Presentation to Analysts - CMC Limited

Presentation to Analysts 

Your IT Partner 

CMC Limited

isclaimers 

This presentation includes statements which may constitute forward-looking 

statements. These forward-looking statements include our financial and 

growth projections as well as statements concerning our plans, strategies, 

intentions and beliefs concerning our business and the markets in which we 

operate. These statements are based on information currently available to us, 

and we assume no obligation to update these statements as circumstances 

change. Although the company believes that the expectations contained in 

such forward-looking statements are reasonable, it can give no assurance that 

such expectations will prove correct. These are risks and uncertainties that 

could cause actual events to differ materially from these forward-looking 

statements. 

This document is being supplied solely for information and may not be 

reproduced, redistributed or passed on, directly or indirectly, to any other 

person or published, copied in whole or in part, for any purpose without the 

consent of the company in writing. 


genda 

. Company Overview and Strategy 

. Customer Services SBU 

. Systems Integration SBU 

. ITeS SBU 

. Education & Training SBU 

. HR Overview 

. Financials and Subsidiary Company Overview 


1. Company Overview and Strategy

ision Statement 

We shall operate globally and bring the benefit of Information Technology to continuously 

improve the productivity of our customers and quality of their products and services 

As a part of TATA group, we shall align ourselves with the TCS vision – Global Top 10 by 

2010 

We shall be a vibrant organization where openness, trust, team work, simplicity and 

innovations are valued and promoted 

CMC CMC Limited

MC - Pre Acquisition 

� Incorporation of 

Computer 

Maintenance 

Corporation Limited 

� CMC takes up the 

maintenance of 800 

IBM installations 

spread across India. 

Initiates training 

courses 

predominantly to 

clients 

� Aligns business focus 

along vertical markets 

like transportation, 

mining, power and 

banking 

� Sets up INDONET 

� Partial Divestment by 

GoI 

� Reorganises 

businesses into five 

strategic business 

units 

1975 1976 1978 1984 1986 1991 1992 1993 1995 2001 

� Commences 

operations 

� Diversifies activities 

to include “turnkey” 

projects, IT 

education, software 

development. 

Renamed CMC 

Limited 

� Acquires Baton 

Rouge International 

Inc. in USA – a step 

towards globalisation 

(renamed as CMC 

Americas, Inc. in 

2003) 

� Listing on Indian 

Bourses 

� Tata Sons Limited 

acquires 51% stake 

in CMC 


MC - Post Acquisition 

Significant focus on growth through value 

addition & synergies 

� Focus on international markets by leveraging 

CMC’s knowledge base and TCS’ international 

presence 

� Leverage on domain skills to provide IT centric 

solutions 

� Ports 

� Stock exchange 

� Banking 

� Adoption of TCS best practices 

350 

300 

250 

200 

150 

100 

50 

0 

Acquisition 

by TCS 

Apr-01 J ul-01 Oct-01 J an-02 Apr-02 J ul-02 Oct-02 J an-03 Apr-03 J ul-03 Oct-03 

CMC SENSEX 


verview of Company 

Systems 

Integration 

� Project 

implementation, 

integration & 

Maintenance of 

software products / 

solutions 

Government of India 

(“GoI”) 

Public shareholders 

26% 

23% 

CMC Strategic Business Units 

Customer 

Services 

� Hardware supply 

& support 

services, network 

design / 

implementation 

services 

Education & 

Training 

� Software and 

hardware training 

through 200 

centres to 

corporate and 

retail clientele 

51% 

Tata Sons 

ITES 

100% 

� Value added EDI 

network, Forms 

processing, Web 

design and 

hosting, data 

centre services 

CMC Americas, 

Inc. 

� International 

Services 


ganisation Chart 

Bhushan Mohan 

India – North 

Chinta Prakash 

India – South 

S Balakrishanan 

India – West 

A K Bhattacharya 

India – East 

Rajiv Mathur 

Americas 

G Venkatraman 

Europe 

Vinodh Lakshaman 

MEA 

C V Rammohan 

BFSI 

G Bhulokam 

Shipping 

Rathin Roy 

Insurance 

Bhushan Mohan 

Transportation 

K C Rehani 

E-governance 

A K Singh 

Mining 

S Ramadorai 

Chairman 

R Ramanan 

Managing Director & CEO 

Geography Industry Practice Strategic Business Unit 

Corporate Function 

SPS Mahindroo 

Defense 

A S Rajyadaksha 

Customer Services 

S Balakrishanan 

Systems Integration 

Saibal Ghosh 

Education & Training 

V Rajaraman 

ITES 

JK Gupta 

CFO 

S V Ramanan 

HR, Internal Systems, 

Planning & Quality 

Corporate Communications 

Chinta Prakash 

R&D 

Vivek Agarwal 

Company Secy. & Legal 


i Company Overview and Strategy - Business Model

usiness Model 

Technology Expertise 

Financial Services 

Banking, Insurance, 

Capital Markets 

Transport 

Railways, Ports, 

State Transport 

Vertical Domain Expertise 

Energy 

Oil & Gas, Electrical 

System Integration 

Industrial 

Mining etc. 

