CMC Ltd, a Tata subsidiary, post 25% drop in net profits

CMC Ltd, a Tata subsidiary, post 25% drop in net profits

New Delhi : CMC Limited, a subsidiary of Tata Consultancy Services Limited (TCS) posted a 25% drop in its consolidated net profit due to increase in expenditure and tax expense at 34.9 crore during the three months ended 30 June against the same period last year. The company’s revenues during the period was at 305.6 crore, up 24.6% compared to the corresponding period. The company’s earning per share during the quarter was 11.51 against 15.33 in the same quarter last year. Systems integration contributed almost half of the company’s revenues at 170.5 crore. CMC has also appointed Sudhakar Rao, former chief secretary of Karnataka and ex- Director of PMO, as an Independent Director on the company’s board with effect from July 11, 2011. With the addition of Rao, the total strength of the Board of Directors of the Company has increased to seven which include four independent directors. The company’s stock closed at 1187.05, up 0.57% on the Bombay Stock Exchange.

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