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Analysts_Presentation_QE_June%2006

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Analysts_Presentation_QE_June%2006

  1. 1. Analys ts Pres entation Quarter E nded 30th June, 2006 17th July, 2006 Your IT Partner 1
  2. 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. 3. R es ults FY 07 (Q1) - C ons olidated 3
  4. 4. R evenue – FY 2006-07 (Q1) Operating Revenue Operating R evenue up 25% y-o-y at R s . 251.23 • (Rs crore ) 300 crore compared with R s . 200.54 crore in the 278.0 251.2 corres ponding period las t year. 250 200.5 Total R evenue up 17% y-o-y at R s . 252.05 crore • 200 compared with R s . 215.18 crore in the 150 corres ponding period las t year. 100 Other income lower by 13.82 cr; Las t year we • 50 had R s . 13.96 crore profit on s ale of properties . FY 06 (Q1) FY 07 (Q1) FY 06 (Q4) Total Revenue Improvement in revenue mix; S ervices R evenue • (Rs crore ) 300 279.1 up 47% y-o-y and 5% q-o-q. S ervices s hare up 252.1 250 from 54% to 63% . 215.2 200 International R evenue up 60% y-o-y and 16% q- • o-q. S hare of international R evenue at 34% up 150 from 26% las t year and 27% las t quarter. 100 50 FY 06 (Q1) FY 07 (Q1) FY 06 (Q4) * Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas 4
  5. 5. S eg mental R evenue (incl. Intl’) - FY 2006-07 (Q1) FY07 FY06 36% 63% 31% 54% 7% 3% Growth 3% 3% 300% 248% 200% 100% 45% 8% 0% 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 (Q1) PAT PBT EBITDA (Rs crore ) (Rs crore ) (Rs crore ) 18 30 25 16.2 16.0 22.1 16 24.4 25 20 14 20.2 16.6 12 20 9.9 15 10 12.7 14.3 15 8 10 6 10 4 5 5 2 0 0 0 FY 06 (Q1) FY 07 (Q1) FY 06 (Q4) FY 06 (Q1) FY 07 (Q1) FY 06 (Q4) FY 06 (Q1) FY 07 (Q1) FY 06 (Q4) E B ITDA (before other income) at R s . 22.09 crore up 33% q-o-q and 74% y-o-y; • Profit before tax at R s . 20.19 crore up 41% q-o-q but down 17% y-o-y due to lower • other income; Other income declines from R s . 14.64 cr to R s . 0.82 cr. Profit after tax at R s . 16.16 crore up 63% q-o-q and 1% y-o-y. • * Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas 6
  7. 7. Marg ins – FY 2006-07 (Q1) (Rs crore ) EBITDA (Rs crore ) PBT Margin 10.00% 12.00% 11.3% 8.8% 9.00% 10.00% 8.00% 7.00% 8.0% 6.3% 8.00% 6.0% 6.00% 5.00% 6.00% 5.1% 4.00% 4.00% 3.00% 2.00% 2.00% 1.00% 0.00% 0.00% FY 06 (Q1) FY 07 (Q1) FY 06 (Q4) FY 06 (Q1) FY 07 (Q1) FY 06 (Q4) PBT Margin (Excl Other PAT Margin (Rs crore ) Income) (Rs crore) 8.00% 7.4% 9.00% 7.00% 7.7% 8.00% 6.4% 7.00% 6.00% 6.00% 5.00% 4.9% 4.7% 5.00% 4.00% 3.6% 4.00% 3.00% 3.00% 2.00% 2.00% 1.00% 1.00% 0.00% 0.00% FY 06 (Q1) FY 07 (Q1) FY 06 (Q4) FY 06 (Q1) FY 07 (Q1) FY 06 (Q4) 7 * Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas
  8. 8. S eg ment R es ults – FY 2006-07 (Q1) Q1 Q4 Variation Over (Rs. Crores) 06-07 05-06 05-06 y-o-y q-o-q Consolidated Results (Segment wise) Customer Services - Revenue 136.47 126.68 168.00 8% -19% - PBIT 8.89 8.34 11.64 7% -24% - Capital Employed 105.93 98.75 97.48 7% 9% - PBIT Margin 6.5% 6.6% 6.9% Systems Integration 0 0 0 - Revenue 90.50 62.42 88.65 45% 2% - PBIT 20.24 9.80 15.91 107% 27% - Capital Employed 111.50 91.12 109.77 22% 2% - PBIT Margin 22.4% 15.7% 17.9% ITES 0 0 0 - Revenue 17.97 5.17 11.98 248% 50% - PBIT 5.85 0.43 1.18 1260% 396% - Capital Employed 14.60 5.61 5.08 160% 187% - PBIT Margin 32.6% 8.3% 9.8% E&T 0 0 0 - Revenue 6.37 6.35 9.77 0% -35% - PBIT -0.68 0.93 0.88 -173% -177% - Capital Employed 1.63 0.50 1.85 226% -12% - PBIT Margin -10.7% 14.6% 9.0% * Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas 8
  9. 9. R es ults FY 07 (Q1) - S tandalone 9
  10. 10. R evenue – FY 2006-07 (Q1) Operating Revenue Operating R evenue up 22% y-o-y at R s . 231.53 cr • (Rs crore ) crore compared with R s . 189.87 crore in the 300 258.6 corres ponding period las t year. 250 231.5 Total R evenue up 14% y-o-y at R s . 232.35 crore • 189.9 200 compared with R s . 204.51 crore in the 150 corres ponding period las t year. 100 Other income lower at R s . 0.82 crore compared • 50 with R s . 14.64 crore in the corres ponding period FY 06 (Q1) FY 07 (Q1) FY 06 (Q4) Total Revenue las t year; Las t year we had R s . 13.96 crore profit (Rs crore ) on s ale of properties . 300 259.7 250 Improvement in revenue mix; S ervices R evenue • 232.4 204.5 up 43% y-o-y and 6% q-o-q. No increas e in 200 equipment. S ervices s hare up from 52% to 60% . 150 International R evenue up 61% y-o-y and 20% q- • 100 o-q. S hare of international R evenue at 29% up 50 from 22% las t year and 21% las t quarter. FY 06 (Q1) FY 07 (Q1) FY 06 (Q4) 10
  11. 11. S hift in R evenue Mix - FY 2006-07 (Q1) - International FY 07 FY06 78% 71% 29% 22% Growth T re nd - Int'l Income (%) (Rs . Cr or e ) 70.00% 70 66.32 60.60% 60.00% 60 55.17 50.00% 47.42 50 44.63 41.3 40.00% 40 30.00% 30 20.00% 20 11.20% 10.00% 10 0.00% 0 Domestic International Q1- Q2- Q3- Q4- Q1- FY06 FY06 FY06 FY06 FY07 11
  12. 12. S hift in R evenue Mix - FY 2006-07 (Q1) - S ervices FY 07 FY 06 60% 52% 48% 40% Growth T rend - Services Revenue (%) (Rs . Cr or e ) 45.00% 42.60% 160 139.62 40.00% 140 132.09 35.00% 117.62 120 105.01 30.00% 97.9 100 25.00% 80 20.00% 60 15.00% 10.00% 40 5.00% 20 -0.10% 0.00% 0 Equipment Services Q1- Q2- Q3- Q4- Q1- -5.00% FY06 FY06 FY06 FY06 FY07 12
  13. 13. S eg mental R evenue (incl. Intl’) - FY 2006-07 (Q1) FY07 FY06 31% 67% 58% 27% 8% 3% 3% 3% Growth 300% 248% 200% 100% 37% 8% 0% 0% Customer Services Systems Integration ITES Education & Training 13
  14. 14. S eg mental R evenue – FY 2006-07 (Q1) FY07 FY06 10% 4% 8% 2% 3% 3% 60% 20% 54% 29% 7% 0% Growth 86% 100.00% 80.00% 61% 60.00% 39% 40.00% 5% 20.00% 0% 0.00% Customer System ITES Education & International Services Integration Training 14