Software Products and Development 

Infrastructure Management 

Education & Training 

Matrix Structure to Provide Value Added Services to Clients 

Defense 

E-Governance 


iversified Business Mix (1) 

55% 

Growth 

80% 

60% 

40% 

20% 

0% 

-20% 

-40% 

-60% 

FY02 

3% 

15% 

4% 

9% 

14% 

6.8% 13.9% 

43.7% 

-49.4% 

55.7% 

Customer Services System Integration ITES Educational Training International 

(1) Standalone financials ; Year ending March 31 



ITES 

Educational Training 

International 

Others 

Growth driven by International business - effective leveraging of TCS 

54% 

FY03 

1% 

16% 

5% 

4% 

20% 


1 Financial Performance: Segmental Revenue(1) 

46% 

1) Standalone financials 

FY03 

20% 

1% 

4% 

6% 

23% 



ITES 


International 

Others 

FY04 

63% 2% 

2% 

11% 

5% 

17% 


trategic Business Units 

Services Offered 

Skills / 

Infrastructure 

System Integration Customer Services Education & Training ITES 

� Systems Consultancy 

� Software products and 

customized solution 

� Software maintenance 

� Turnkey Projects 

� Over 1000 trained 

professionals with expertise 

on different platforms 

� 100 people strong Real 

Time/Embedded Systems 

group 

� Experience on range of 

areas like –BFSI, Image 

processing & Biometrics, 

SCADA solutions, Real 

Time/embedded systems, 

e-Commerce, e- 

Governance, Mobile 

Computing, Multimedia, 

Large scale Database 

Solutions 

� Third party maintenance of 

hardware and software 

� Equipment Supply and 

Integration 

� Networking Services and 

Consultancy 

� Environmental Engineering 

and Facilities Management 

� Developed a range of 

products 

�Electronic 

communications, 

networking, message 

handling systems, 

DGPS based vehicle 

tracking system etc. 

� Present in over 150 

resident services locations 

and over 500 non-resident 

service locations 

� The only company 

worldwide to support 40 

different manufacturers like 

IBM, HP, Compaq, Sun, 

Silicon Graphics, CISCO, 

Entrasys 

� Expertise in IVR solutions, 

Credit Card Authorisation 

services, Internet / Intranet 

services, Smart Cards and 

POS terminals 

� Entry level courses 

� Professional Development 

courses 

� Vendor certified courses 

� Customised courses for 

specific training needs of 

companies 

� Career Development 

courses 

� Degree Corses 

� 200 training centers 

catering to 25,000 students 

every year 

�6 owned centres 

located in Ahmedabad, 

Bangalore, Calcutta, 

Chennai, Hyderabad, 

Mumbai, New Delhi, 

Pune, Vishakapatnam 

�15 in association with 

leading educational 

institutions like RECs, 

Jadavpur University, 

IMT Ghaziabad & 

Calcutta, Engg. Staff 

College of India 

�Approx. 180 franchisee 

centres spread over the 

country 

� Corporate Intranet 

� Network management, 

Managed Data Network 

Services, Help Desk 

� EDI 

� Database services 

� Web design & hosting 

� Forms Processing 

� Data Centre Services 

� Over 70 trained people 

� Supports TCP/IP and X25 

protocols 

� 64 kbps leased links 

connections across 9 cities 

- Delhi, Mumbai, Calcutta, 

Chennai, Bangalore, 

Hyderabad, Ahmedabad, 

Pune, Vizag 

� Redundant data links at 

each location ensure higher 

reliability & uptime 


nternational Operations 

CMC provides end-to-end IT solutions to international clients through its international operations and CMC 

Americas 

Services Offered Skills & Infrastructure 

� Custom software design and 

development 

� IT, e-business process consulting 

� Turnkey project design, implementation 

and management in a variety of 

industries 

� IS / IT outsourcing 

� IS / IT staffing 

� Around 700 professionals working on 

international projects 

� Relationships with leading US 

Companies predominantly through 

staffing services 

� 10 offices in the USA, one each in the 

UK and Dubai 


ii. Company Overview and Strategy - Key Differentiators

ey Differentiators 

Sizeable Resource Pool 

Well Recognised R&D 

capabilities 

Strong Growth in Key 

Segments 

Sales and support reach 

in the domestic market 

Wide range of service 

offerings & domain 

expertise 

Strong client base 

Large project execution 

capability 


Strong Growth Projected in Key Segments 

(Rs. Cr) 

