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Analysts Presentation
Quarter Ended 31st March, 2006


      Mumbai; 20th April, 2006




         Your IT Partner


     ...
Disclaimer
This presentation has been prepared by CMC solely for providing information about the Company.
Certain statemen...
Financial Performance - Q4 (FY 06)




                                     3
Revenue – FY 2005-06 (Q4)
                                                                                      Operating ...
Profitability – FY 2005-06 (Q4)
                     Operating Profit                                                     ...
Quarterly Performance – FY 2005-06 (Sequential)
                                                             Customer Serv...
Financial Performance – FY 2005-06




                                     7
Revenue – FY 2005-06
                                                                                      Operating Reven...
Segmental Revenue - FY 2005-06
                                      FY 06                                             FY0...
Segmental Revenue (incl. International) - FY 2005-06
                         FY06                                        ...
Segmental Revenue – FY 2005-06

                          FY06                                                           F...
Profitability – FY 2005-06
                                                                                               ...
Margins – 2005-06
         Operating Margins
                                                   PBT Margins
              ...
Shareholder Value – 2005-06

               EPS (Rs.)                 Book Value (Rs.)            Return on Net worth (%)
...
Debtors Profile – FY 2005-06
                                                                                             ...
Manpower (FY 2005-06)
                                           (Numbers)
      • Net addition of 269 people in FY
      ...
CMC Standalone – FY 2005-06




                              17
Revenue – FY 2005-06
                                                             Operating Revenue

• Operating Revenue u...
Profitability – FY 2005-06
                                                                                               ...
Margins – 2005-06
         Operating Margins
                                       PBT Margins
10.00%                    ...
CMC Americas – FY 2005-06




                            21
CMCA Financial Performance – Q4 (FY 2005-06)

   ('000 $)                       Q4             Q3         Variation
      ...
CMC Americas Financial Performance – 2005-06

   ('000 $)                           Year Ended March
                     ...
CMC Shareholding Pattern




                           24
Shareholding Pattern

                                                                      31.03.2005
                   ...
Thank You

            26
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CMC_Analysts_Presentation_FY_06

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CMC_Analysts_Presentation_FY_06

