Bonus proposed by CMC while net profit declines
Tuesday, 19 April 2011, 18:11 IST
By SiliconIndia
By SiliconIndia
New Delhi: CMC, an IT company subsidiary of Tata Consultancy Services, have proposed bonus share in the ratio of one share for every share held, even though there has been a decrease in the fourth quarter net profit.
There has been a slight dip in the fourth quarter net profit which was Rs.43.96 crore in March quarter against Rs.44.3 crore in the previous year. This was added on to expenses for the staff which could result in high outcome by them. The staff cost and the outsourcing cost shot up to 31 percent and 42 percent , respectively, where it was applicable on selected projects or the work which was non repeatable in nature. The company hired employees over the year which came up to 7,396 professionals.
However, the Operating revenue of the company has increased by 24% over the last year, resulting in Rs. 1080.53 crore for the year end on 31st March, 2011. This was done with intentions of markets like U.S. and Europe would throw up their demands for digital and workflow management along with providing solutions in areas like transports, ports and cargo.
The Operating Margins were increased by 57 basis points over the previous year but did see a decrease to 17.3 percent in March quarter from 18.5 percent in December quarter.
The company increased cash and cash equivalent to Rs. 283 crore at the end of the year, after funding capital expenditure of Rs.100 crore from internal resources, says J K Gupta, Chief Financial Officer. He added that the company expanded its operating margins for the improvement of business mix and cost management.
There has been a slight dip in the fourth quarter net profit which was Rs.43.96 crore in March quarter against Rs.44.3 crore in the previous year. This was added on to expenses for the staff which could result in high outcome by them. The staff cost and the outsourcing cost shot up to 31 percent and 42 percent , respectively, where it was applicable on selected projects or the work which was non repeatable in nature. The company hired employees over the year which came up to 7,396 professionals.
However, the Operating revenue of the company has increased by 24% over the last year, resulting in Rs. 1080.53 crore for the year end on 31st March, 2011. This was done with intentions of markets like U.S. and Europe would throw up their demands for digital and workflow management along with providing solutions in areas like transports, ports and cargo.
The Operating Margins were increased by 57 basis points over the previous year but did see a decrease to 17.3 percent in March quarter from 18.5 percent in December quarter.
The company increased cash and cash equivalent to Rs. 283 crore at the end of the year, after funding capital expenditure of Rs.100 crore from internal resources, says J K Gupta, Chief Financial Officer. He added that the company expanded its operating margins for the improvement of business mix and cost management.
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