60,000 

50,000 

40,000 

30,000 

20,000 

10,000 

0 

Total Rs.17,002 Cr 

2,897 

2,947 

1,620 

1,234 

2,070 

6,234 

CAGR = 16.6% 

13.9% 

5.4% 

30.5% 

7.2% 

22.3% 

15.9% 


3,393 

6,546 

1,996 

2,257 

3,055 

9,705 


Domestic IT market has recorded strong growth in the past and is expected to grow similar rates 

in the medium term as well 

4,975 

13,865 

4,499 

4,053 

4,838 

23,695 

FY00 FY03 FY07E 

Systems Peripherals Networking Packaged Software Domestic Services Others 

Source: Dataquest for the period FY00 - FY03 and IDC for FY07E 

Domestic IT Market 

CAGR = 20.0% 

10.0% 

20.6% 

25.0% 

22.5% 

15.8% 

12.2% 


vices 

ide Range of Service Offerings & Domain Expertise 

meworks/ 

tware 

ets 

Banking & Finance 

� TC/4 Retail 

Banking 

System 

� VECTOR - 

Stock 

Exchange 

System for 

Online Trading 

� VEDAS - 

Depository 

Solutions 

� DIGIPURSE 

Insurance 

� GENISYS - 

Branch and 

division 

automation 

� Interactive 

Voice 

Response 

Systems 


Customer Services and System Integration 

� Container 

Handling 

Systems 

� Cargo 

Management 

Systems 

� Railway 

Reservations 

� Freight 

Management 

� Hardware 

solutions 

� ARTS 

� CUPS 

Power 

� OSKER - 

SCADA based 

energy and 

power 

solutions 

� Load Dispatch 

� Distribution 


� Sub Station 


� Demand side 

management 

CMC has a vast depository of ready packages and software 

Mining 

� NIRDESHAK - 

GPS based 

vehicles 

tracking 

system 

� CRYSTAL - 

Mine planning 

package 

� ERP for mines 

Defense 

� Air defense 

handling 

systems 

� Radar data 

processing 

systems 

� Airfield lighting 

and control 

systems 

� Embedded 

software 

systems 

Criminology 

� FACTS - 

Completely 

automated 

fingerprint 

identification 

and retrieval 

solution 

E-Governance 

� VISTA/VOICE 

� Healthcare 

solutions 

� Treasury 

management 

� Networking 


arge Project Execution Capability – Indian Railways 

Background 

Over than 10 mm passengers a day 

Over 250,000 freight wagons & 7000 

locomotives 

Over 6,000 passenger trains everyday 

Over 8,000 railway stations 

15 Zones and 68 divisions 

Over 20,000 stock items at 200 depots 

Project Objectives 

Design and develop a complete software 

solution to implement an integrated multipassenger 

reservation system (IMPRESS) 

Freight Management (FOIS) 

Ticketing of Unreserved passengers (ARTS) 

Materials Management (MMIS) 

Key Challenges 

� IMPRESS 

� Change management from manual to 

computerized reservation and ticketing 

� Proliferation of system to remote locations 

� Creating a robust passenger reservation 

system with > 99.5% uptime 

� FOIS 

� Implementation at over 80 districts with 

over 2000 users 

� >99.5% uptime 

� Setting up all India Communication 

network 

� ARTS 

� Rugged hardware with embedded 

software to meet stringent data security 

requirement 

� MMIS 

� Robust online system to integrate 5 

functional modules 

� Replicate data from remote places 

Key Achievements 

� Delivery of very large engagement on turnkey 

basis in short time frame. 

� Scalable, maintainable, extendable, secure and 

reliable solution: Open architecture 

� Development of state-of-the-art solution: Multi 

technology platforms, more than 3000 

subroutines and 800000 lines of computer code 

� FOIS - Enhanced functionality covering goods 

sheds and wagon reporting with 3 tier 

application software using Oracle and Tuxedo 

Middelware 

� Arts - Universal ticketing counters 

� MMIS - Handling 10000 complex material 

transactions per day, more than 1000 forms, 

2000 reports and 500 queries 

� MMIS - Developed Work Flow system 

management unique to Indian railways 

We have track record in executing large, multi-location projects on time and at high quality 

standards 


trong Sales and Support Reach within Domestic Market 

1 Employee numbers as on November 30, 2003 

Jaipur 

Ahmedabad 

Vadodara 

Mumbai Pune 

Chandigarh 

New Delhi 

Bangalore 

Lucknow 

Hyderabad 

Chennai 

Regional Offices 

Corporate Office 

Branch Offices 

R&D Centre 

Calcutta 

Visakhapatnam 

Well established sales and services network across the country 

Strength of Sales & Marketing team – over 200 employees 


ell Recognized R&D Capabilities 

Vision –To develop comercially viable, high quality IT products and services using state-of-art technology to 

contribute to CMC’s long and medium term business goals. Key activities include : 

� Development of products 

� Development of technology to support business activities of SBUs 

With over 200 employees CMC’s R&D division forms the nucleus of CMC’s product development 

