CMC Ltd

The company  has posted a set of flat numbers for Q4FY13. Its consolidated total income rose 6% (QoQ) at Rs.524 crore. EBITDA was in fact down 1% at Rs.82 crore and margins also slipped from 16.8% to 15.6%. Net profit was flat at Rs.61.3 crore, up a mere 0.5%. In terms of segmental breakup, the giant slice of the revenue pie comes from systems integration but it was down 14% at Rs.272 crore. IT enabled services was also down 8% at Rs.69 crore and the only segment which showed a growth was customer service, which doubled from Rs.78 crore to Rs.156 crore.

Segmental EBITs show that IT enabled services EBIT fell 26% while that of systems integration fell 4.5%. Customer services EBIT was up 33%. For FY13, the performance was much better. Consolidated operating revenue grew 31%, EBITDA rose 42% and this was a 124 bps YoY expansion. Consolidated net profit for the year was up 52% and PAT Margin also showed a smart jump, up 170 bps. During the year, the company added 80 new clients. Its Fy13 has been very good though Q4 shows the pressure, which was felt by most of the IT companies. The market is not too enthused with the numbers as the stock price remains in the red. It has declared a dividend of Rs.17.50/share.