  15. 15. Profitability – FY 2006-07 (Q1) PAT PBT EBITDA (Rs crore ) (Rs crore ) (Rs crore ) 18 25 25 23.6 15.3 16 15.0 20.5 20 20 14 18.5 12 14.9 15 15 10 12.5 8.6 11.8 8 10 10 6 4 5 5 2 0 0 0 FY 06 (Q1) FY 07 (Q1) FY 06 (Q4) FY 06 (Q1) FY 07 (Q1) FY 06 (Q4) FY 06 (Q1) FY 07 (Q1) FY 06 (Q4) E B ITDA (before other income) at R s . 20.46 crore up 37% q-o-q and 73% y-o-y; • Profit before tax at R s . 18.52 crore up 48% q-o-q but down 21% y-o-y due to lower • other income; Other income declines from R s . 14.64 cr to R s . 0.82 cr. Profit after tax at R s . 14.96 crore up 75% q-o-q but down 2% y-o-y due to larg e • other income in las t year firs t quarter. Manpower productivity improves 29% y-o-y and 4% q-o-q. • Significant improvement in profitability y-o-y and q-o-q due to improvement in business mix towards international business and more value added Services 15
  16. 16. Marg ins – FY 2006-07 (Q1) (Rs cror e ) EBITDA (Rs cr or e ) 10.00% PBT M argin 14.00% 8.8% 9.00% 11.5% 12.00% 8.00% 10.00% 7.00% 6.2% 5.8% 8.0% 6.00% 8.00% 5.00% 6.00% 4.00% 4.8% 4.00% 3.00% 2.00% 2.00% 1.00% 0.00% 0.00% FY 06 (Q1) FY 07 (Q1) FY 06 (Q4) FY 06 (Q1) FY 07 (Q1) FY 06 (Q4) PBT Margin (Excl Other PAT Margin (Rs cr or e ) Income) (Rs crore ) 8.00% 7.5% 8.00% 7.6% 7.00% 6.4% 7.00% 6.00% 6.00% 5.00% 4.7% 5.00% 4.4% 4.00% 3.3% 4.00% 3.00% 3.00% 2.00% 2.00% 1.00% 1.00% 0.00% 0.00% FY 06 (Q1) FY 07 (Q1) FY 06 (Q4) FY 06 (Q1) FY 07 (Q1) FY 06 (Q4) Margin Expansion by over 300 basis points q-o-q – across all measures 16
  17. 17. S eg ment R es ults – FY 2006-07 (Q1) Q1 Q4 Variation Over (Rs. Crores) 06-07 05-06 05-06 y-o-y q-o-q Customer Services - Revenue 136.47 126.68 168.00 8% -19% - PBIT 8.89 8.34 11.64 7% -24% - Capital Employed 105.93 98.75 97.48 7% 9% - PBIT Margin 6.5% 6.6% 6.9% Systems Integration - Revenue 70.79 51.74 69.32 37% 2% - PBIT 18.54 8.95 14.23 107% 30% - Capital Employed 100.79 85.59 100.20 18% 1% - PBIT Margin 26.2% 17.3% 20.5% ITES - Revenue 17.97 5.17 11.98 248% 50% - PBIT 5.85 0.43 1.18 1260% 396% - Capital Employed 14.60 5.61 5.08 160% 187% - PBIT Margin 32.6% 8.3% 9.8% E&T - Revenue 6.37 6.35 9.77 0% -35% - PBIT -0.68 0.93 0.88 -173% -177% - Capital Employed 1.63 0.50 1.85 226% -12% - PBIT Margin -10.7% 14.6% 9.0% The above includes international Revenue of respective SBU 17
  18. 18. Manpower Manpowe r Strength • C ontinued Focus on building 3577 3539 3431 3425 3500 3289 capabilities and competencies 3000 2500 es pecially in niche technolog y like 2000 embedded s ys tems etc. and 1500 s elect domains . 1000 500 • Focus on improved manpower 0 Q1- Q2- Q3- Q4- Q1- FY06 FY06 FY06 FY06 FY07 productivity throug h improved Manpowe r Productivity - Net Value proces s es and tracking Added Pe r Person Mth ('000 Rs .) 100 mechanis m and Ultimatix. 87.45 90 84.32 80 Productivity improved 29% y-o-y 71.63 67.93 70 63.55 and 4% q-o-q. 60 50 40 30 20 10 0 Q1- Q2- Q3- Q4- Q1- FY06 FY06 FY06 FY06 FY07 18
  19. 19. Thank You 19

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