Key 

Technology 

Groups 

Areas of 

Specialization 

� Real-Time Systems Group 

� Embedded Systems Group 

� Pervasive Computing Group 

� Image processing and pattern recognition 

� Pervasive computing 

� Process Control 

� Networking and communications 

� Object oriented methodologies 

� Real time embedded systems 

� Internet security and e-commerce 


izeable Resource Pool 

Employee strength as of 30th November, 2003 - 3,074 

Experience-wise Break-up of Employees Qualification-wise Break-up of Employees 

to 10 yrs 

26% 

10 to 15 

yrs 

8% 

>15 yrs 

16% 

2 to 5 yrs 

35% 

< 2 yrs 

15% 

50% of Regular employees have more than 5 

years of experience. This pool serves as a 

resource for CMC’s complex project management 

capabilities 

Graduates 

59% 

Diplomas 

12% Others 

2% 

Post 

Gradua 

& 

Profess 

als 

27% 

Large resource pool of trained engineers in 

diverse technologies with varied skill sets helps 

in end-to-end service delivery 


iii Company Overview and Strategy - Strategy

ndustry Growth Drivers 

Increased investments by financial institutions and banks in upgrading IT infrastructure 

Increased investment in IT by central & state governments 

� e-governance initiatives: AP, Karnataka, Tamil Nadu 

� Automation initiatives: revenue & land records 

On-going reform & restructuring in power sector with increased use of IT 

Investments by Indian Corporates in IT to enhance competitiveness 

Leverage Domain expertise for International projects 


MC Strategy 

Value added services 

Leverage domain expertise 

Leverage Group synergies 

Focus on quality and internal efficiencies 

Focus on international market 

Customer focused R&D 


MC Strategy 

Value Added 

Services 

Leverage Domain 

Expertise 

Leverage Group 

Synergies 

� Integrated end-to-end solutions 

� Focus on large complex projects with multiple SBUs 

� Strategic partnerships with 

� Large customers 

� Vendors 

� Academic institutions 

� Transportation - rail, road and shipping 

� Banking, Financial institutions and Insurance 

� Power and Mining sector 

� Biometric security 

� Joint bidding for large domestic projects 

� Leverage marketing network for international business 


Transportation - Rail, Road and Shipping - Our Service Offering 

Railways 

� Design and develop a complete software solution to implement an integrated multi-passenger reservation system (IMPRESS) 

� Freight Management (FOIS) 

� Ticketing of Unreserved passengers (ARTS) 

� Materials Management (MMIS) 

Shipping 

� Products 

� MACH (MArine Container Handling System) - for container terminals 

� CALM (CArgo Logistics Management System) catering to Bulk, Break-bulk & Ro-Ro operations 

� WARM (WARehouse Management System) 

� SWIM (SoftWare for Intelligent Messaging System) - An EDI engine 

� Services 

� IT Consultancy Services, Professional Services, Training, Project Management Services, Software Implementation 

Services, Migration Services, System Integration, On-site Support Services, Remote support services 

NIRDESHAK – DGPS based Vehicle Tracking System 

ARTS / POS – Ticketing Solutions 


anking - Our Current Offerings 

Core banking – TC/4 – Retail, Treasury, Trade Finance, Risk Management 

e-banking products - Gate-e-way, e-cheque, Credit card, WISeBank, I-Cert, Cheque Truncation 

Branch banking – BRAINS 2000 

Coop banks - B2K & COINS 

Home Loan System 

Payroll & HRMS 

DpSecure 

Services – Networking, Infrastructure development, Hardware supply and maintenance, Facilities 

management 

Education and Training 

Authentication service 

Event Notification Service 


ecurities – Our Offering Suites 

Back-Office Mints DpSecure 

Interfaces MULTEX ITS 

Stock Exchange BOLT VECTOR DTSS eVECTOR GILT BBS 

Commodities Exchange DTSS 

Clearing & Settlement VSTAR 

Depositories VeDAS 

DTSS 


nsurance – Our Service Offerings 

Product / Solution development for existing clients 

Research and development covers Business requirements & new technology 

Maintenance and Technical Support to clients 

Product Upgrade and Version Management 

Regular in house training programs 

Proactive market development through 

� Interactions/ presentations/ demonstrations 

� Participation in seminars/ conferences 

Products 

� GENISYS (General Insurance Systems), GENISYS Enterprise, GENISYS Configurator 

� PROMPT (Call Registration & Management S/W) 

� InFAcS (Integrated Financial Accounting System) 


iometric Security 

Finger Print Analysis & Criminal Tracing System (FACTS) is the CMC Flag ship product in the area 

of Biometrics. Activity Scope includes providing Fingerprint based person identification solutions to : 

� Law Enforcement Segment 

� Civilian Segments 

Product line includes ; 

� FACTS Central: High-end full fledged AFIS 

� FACTS Finder: Scaled-down AFIS on a desktop 

� FACTS Remote Query Terminal: Limited featured AFIS on a desktop 

� Criminal Attribute Database: Criminal non fingerprint Attribute database 


MC Strategy 

Focus on Quality 

& Internal 

Efficiencies 

Focus on 

International 

Markets and 

Indian pvt sector 


Focussed R&D 

� Quality & excellence initiatives: CMM, CMMI, TBEM 

� Certification drive: ITIL, CCIE, CCNA 

� Marketing excellence: Mark@cmc 

� Improving manpower utilization 

� Improving reach: Dubai office 

� Geography focus: developing strategy for - CIS, Ibero America, Middle east 

� Leveraging domestic project experience for private sector and international markets 

