CMC net grows 25 per cent to over Rs179 crore; proposes 1:1 bonus issue

CMC limited has reported a 25 per cent increase in its net (after-tax) profit for the year ended 31 March 2011, at Rs179.41 crore against Rs143.23 crore in the previous year.

The board of directors of CMC Limited has proposed issue of bonus shares in the ratio of one share for every one share held. The company also announced a dividend of Rs20 per share for the year.

The company reported an operating revenue of Rs1,080.53 crore for the year ended 31 March 2011, an increase of 24 per cent over 2009-10. Operating profit (EBITDA) stood at Rs206.84 crore, an increase of 28 per cent over 2009-10. Operating margins increased by 57 basis points over the previous year.

CMC, which saw considerable growth during the year, added 80 clients during the year. The company also added 1,845 associates, taking its employee count to 7,396 as of 31 March 2011.

"We are very happy with the growth momentum, with all the SBUs performing better in both domestic and international markets. The company's first state-of-art SEZ unit at Hyderabad will become operational in April 2011, enhancing its capability to service international clients," said R Ramanan, CEO and MD.

"The company expanded its operating margins driven by the improvement in the business mix and cost management. Share of services business increased from 88.2 per cent to 90.5 per cent during the year.