  1. 1. Analysts Presentation Quarter Ended 31st March, 2006 Mumbai; 20th April, 2006 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. Financial Performance - Q4 (FY 06) 3
  4. 4. Revenue – FY 2005-06 (Q4) Operating Revenue (Rs crore) • Operating Revenue up 34% q-o-q and 300 278.0 26% y-o-y at Rs. 278 cr crore 250 220.3 compared with Rs. 207 crore in last 207.4 200 quarter and Rs. 220 crore in last year. 150 • Total Revenue up 32% q-o-q and 25% 100 y-o-y at Rs. 279 crore compared with 50 Rs. 212 crore in last quarter and Rs. FY 05 (Q4) FY 06 (Q4) FY 06 (Q3) Total Revenue 223 crore in last year. (Rs crore) 300 279.1 • Other income lower at Rs. 1.1 crore 250 223.2 compared with Rs. 4.7 crore in last 211.9 200 quarter and Rs. 3.0 crore in last year. 150 100 50 * Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas FY 05 (Q4) FY 06 (Q4) FY 06 (Q3) 4
  5. 5. Profitability – FY 2005-06 (Q4) Operating Profit PAT PBT (Rs crore) (Rs crore) (Rs crore) 20 20 15 12.08 16.6 14.29 9.94 15 13.2 15 10 12.1 10 10 5 5 5 0 FY 05 (Q4) FY 06 (Q4) FY 06 (Q3) 0 0 FY 05 (Q4) FY 06 (Q4) FY 06 (Q3) -5 FY 05 (Q4) FY 06 (Q4) FY 06 (Q3) -5 -5 -10 -10 -10 -15 -15 -14.08 -16.52 -13.0 -15 -20 -20 • Operating Profit (EBITDA before other income) up 37% q-o-q at Rs. 16.6 cr compared with Rs. 12.1 cr in last quarter; • Profit before tax up 8% q-o-q at Rs. 14.3 cr compared with Rs. 13.2 cr in last quarter; Other income declines from Rs. 4.7 cr to Rs. 1.1 cr. • Profit after tax declines 18% Rs. 9.9 cr compared with Rs. 12.1 cr in last quarter; Last quarter we carried certain previous period tax adjustments. • Manpower productivity improves 18% q-o-q. * Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas 5
  6. 6. Quarterly Performance – FY 2005-06 (Sequential) Customer Services Total Operating Revenue Systems Integration (Rs crore) (Rs crore) (Rs crore ) 180 300 25 23.8 278.0 158.6 160 250 20 18.5 140 207.4 121.3 201.4 200.5 16.3 16.2 120 112.7 200 106.2 15 100 150 80 10 60 100 40 5 50 20 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 International Edu & Trg. ITES (Rs crore) (Rs crore) (Rs crore) 80 14 12 74.5 11.1 70 11.6 12 63.5 10 10.4 56.9 9.9 60 10 52.0 7.6 8 50 8 40 6 6.3 5.3 4.6 6 30 4 4 20 2 2 10 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 * Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas 6
  7. 7. Financial Performance – FY 2005-06 7
  8. 8. Revenue – FY 2005-06 Operating Revenue • Operating Revenue up 9.9% at Rs. 887 cr (Rs crore) 900 887 compared with Rs. 807 cr in last year 880 860 • Total Revenue up 12.5% at Rs. 916 cr 840 compared with Rs. 814 cr in last year. 820 807 • Other income increased from Rs. 7 cr to Rs. 29 800 cr primarily on account of profit of Rs. 25 cr on 780 sale of properties. 760 FY 05 FY 06 • Shift in revenue mix;Services Revenue up 14%; Total Revenue equipment down 1%. (Rs crore) 940 916 920 • Revenue increased primarily on account of 900 68% increase in ITeS, 39% increase in E&T and 880 860 17% increase International Business. 840 814 • Share of international revenue increases from 820 800 26% to 28% of total operating revenue 780 760 * Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas FY 05 FY 06 8
  9. 9. Segmental Revenue - FY 2005-06 FY 06 FY05 73% 70% 27% 26% 3% 1% Growth 0.2% 17.0% 0.15% 7.4% 0.1% 0.05% 0% Domestic International * Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas 9
  10. 10. Segmental Revenue (incl. International) - FY 2005-06 FY06 FY05 Customer Services System Integration 32% ITES 63% 32% 58% Educational Training 3% Others 4% 2% 3% Growth 3% 0% 80% 64% 60% 36% 40% 13% 20% 4% 0% Customer Services Systems Integration ITES Education & Training * Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas 10
  11. 11. Segmental Revenue – FY 2005-06 FY06 FY05 3% 8% 9% 2% 4% 3% 59% 55% 27% 26% 3% 1% Growth 68% 80.00% 60.00% 39% 40.00% 17% 5% 20.00% 0% 0.00% -20.00% Customer System ITES Education & International Services Integration Training * Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas 11
  12. 12. Profitability – FY 2005-06 PAT Operating Profit PBT (Rs crore ) (Rs crore ) (Rs crore ) 60 60 70 66.00 48.54 50 49.79 60 50 41.32 50 40 40 40 34.72 30 30 24.80 30 20 20 20 10 10 10 0 0 0 FY 05 FY 06 FY 05 FY 06 FY 05 FY 06 • Operating Profit (EBITDA before other income) up 20% at Rs. 49.8 cr compared with Rs. 41.3 cr in last year; • Profit before tax up 90% at Rs. 66.0 cr compared with Rs. 34.7 cr in last year; Other income increase from Rs. 6.8 cr to Rs. 29.0 cr. • Profit after tax up 96% Rs. 48.5 crs. compared with Rs. 24.8 cr in last year; Average tax rate down from 29% to 26% * Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas 12