� Smart card 

� SCADA / Metering solution 

� Finger printing for civilian applications 

� GPS / GIS 


SCADA 

Products 

� OSKER - Unix based SCADA Product 

� Winspire – Windows based SCADA Product 

� SETSS - RDSO approved Standard Electric Traction Scada Software 

� Distribution Management System(DMS) and Energy Management System(EMS) for better monitoring, 

analysis, operations and coordination of power distribution network and power transmission network 

Key Focus Areas 

� Power - Generation, Transmission, Distribution 

� Oil & Pipeline 

� Transportation 

� Process Automation 

A TATA Enterprise 


MC - SWOT 

Strengths 

� Business model, combines both Hardware maintenance, IT services & IP portfolio for international and 

domestic markets 

� Successful transition from hardware maintenance provider to a solution provider of full cycle complex projects 

� Multi-faceted experience 

� Leverage on domain skills to provide IT-centric solutions 

� Largest third party maintenance company in India 

� Repository of ready packages/software that can be replicated 

� Large client base, serviced over the years, that can be efficiently leveraged for greater wallet share through 

cross-selling 

� Trusted and Respected brand – Combination of ethics & culture of the TATA group and positive PSU legacy 

Opportunities 

� Growth through value addition and synergies 

� Surging domestic IT demand 

� Potential for leveraging domestic skills in international market and with private sector clients 

� Leveraging product suites in various projects 

� Platfom to launch and bid for large end-to-end IT services/infrastructure management projects, jointly with 

TCS 


MC - SWOT 

Weaknesses 

� Revenues mainly from price-sensitive domestic business 

� High exposure to government entities (Railways, Ports, Defence, Customs) 

� End-user industries and complex nature of projects lead to long sales cycles 

� Pressure on employee costs 

� CS/SI businesses witnessing emerging models with higher capital intensity 

Threats 

� Global IT companies entering Indian market expected to intensify competition 

� Revenues dependent on IT spending budgets 


ey Differentiators - Summary 

Sizeable Resource Pool 

Well Recognised R&D 

capabilities 

Strong Growth in Key 

Segments 

Sales and support reach 

in the domestic market 

Wide range of service 

offerings & domain 

expertise 

Strong client base 

Large project execution 

capability 


2. Customer Services SBU

verview 

2002-03 revenues from Customer Services (CS) – Rs. 336.10 crs, CAGR for the last 5 years- 

17% 

H1 revenues from CS – Rs.216.07 crs 

Service offerings 

� Facility Management - Help Desk Management 

� Desktop Management - Server Management - Network Management 

Security - N/w Security, Audit 

Storage – SAN, NAS 

Building Management System – Video conferencing, Access control, AV system 


fferings of CS SBU 

Hardware Support 

� Sizing/Configuration/Specking 

� EQS 

� ICW Services 

Networking 

� Design 

� Topology 

� Implementation 

� Support/NOC 

� N/W Audit 


arket analysis 

Govt. Dominated market 

� Slow decision-making process 

Sluggish growth in Govt. Sector 

Competiton from local PC manufacturers 

Emergence of new competition 

Non-Conventional payment models - e.g. Lease, BOOT, Rental 

ASP model 

Pricing pressure - depleting margins 

Contd. 


echnology trends 

Technology 

� High multiplier effect on CMC’s share in total business segment growth 

� Embedded systems 

� Remote Infrastructure Management System(RIMS) 

� BPO/IT Outsourcing 

� Network Operating Centre (NOC) 


MC’s Value Proposition 

Technology strengths Business strengths 

� Multi vendor support 

� Geographical spread 

� Highly skilled manpower 

� One point support to customers, including 

EES 

� Regular training and certificationprograms 

� Tie-ups with industry leaders 

� IP Telephony 

� Wireless LAN 

� Security/VPN 

� Storage solutions 

� Video conferencing 

� 18 major offices 

� 180 service locations 

� 520 non-resident locations 

� Accreditations 

� Cisco - Silver partner 

� Microsoft - GOLD and MAPS 

� Sun - SCFE 

� IBM - ASP 

� Tie-up with industry leaders 

� IBM, HP, Cisco, Enterasys, Sun, 

Silicon graphics, Stratus, CA, 

Microsoft, Oracle etc. 

