crore up 62% y-o-y and 8% q-o-q. 250 222.9 196.0 200 • Domestic revenue at Rs. 209.32 crore up 150 46% y-o-y and 39% q-o-q. 100 50 FY 06 (Q3) FY 07 (Q3) FY 07 (Q2) 10
  11. 11. Shift in Revenue Mix - FY 2006-07 (Q3) - International FY 07 FY06 75% 73% 27% 25% Growth Trend - Int'l Income (%) (Rs . Cr ore ) 70.00% 90 62.20% 76.91 80 60.00% 71.18 66.32 70 50.00% 45.60% 60 55.17 47.42 50 40.00% 44.63 41.3 40 30.00% 30 20.00% 20 10 10.00% 0 0.00% 2- 6 Q 06 Q 06 Q 06 Q 07 Q 07 7 0 0 Domestic International Y Y Y Y Y Y Y F F F F F F F 1- 3- 4- 1- 2- 3- Q Q 11
  12. 12. Shift in Revenue Mix - FY 2006-07 (Q3) - Services FY 07 FY 06 62% 52% 48% 38% Growth Trend - Services Revenue (%) (Rs . Crore ) 100.00% 160 149.47 144.25 139.62 85.80% 90.00% 140 132.09 80.00% 117.62 120 105.01 70.00% 97.9 100 60.00% 80 50.00% 60 40.00% 27.10% 30.00% 40 20.00% 20 10.00% 0 0.00% 2- 6 Q 06 Q 06 Q 06 Q 07 Q 07 7 0 0 Equipment Services Y Y Y Y Y Y Y F F F F F F F 1- 3- 4- 1- 2- 3- Q Q 12 * Standalone numbers of CMC
  13. 13. Segmental Revenue (incl. Intl’) - FY 2006-07 (Q3) FY07 FY06 30% 28% 63% 60% 4% 5% 4% 6% Growth 100% 83% 80% 59% 60% 38% 40% 20% 2% 0% Customer Services Systems Integration ITES Education & Training 13 * Standalone numbers of CMC
  14. 14. Segmental Revenue – FY 2006-07 (Q3) FY07 FY06 4% 9% 7% 3% 6% 4% 58% 55% 24% 27% 2% 1% Growth 80.00% 62% 60% 60.00% 40.00% 8% 20.00% 4% 2% 0.00% Customer System Integration ITES Education & International Services Training 14 * Standalone numbers of CMC
  15. 15. Profitability – FY 2006-07 (Q3) PBT PAT EBITDA (Rs crore) (Rs crore) (Rs crore) 30 25 30 27.5 26.5 25 25 19.2 20 20 20 15 14.7 15 15 10.8 12.9 10.4 11.4 10 10.1 10 10 5 5 5 0 0 0 FY 06 (Q3) FY 07 (Q3) FY 07 (Q2) FY 06 (Q3) FY 07 (Q3) FY 07 (Q2) FY 06 (Q3) FY 07 (Q3) FY 07 (Q2) • EBITDA (before other income) at Rs. 27.49 crore up 172% y-o-y and 87% q-o-q. • Profit before tax at Rs. 26.46 crore up 133% y-o-y and 106% q-o-q. • Profit after tax at Rs. 19.24 crore up 79% y-o-y and 86% q-o-q. 15 * Standalone numbers of CMC
  16. 16. Margins – FY 2006-07 (Q3) EBITDA Margin PBT Margin PAT Margin (Rs crore) (Rs crore) (Rs crore) 12.00% 10.00% 8.00% 9.2% 9.00% 6.7% 7.00% 9.6% 10.00% 8.00% 6.00% 5.5% 7.00% 8.00% 5.8% 5.8% 5.00% 4.6% 6.6% 6.00% 6.00% 5.3% 5.00% 4.00% 4.00% 3.00% 4.00% 3.00% 2.00% 2.00% 2.00% 1.00% 1.00% 0.00% 0.00% 0.00% FY 06 (Q3) FY 07 (Q3) FY 07 (Q2) FY 06 (Q3) FY 07 (Q3) FY 07 (Q2) FY 06 (Q3) FY 07 (Q3) FY 07 (Q2) (EBITDA margins are before other income) 16 * Standalone numbers of CMC
  17. 17. – FY 2006-07 (Q3) Segment Results Q3 Q2 Variation Over (Rs. Crores) 06-07 05-06 06-07 y-o-y q-o-q Customer Services - Revenue 179.68 113.20 124.11 59% 45% - PBIT 10.07 6.77 10.94 49% -8% - Capital Employed 62.12 100.15 72.66 -38% -15% - PBIT Margin 5.6% 6.0% 8.8% Systems Integration - Revenue 79.19 57.33 69.96 38% 13% - PBIT 21.44 13.63 6.27 57% 242% - Capital Employed 92.62 105.12 78.96 -12% 17% - PBIT Margin 27.1% 23.8% 9.0% ITES - Revenue 15.34 8.36 17.09 83% -10% - PBIT 2.85 0.16 5.62 1681% -49% - Capital Employed 16.49 4.08 18.72 304% -12% - PBIT Margin 18.6% 1.9% 32.9% E&T - Revenue 11.91 11.63 10.75 2% 11% - PBIT 3.13 3.10 2.69 1% 16% - Capital Employed 2.24 2.58 4.44 -13% -50% - PBIT Margin 26.3% 26.7% 25.0% The above includes international Revenue of respective SBU 17 * Standalone numbers of CMC
  18. 18. Debtors Profile – FY 2006-07 (Q3) Debtors 60-90 days 30-60 days • Debtors level (after provisions) has 6% 10% increased to Rs. 272 crore (100 days) 90-180 days from Rs. 228 crore (92 days) during the 15% quarter. 0-30 days • Of Rs. 272 crs, Rs. 138 (52%) less than 52% 30 days. >180 days 17% • Accrued debtors decrease from 121 (49 Debtors Level days) crore to Rs. 112 crore (41 days). (No. of days ) 140 117 120 • Total Debtors remain at 141 days. 107 104 103 100 100 92 80 • Borrowings reduced from Rs. 48 crore 60 to Rs. 26 crore during the quarter. 40 20 0 6 5 05 06 6 6 '0 '0 '0 t'0 e' e' ar ec ar ep n n M D Ju Ju M S 18
  19. 19. Manpower Manpower Strength 3616 3528 • Continued Focus on 3577 3539 3431 3425 3500 3289 3000 improved manpower 2500 2000 productivity through 1500 1000 improved processes and 500 0 tracking mechanism. Q 06 Q 06 Q 06 Q 06 Q 07 Q 07 7 0 Y Y Y Y Y Y Y F F F F F F F 1- 2- 3- 4- 1- 2- 2- Q Productivity, measured a Manpower Productivity - NVA Per Person Mth ('000 Rs .) 120 Net Value Added per 97.25 100 87.67 88.27 84.32 person month improved 80 71.63 67.93 63.55 35% y-o-y and 10% q-o-q. 60 40 20 0 2- 6 Q 06 Q 06 Q 06 Q 07 Q 07 7 0 0 Y Y Y Y Y Y Y F F F F F F F 1- 3- 4- 1- 2- 3- 19 Q Q * Standalone numbers of CMC
  20. 20. Thank You 20

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