  13. 13. Margins – 2005-06 Operating Margins PBT Margins PAT Margin 10.00% 10.00% 10.00% 9.00% 9.00% 9.00% 8.00% 8.00% 8.00% 7.20% 7.00% 7.00% 7.00% 5.61% 6.00% 6.00% 5.12% 6.00% 5.30% 5.00% 5.00% 5.00% 4.26% 4.00% 4.00% 4.00% 3.05% 3.00% 3.00% 3.00% 2.00% 2.00% 2.00% 1.00% 1.00% 1.00% 0.00% 0.00% 0.00% FY 05 FY 06 FY 05 FY 06 FY 05 FY 06 (Operating margins are EBITDA before other income) * Consolidated numbers of CMC and its wholly owned subsidiary CMC Americas 13
  14. 14. Shareholder 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%) * Standalone for CMC 14
  15. 15. Debtors Profile – FY 2005-06 Debtors • Debtors level (after provisions) reduces to 30-60 days 9% 60-90 days Rs. 233 crs (103 days) from Rs. 248 crs 6% (117 days) during the year. 90-180 days • Of Rs. 233 crs, Rs. 133 crs (57%) less than 11% 0-30 days 30 days. 57% • Debtors over 6 month reduce from Rs. 52 crs (21%) to Rs. 39 crs (17%) >180 days 17% • Borrowings reduced to Rs. 67 crore from Debtors Level (No. of days ) Rs. 82 crs during the year. 140 117 120 104 103 100 92 87 80 60 40 20 0 5 6 5 05 5 '0 '0 '0 '0 e' ar ec t ar n ep M D Ju M * Standalone for CMC S 15
  16. 16. Manpower (FY 2005-06) (Numbers) • Net addition of 269 people in FY 4000 2006-07. 3577 3539 3431 • Continued Focus on building 3500 3289 capabilities and competencies 3000 especially in niche technology like embedded systems etc. and 2500 select domains. 2000 • Focus on improved manpower productivity through improved 1500 processed and tracking 1000 mechanism and Ultimatix. Q1 Q2 Q3 Q4 Productivity improved 18% in Q4. * Standalone for CMC 16
  17. 17. CMC Standalone – FY 2005-06 17
  18. 18. Revenue – FY 2005-06 Operating Revenue • Operating Revenue up 6.9% at Rs. 829 cr (Rs crore) 840 829 830 compared with Rs. Rs. 776 cr in last year 820 810 • Total Revenue up 9.6% at Rs. 858 cr 800 790 compared with Rs. 782 cr in last year. 776 780 770 • Other income increased from Rs. 7 cr to 760 750 Rs. 29 cr primarily on account of profit of 740 FY 05 FY 06 Rs. 25 cr on sale of properties. Total Revenue • Shift in revenue mix;Services Revenue up (Rs crore) 880 14%; equipment down 1%. 858 860 840 • Revenue increased primarily on account 820 of 68% increase in ITeS, 39% increase in 800 782 E&T and increase of 5% each in CS and 780 760 International Business. 740 FY 05 FY 06 18
  19. 19. Profitability – FY 2005-06 PAT PBT Operating Profit (Rs crore ) (Rs crore ) (Rs crore ) 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 (EBITDA before other income) up 12% at Rs. 44.1 cr compared with Rs. 39.5 cr in last year; • Profit before tax up 82% at Rs. 60.1 cr compared with Rs. 32.9 cr in last year; Other income increase from Rs. 6.8 cr to Rs. 29.0 cr. • Profit after tax up 91% Rs. 44.1 crs. compared with Rs. 23.1 cr in last year; Average tax rate down from 30% to 27% 19
  20. 20. Margins – 2005-06 Operating Margins PBT Margins 10.00% PAT Margin 8.00% 9.00% 7.00% 7.00% 6.00% 8.00% 5.14% 6.00% 7.00% 5.00% 6.00% 5.00% 5.31% 5.10% 4.00% 4.20% 5.00% 4.00% 2.95% 4.00% 3.00% 3.00% 3.00% 2.00% 2.00% 2.00% 1.00% 1.00% 1.00% 0.00% 0.00% 0.00% FY 05 FY 06 FY 05 FY 06 FY 05 FY 06 (Operating margins are EBITDA before other income) 20
  21. 21. CMC Americas – FY 2005-06 21
  22. 22. CMCA Financial Performance – Q4 (FY 2005-06) ('000 $) Q4 Q3 Variation 2006 2005 2006 q-o-q y-o-y Total Revenue 8,556 5,114 7,730 11% 67% Profit Before Tax 403 49 401 0% 722% Profit After Tax 317 49 290 9% 547% PBT Ratio 4.7% 1.0% 5.2% PAT Ratio 3.7% 1.0% 3.8% • CMC Americas continues to show improved performance both in revenue and profit terms with 11% sequential growth in Revenue and 9% sequential growth in Profits after Tax. Revenue and PAT growth is 67% and 547% respectively on y-o-y basis. • Revenue growth primarily driven by Embedded Systems and IT services • Strict control on expenses led to further expansion in margins 22
  23. 23. CMC Americas Financial Performance – 2005-06 ('000 $) Year Ended March 2006 2005 Variation Total Revenue 29,142 19,896 46% Profit Before Tax 1,334 394 239% Profit After Tax 1,004 388 159% PBT Ratio 4.6% 2.0% PAT Ratio 3.4% 2.0% • Revenue of CMC Americas higher by 46% at $ 29.1 mm compared with $ 19.9 mm last year; Growth driven by embedded systems and IT services in Americas • CMC Americas crosses one million mark in profitability with PAT of $1.004 mm an increase of 159% over $0.388 mm earned in the last year; Higher value add services and strict control over costs improved profitability. 23
  24. 24. CMC Shareholding Pattern 24
  25. 25. Shareholding Pattern 31.03.2005 31.03.2006 FIIs FIIs Mutual Funds 8.7% Mutual Funds 11.5% 15.3% 9.6% Banks/Fis/Insur Banks/Fis/Insur ance Cos. ance Cos. 14.6% 13.1% TCS Ltd. TCS Ltd. 51.1% 51.1% Others Others 11.8% 13.1% * Standalone for CMC 25
  26. 26. Thank You 26

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