Service strengths Global strengths 


ocess driven 

ITIL service management processes 

24x7 call despatch center at all CMC offices 

Stores, spares available at each CMC office and at major customer locations 

Escalation procedure 


ervice Network 

Chandigarh 

New Delhi 

Lucknow 

Jaipur 

Ahmedabad 

Nagpur 

Mumbai 

Pune 

Visakhapatnam 

Hyderabad 

Bangalore 

Chennai 

Calcutta 


trategy 

Value Added Services 

� Integrated end-to-end solution 

� Focus on large complex projects with other SBUs 

� Strategic partnership with large customer/ OEMs 

� High-end value added jobs 

Leveraging Domain Expertise 

� Transportation – GIS/GPS 

� Mining/ Power - RTS/SCADA/GIS 

� Biometric security 

Contd. 


trategy 

Leveraging partner’s strength 

� OEMs, Group companies 

International Marketing 

Franchising low `value-added’ business 

Targeting private corporates 

Disaster recovery solutions 

Focus on quality & internal processes 

� TBEM, CMMI, OLPICS 

Diversification 

Certification -ITIL, CCIE 


3. Systems Integration SBU

verview 

2002-03 Revenues from Systems Integration(SI) – Rs.9634 lacs, CAGR for the last 5 years-19% 

H1 Revenues from SI – Rs.3810 lacs 

Systems Consultancy 

� Requirement Analysis 

� Specifications Analysis 

� Design and Integration 

� Solutioning 

� Software Audits 

� Security Audits 

Service Offerings 

Systems Development 

� Program/Project Management 

� Software Development 

� Integration 

� Deployment 

� Support and Maintenance 

� Training 

� Onshore and Offsite Projects 

Product Development 

� Target Markets 

� Product Specifications 

� Product Core Groups (IP) 

� Development and Upgrades 

� Deployment, Support, Maintenance 


arket Requirements 

Current Market Requirements 

� Ready to deliver products 

� Integrated end-to-end solutions 

� Speedy delivery and geographically spread implementations 

� Price sensitive 

� State-of-the-art, N -Tier, WEB enabled, WAP Based, Latest version 

� Growing interest in E-commerce based applications 

� Enhanced support and maintenance 

� IT enabled services 


arket Analysis - Domestic 

The Domestic Market Opportunities 

� Government 

� N Tier Solutions, E-Security, E-payments, Wide area networks 

Potential of Re-engineering legacy systems as well as new prospects 

� Private Sector 

� Large ERP based solutions 

� Packaged solutions (COTS) 

Provide Implementation and Maintenance Support for Packaged Products 


arket Analysis 

The International Market Opportunities 

� Products & Solutions Market 

� MEA, East Europe, Some of the APAC countries 

– Banking 

– Securities 

– Biometrics 

– Transport 

Potential of Re-engineering legacy systems 

� Professional Services 

� Offshore and Onsite 

� US, Western Europe 

– Various Domains e.g.. Power, control systems, e-Gov applications 

– Technologies such as RDBMS, DWH, Unix, C, C++, VB, VC++ etc, N Tier 


ur Market Differentiators 

Large product portfolio 

Proven domain expertise 

Leader in domestic SI business 

Major share in domestic market 

Nation-wide service and support network 

Excellent track record of large turnkey projects 

Perceived by the market as the organisation having 

� Reliability 

� Responsiveness 

� capabilities to be a long term partner 


ertical Industry Practices 

Frameworks/ 

Software 

Assets 

Banking & Finance 

� TC/4 Retail 

Banking 

System 

� VECTOR - 

Stock 

Exchange 

System for 

Online Trading 

� VEDAS - 

Depository 

Solutions 

� DIGIPURSE 

Insurance 

� GENISYS - 

Branch and 

division 


� Interactive 

Voice 

Response 

Systems 


� Container 

Handling 

Systems 

� Cargo 

Management 

Systems 

� Railway 

Reservations 

� Freight 

Management 

� Hardware 

solutions 

� ARTS 

� CUPS 

CMC has a vast depository of easily customisable packages and software 

Power 

� OSKER - 

SCADA based 

energy and 

power 

solutions 

� Load Dispatch 

� Distribution 


� Sub Station 


� Demand side 

management 

Mining 

� NIRDESHAK - 

GPS based 

vehicles 

tracking 

system 

� CRYSTAL - 

Mine planning 

package 

� ERP for mines 

Defense 

� Air defense 

handling 

systems 

� Radar data 

processing 

systems 

� Airfield lighting 

and control 

systems 

� Embedded 

software 

systems 

Criminology 

� FACTS - 

Completely 

automated 

fingerprint 

identification 

and retrieval 

solution 

� Police Station 

Computerisation 

E-Governance 

� VISTA/VOICE 

� Healthcare 

solutions 

� Treasury 

management 

� Networking 

� CM Info System 

� Commercial 

Taxes 


omain Expertise & Market Share 

Niche Verticals 

� Securities, Stock Exchanges 

� Insurance 

� Fingerprint Technology 

� Defense 

� E-Governance 

� Domestic Market Position 

� Dominant 

� Dominant 

� Market Leader 

� Major Key projects 

� Major Player 


elivery Strategy 

Delivery Strategy and Processes 

Type 

TurnKey 

Own Products 

Third party products 

One time delivery of third 

party products 

Services 

Training 

System Integrator Role Industry Practice Role 

Implementation and PM Sizing, Customisation, Product delivery, Pilot 

Implementation 

Implementation and PM Customisation, Delivery, Pilot Implementation 

Implementation and PM Identification, Relationship management with the 

third party 

Delivery and Implementation Relationship management with the third party 

Delivery, Implementation and support Customer relationship 

Delivery and Support Identification, Relationship management 


everaging the Domain 

Securities – Various stock exchanges 

Fingerprint System – Criminal and Civilian applications 

Defense - Embedded Systems, Real Time Systems, High end SW development, Simulation 

