The document provides an analysis of CMC's financial performance for the fiscal year ending March 31, 2006. Some key highlights include:
- Total revenue was up 9.6% at Rs. 858 cr compared to Rs. 782 cr last year driven by increases in ITeS, E&T, and international business.
- Operating profit was up 12% at Rs. 44.1 cr. Profit before tax grew 82% to Rs. 60.1 cr and profit after tax increased 91% to Rs. 44.1 cr.
- Revenue from customer services was up 14% while systems integration grew 39% and ITeS increased 68% over the previous fiscal year.
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Analysts_Presentation_FY06
1. Analys ts Pres entation
Year E nded 31s t March, 2006
15th April, 2006
Your IT Partner
1
2. Dis claimer
This pres entation has been prepared by C MC s olely for providing information about the C ompany.
C ertain s tatements in this pres entation are forward looking s tatements , which involve a number of
ris ks , and uncertainties that could caus e actual res ults to differ materially from thos e in s uch forward
looking s tatements . The ris k and uncertainties relating to thes e s tatements include, but are not limited
to, ris k and uncertainties reg arding fluctuations in earning s , our ability to manag e g rowth, intens e
competition in IT s ervices including thos e factors , which may affect our cos t advantag e, wag e
increas es , our ability to attract and retain hig hly s killed profes s ional, time and cos t overruns on fixed
price contracts , our ability to manag e our international operations , reduced demand of technolog y in
our key focus areas and our s oftware products and s olutions , withdrawal of G overnment fis cal
incentives , political ins tability, un-authorized us e of our intellectual property and g eneral economic
conditions affecting our indus try. C MC , from time to time, make additional written or oral forward
looking s tatements , including our report to s hareholders . The C ompany does not undertake to update
any forward looking s tatement that may have been made from time to time by or on behalf of the
C ompany. This communication is for g eneral information purpos es only, without reg ard to s pecific
objectives , financial s ituations and needs of any particular pers on. Pleas e note that inves tments in
s ecurities are s ubject to ris ks including los s of principal amount. The C ompany does not accept any
liability whats oever, direct or indirect, that may aris e from the us e of the information herein.
2
3. R evenue – FY 2005-06
Operating Revenue
• Operating R evenue up 6.9% at R s . 829 cr
(Rs cror e )
840
829
830
compared with R s . R s . 776 cr in las t year 820
810
• Total R evenue up 9.6% at R s . 858 cr 800
790
compared with R s . 782 cr in las t year. 776
780
770
• Other income increas ed from R s . 7 cr to 760
750
R s . 29 cr primarily on account of profit of 740
FY 05 FY 06
R s . 25 cr on s ale of properties .
T otal Revenue
• S hift in revenue mix;S ervices R evenue up (Rs crore )
880
14% ; equipment down 1% .
858
860
840
• R evenue increas ed primarily on account 820
of 68% increas e in ITeS , 39% increas e in 800
782
E&T and increas e of 5% each in C S and 780
760
International B us ines s . 740
FY 05 FY 06
3
4. S eg mental R evenue (incl. International) - FY 2005-06
FY06 FY05
FY03
96.3
Customer Services
27% 30.1
System Integration
65%
62% 24.8
ITES
29%
336.1
Educational Training
120.6 Others
4%
4%
2%
4%
Growth 3%
0%
80% 64%
60%
36%
40%
20% 4% 3%
0%
Customer Services Systems Integration ITES Education & Training
4
5. S eg mental R evenue – FY 2005-06
FY06 FY05
9% 3% 10%
2%
4%
4%
60%
59%
22%
23%
3%
1%
Growth
68%
80.00%
60.00% 39%
40.00%
5%
5%
20.00% 0%
0.00%
-20.00%
Customer System ITES Education & International
Services Integration Training
5
6. S eg mental R evenue - FY 2005-06
FY 06 FY05
75% 76%
22%
23%
3%
1%
Growth
7.4%
0.08%
5.1%
0.06%
0.04%
0.02%
0%
Domestic International
6
7. Profitability – FY 2005-06
PAT
PBT
Operating Profit
(Rs cr or e )
(Rs cr or e )
(Rs cr or e )
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 (EB ITDA before other income) up 12% at R s . 44.1 cr
compared with R s . 39.5 cr in las t year;
• Profit before tax up 82% at R s . 60.1 cr compared with R s . 32.9 cr in las t
year; Other income increas e from R s . 6.8 cr to R s . 29.0 cr.
