CMC Q1 net slips over 9 pc on higher tax outgo
Tata Consultancy Services arm, CMC reported 9 percent decline in consolidated net profit at Rs 53.12 crore for the June quarter due to higher tax outgo, despite good growth across geographies and verticals and the rupee fall.
Tata Consultancy Services arm, CMC today reported an over 9 percent decline in consolidated net profit at Rs 53.12 crore for the June quarter on the back of higher tax outgo, despite good growth across geographies and verticals and the rupee fall.
The consolidated net profit stood at Rs 58.43 crore in the corresponding quarter last year.
"This quarter, we paid Rs 9.6 crore in taxes on the USD 10 million dividend we received from one of our subsidiaries," said CMC chief financial officer JK Gupta while announcing the first quarter earnings.
Gupta said the 10 percent fall in the rupee during the quarter helped the company net Rs 14.3 crore in revenues while net profit has been benefited to the tune of Rs 4.5
Total tax expense in the quarter stood at 27.81 crore compared to Rs 17.07 crore year ago. Total income from operations grew 7.59 percent to Rs 486.61 crore from Rs 452.28 crore in the April-June 2012 period.
"We continue to see good traction for our offerings across all business segments and geographies, despite challenging global business environment," Managing Director and Chief Executive R Ramanan said.
He said that the company maintained its quality of revenue as its revenues from value-added services and solutions grew 5 percent quarter-on-quarter and 7 percent year-on-year, helping maintain EBITDAs margins.
"We have seen growth across domestic and international markets," Ramanan said. However, on a sequential basis, the net profit dipped to Rs 61.33 crore, while income from operations was down to Rs 523.96 crore.