Power - Distribution Automation, SCADA, Energy Management, Utility Billing 

Transportation - Passenger Reservation, Freight Management, Ticketing Systems, POS, Marine 

Container Handling, Cargo management 

E-Governance - RDBMS, 3 Tier applications, large systems integration, Delivery platforms, 

common application groups 


oject Delivery Strategy 

Skills Upgradation strategy 

� Domain Skills 

– Tie-up with Partners - Oracle, MS 

– Empanel Domain Consultants 

– Participating in Seminars/ Workshops etc. 

� Technology Skills 

– Keeping track of emerging technology trends and 

– Identifying training needs 

– Encourage to achieve technology certification 

– Sustain specialist groups in application area 

– Build System and Application architecture groups 


oject Delivery Strategy 

Quality/ Productivity improvement strategy 

� CMM KPAs in place 

� Metrics collection in Practice 

� All delivery centres at level 5 by 2 nd Quarter 2004-05 

Relationship/ Account Management strategy 

� Identifying Accounts to be managed by IP or SI Champions 

� Placing Delivery Personnel in the regions to own all delivery responsibilities 


elivery Process 

Delivery Teams 

� Technology Based teams 

� Delivery Head - Project Manager 

� Continuous customer interactions through reviews 

� Project Monitoring Tools 

� Customer feedback/complaints system 

� Compliant redressal 

� Support and Maintenance strategy 

� Release management 

� Configuration Management 


ajor Strengths - Recap 

Large product base 

Fast delivery and implementation 

Continuous technology upgradation 

Leading edge technologies 

Global Exposure 

Leverage Product based solutions 


ey Challenges for CMC 

Competition from smaller companies 

Shortened project life cycles 

Increased Demand for COTS 

Pressure on margins 

Global majors in domestic market 


ur current value proposition 

Long term trusted partner 

� CMC is always willing to travel that extra mile to ensure the success of the project and to partner with the 

customer through his business cycle 

CMC offers win win solution to its customers based on long term customer\retention 

strategy 


4. ITeS SBU

verview 

2002-03 Revenue 3100 Lacs, CAGR 45% for the last 3 years 

H1 Revenues from ITeS – Rs. 1747 lacs 

Significant domestic presence in the forms processing market 

Leading supplier for Election Commission of India 

Have set up over 15 corporate web sites which could be expanded to provide composite 

services 

Have a largely satisfied customer base 

Executing the largest ICR project in the country 


MC’s service offerings leverage on its strengths 

INDONET - Data Center & Business Continuity Services 

INDOCZ - Document Management Services 

INDUCTZ - Examination / Recruitment Services 

INDORZ - Facilities Management Services 

INDITEZ - Web Design and Hosting Services 

INDIVIZ - Smartcard & Biometric Security Solutions 


MC’s Target Markets 

DOMESTIC 

� Expanding forms processing market 

� Expanding cards preparation business 

� Consolidation of business in web hosting/ portals/ ISP sectors 

� EDI in core sectors yet to take off 

� Data storage/ Archival/ Warehousing yet to take off 

� IT Enabled Services 

� Call Centres operational 

� Niche markets exist 


arget Markets 

INTERNATIONAL 

� Management of Data Centres 

� Call Centres for Mfg./ Banking/ Insurance Industries 

� Web design/ development/ hosting Services 

� Professional Services 

� Data migration 

� Digitizing , Archival and Retrieval Services 

� BPO for HR, SCM , Sales automation 


arket Segments – Key 

Judiciary 

Central and State Govt. Departments 

Banks, Finance,Insurance and Securites 

Licensing / Registration Depts. – Land Records , Ration Cards, Election Commission, RTO, 

Toll, etc.) 

Educational Institutes 


arket Segments – target for the near term 

Publishing Houses, Libraries 

Transport 

Manufacturing 

Oil Companies 

Telecom Companies 

Power 

Services 


Analysis of the market and CMC’s offering 


he global ITES and BPO industries are growing at a rapid pace 

World-wide ITES market breakout by process area 

World-wide BPO market (Total US$ 208 bn) 

breakout by Process Area 1999 

Finance & 

Accou n tin g 

6% 

Adminis tration 

4% 

Sales/Mktg./ 

Customer Care 

5% 

Payment 

Services 

HR 8% 

13% 

Source: Gartner Dataquest 

Distribution/ 

Logistics 

15% 

World-wide ITES market breakout by geography 

World-wide BPO market (Total US$ 208 bn) 

breakout by Geography 1999 

Canada 

4% 

Asia/Pacific 

5% 

Europe 

32% 

Japan 

4% 

Source: Gartner Dataquest 

La tin Am e ric a 

2% 

Rest of the 

Wo rld 

1% 

Mfg. 