• Profit after tax up 91% R s . 44.1 crs . compared with R s . 23.1 cr in las t
year; Averag e tax rate down from 30% to 27%
7
8. C ons olidated Financial Performance – 2005-06
(Rs crore) FY06 FY05 Growth R evenue of C MC Americas
•
Y-o-Y
hig her by 46% at $ 29.1 mm
Total Revenue 916.2 814.2 12.5% compared with $ 19.9 mm las t
year; G rowth driven by
PBT 66.0 34.7 90.1%
embedded s ys tems and IT
PBT Margins 7.2% 4.3%
s ervices in Americas
PAT 48.5 24.8 95.7%
C MC Americas cros s es one
•
PAT Margin 5.3% 3.0% million mark in profitability with
PAT of $1.004 mm an increas e
of 159% over $0.388 mm earned
in the las t year; Hig her value
add s ervices and s trict control
over cos ts improved
profitability.
8
10. S hareholder 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%)
10
11. Debtors Profile – FY 2005-06
Debtors
Debtors level (after provis ions ) reduces to
• 30-60 days
9% 60-90 days
R s . 233 crs (103 days ) from R s . 248 crs 6%
(117 days ) during the year.
90-180 days
Of R s . 233 crs , R s . 133 crs (57% ) les s than
• 11%
0-30 days
30 days . 57%
Debtors over 6 month reduce from R s . 52
•
crs (21% ) to R s . 39 crs (17% ) >180 days
17%
B orrowing s reduced to R s . 67 crore from
• De btors Le v e l
(No . o f d ays )
R s . 82 crs during the year. 140
117
120
104 103
100 92
87
80
60
40
20
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5
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5
6
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11
13. R evenue – FY 2005-06 (Q4)
Operating Revenue
(Rs crore )
• Operating R evenue up 35% q-o-q and 300
258.6
22% y-o-y at R s . 259 cr crore 250
212.5
compared with R s . 191 crore in las t 191.2
200
quarter and R s . 213 crore in las t year. 150
• Total R evenue up 33% q-o-q and 21% 100
y-o-y at R s . 260 crore compared with 50
R s . 196 crore in las t quarter and R s .
FY 05 (Q4) FY 06 (Q4) FY 06 (Q3)
Total Revenue
215 crore in las t year. (Rs crore )
300
259.7
• Other income lower at R s . 1.1 crore 250
215.5
compared with R s . 4.7 crore in las t 196.0
200
quarter and R s . 3.0 crore in las t year. 150
100
50
FY 05 (Q4) FY 06 (Q4) FY 06 (Q3)
13
14. Profitability – FY 2005-06 (Q4)
Operating Profit PBT PAT
(Rs crore )
(Rs crore ) (Rs crore )
20 15 15
12.53
11.38 10.76
14.9
15 8.56
10 10
10.1
10 5
5
5 0 0
FY 05 (Q4) FY 06 (Q4) FY 06 (Q3) FY 05 (Q4) FY 06 (Q4) FY 06 (Q3)
0
-5
-5
FY 05 (Q4) FY 06 (Q4) FY 06 (Q3)
-5
-10
-10
-10
-15 -15
-14.29
-16.73
-13.2
-15
-20
-20
• Operating Profit (EB ITDA before other income) up 48% q-o-q at R s . 14.9
cr compared with R s . 10.1 cr in las t quarter;
• Profit before tax up 10% q-o-q at R s . 12.5 cr compared with R s . 11.4 cr in
las t quarter; Other income declines from R s . 4.7 cr to R s . 1.1 cr.
• Profit after tax declines 20% R s . 8.5 cr compared with R s . 10.8 cr in las t
quarter; Las t quarter we carried certain previous period tax adjus tments .
• Manpower productivity improves 18% q-o-q.
14
15. Quarterly Performance – FY 2005-06 (S equential)
T otal Revenue Customer Services Systems Integration
(Rs cr or e ) (Rs cr or e ) (Rs cr or e )
300 180 25 23.8
158.6
259.7
160
250
20 18.5
140
204.5 121.3
197.6 196.0 16.3 16.2
200 120 112.7
106.2
15
100
150
80
10
100 60
40 5
50
20
0 0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Edu & Trg. International
ITES
(Rs cr or e ) (Rs cr or e )
(Rs cr or e )
14 60
12 11.1 55.2
11.6
12 47.4
50
10
44.6
10.4
9.9 41.3
10
7.6 40
8
8
30
6 6.3
5.3
4.6 6
4 20
4
10
2 2
0 0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
15
16. Manpower (FY 2005-06)
(Numbers)
• Net addition of 269 people in FY
4000
2006-07.
3577 3539
3431
• C ontinued Focus on building 3500 3289
capabilities and competencies
3000
es pecially in niche technolog y like
embedded s ys tems etc. and 2500
s elect domains .
2000
• Focus on improved manpower
1500
productivity throug h improved
proces s ed and tracking 1000
mechanis m and Ultimatix. Q1 Q2 Q3 Q4
Productivity improved 18% in Q4.
16
