This document analyzes the financial status and position of CMC Ltd. It provides an overview of the IT-BPM sector in India and how the country has become a global outsourcing leader. The document then analyzes CMC Ltd's revenue, profits, expenses and various financial ratios over 2013-2015. It shows the company's revenue increased 11% while operating profit rose 21%. Finally, it calculates working capital for each year, showing an increase from 2013 to 2015.

1. ABHISHEK KUMAR
PIBM
ANALYSIS OF FINANCIAL STATUS
AND POSITION OF CMC LTD.

2. SECTORIAL ANALYSIS
• The IT-BPM sector in India expanded at a CAGR of 15 per cent over 2010–15, which is 3–4
times higher than the global IT-BPM growth, and is estimated to expand at a CAGR of 9.5 per
cent to USD300 billion by 2020.
• India is the world’s largest sourcing destination, accounting for approximately 55 per cent of
the USD146 billion market. The country’s cost competitiveness in providing IT services, which
is approximately 3-4 times cheaper than the US continues to be its USP in the global sourcing
market.
• India’s IT industry contributes about 2% of GDP.
• Indian IT Industry is not only limited to outsourcing but also hold position in e-commerce
sector which consist of 14% of total revenue of IT firm in India.
• Technologies, such as telemedicine, health, remote monitoring solutions and clinical
information systems, would continue to boost demand for IT service across the globe.
• India’s highly qualified talent pool of technical graduates is one of the largest in the world,
facilitating its emergence as a preferred destination for outsourcing, computer
science/information technology accounts for the biggest chunk of India' fresh engineering
talent pool, with more than 98 per cent of the colleges offering this stream.
• The sector ranks fourth in India’s total FDI share and accounts for approximately 37 per
• cent of total Private Equity and Venture investments in the country.

4. PARETO CHART

5. COMPANY ANALYSIS
The company revenue has increased from 630cr to 2513cr which is nearly
About 11% rise.
The operating profit has increased by 21%.
Its main operation for software for clients from various industries like logistics, Steel plant,
Training and development , Financial report analysis and many more.

6. RATIO & ANALYSIS
• Liquidity
• Solvency
• Profitability
• Trend
• Horizontal
• Vertical
• Common Size

7. TREND ANALYSIS
2015
2014
2013
0
20
40
60
80
100
120
140
TOTAL REVENUE

8. Trend Analysis
2015
2014
2013
0
20
40
60
80
100
120
140
TOTAL EXP

9. Trend Analysis
2015
2014
2013
90
95
100
105
110
115
120
NET PROFIT

10. Liquidity Ratio
Mar-15
Mar-14
1.9
1.95
2
2.05
2.1
2.15
2.2
2.25
2.3
2.35
2.4
Current Ratio

11. Liquidity Ratio
Quick Ratios
1.8
1.9
2
2.1
2.2
2.3
2.4
Jan-14
Jan-15
Quick Ratios

12. Liquidity Ratio
Cash Ratio
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
Jan-14
Jan-15
Cash Ratio
Cash Ratio

13. Profitability Ratio
Mar-15
Mar-14
0.1
0.105
0.11
0.115
0.12
0.125
0.13
Net Profit
Margin
0.110253816
0.125694544
Mar-15
Mar-14
0
0.002
0.004
0.006
0.008
0.01
0.012
0.014
0.016
0.018
0.02
operating
expense ratio

14. Solvency Ratio
Long term debt ratio
0.027
0.028
0.029
0.03
0.031
0.032
0.033
0.034
0.035
0.036
2015
2014
Long term debt ratio
2015
2014
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Total Liabilities ratio
2015
2014

15. WORKING CAPITAL
• WORKING CAPITAL 2015 = 126430.11 - 53616.25 = 72813.86
• WORKING CAPITAL 2014 = 112951.44 - 55015.82 = 57935.62
• WORKING CAPITAL 2013 = 98215.10 – 45,473.89 = 52741.21

16. The End