Services 

49% 

United States 

52% 

World-wide BPO market (Total US$543bn) 

breakout by Process Area 2004 

Finance & 

Accounting 

7% 

Ad min is tration 

4% 

S ales /Mktg ./ 

Customer Care 

5% 

World-wide BPO market (Total US$543bn) `breakout by 

Process Area 2004 

Latin America 

Japan 

2% 

Rest of the 

3% 

Canada 

4% 

World 

1% 

Asia/Pacific 

5% 

Europe 

31% 

HR 

14% 

Payment 

Services 

9% 

Distribution/ 

Logis tics 

15% 

Mfg. 

Services 

44% 

United States 

54% 


owth drivers for the ITES industry 

30.1% 

Focus on Cost Reduction 

24.3% 

Focus on Understanding the Company's Business 

20.4% 

Don't Overpromise 

17.5% 

16.5% 

15.5% 

Focus on Service Quality 

Clearly Communicate with Client 

During Deliver Provide Good & Responsive 

Customer Service 

11.7% 

8.7% 

7.8% 

7.8% 

6.8% 

6.8% 

3.9% 

% of Respondents 

Have Proven References 

Be Flexible 

Add value to the Client's Business 

The singlemost important 

reason however, seems to 

emanate from the cost 

advantages of outsourcing 

Deliver on time 

Be a Strategic Player 

Display Technological Leadership 

Be Financially stable 

35% 

0% 

Cost reduction 

• Savings on manpower and 

training costs 

• Reduced operating costs 

• Reduced overheads 

• Avoidance of cost of chasing 

technology 

Strategic Benefits 

• Reduction in risk of technological obsolescence 

• Reduction in overall management burden while 

retaining control of strategic decision making 

• Keep pace with changing standards 

Drivers to 

Ousourcing 

Attention on core activities 

• Improved efficiency 

• Avoidance of capex on noncore 

activities 

• Increased customer 

satisfaction 

Skill expertise benefits 

• Improved speed of service 

• Leveraging provides 

investments in technology, 

methodology and people 

• Providers expertise derived 

from standardisation 

• Access to best practices and 

proven methodologies 


he Indian market has shown significant growth in various segments 

Indian performance 2000-01 US$ mn 

1999-00 2000-01 Growth 2007-08F 

CAGR 

(2001-08F) 

Customer interaction 92 184 112% 4,198 57.1% 

Backoffice / HR / Accounting / 

Finance / Data entry 

218 293 42% 4,407 48.0% 

Content development / Animation / 

Engineering Division 

188 347 95% 5,247 48.1% 

Market Research / Remote 

Education / Consultancy 

25 30 27% 2,309 86.5% 

Transcription, Translation 28 35 33% 840 58.4% 

Total 550 890 62% 17,000 47.0% 

Source: Nasscom 

Indian firms are graduating from IT-enabled services (part subcontracting by a BPO vendor or outsourcing of 

activities as opposed to a function) to building BPO capabilities 

Share of global wallet is still meager at 0.5% by value (source : IDC) 


ompetitor Analysis 

Many competitors are CMC’s vendors 

Price advantage due to lower overheads 

Smaller outfits 

� Quicker to react on investments 

� Have fragmented market share 


MC Value Proposition 

In the process of acquiring 

CMM level 5 

certification 

Strategic Alliance with Major 

SW/HW 

Networking Vendors 

R&D (Tools, 

Methodology) 

Providing these Services 

for over 25 years 

TCS support 

Why 

CMC ? 

Well versed with 24x7 

operational support 

Large Number of 

Success Stories 

Certified 

Professionals 

Proven Competency in 

supporting Clients using the 

OnSite - Offshore Model 

Working hand in hand 

with Fortune 500 

Companies 


n-house Infrastructure 

Competency centers at Delhi, Mumbai, Kolkata, Chennai, Bangalore and Hyderabad 

Amtrix EDI engine and robust examination processing & election roll management sw 

Reliable IP based Indonet network 

24 x 7 Data centers at all metros 


uperior Service Delivery Framework 

Quality 

Assurance 

People 

Excellence 

Process 

Excellence 

Best Practices 

Strategic 

Planning 

Technology 

Excellence 

Operational 

Excellence 

MSQ 

MSQ 

MSQ 

Performance 

Measurement 


Satisfaction Survey 

Customer feedback 


Satisfaction 

Enhance Business Value through Continuous Improvement 


elivery Capabilities 

CMC aligns all its IT infrastructure Management activities in line with the processes as 

specified in the IT Infrastructure Library 

Follows best practices in IT Service Management 

� Change Management 

� Configuration Management 

� Problem Management 

� Release Management 


ur Strategic Partners 

NEWGEN & Fortune Informatics - Document Management and work flow solutions 

Top Image Systems, Israel - ICR / OCR imaging solutions 

Inspira Sw - Asset and Infrastructure Management 

DPS Technologies - CAD / CAE / GIS Solutions 

Newtec, Belgium - 2 way satellite based digital video broadcast Solutions 

TISL - Datacenter mangement 

Tata Net - Satellite based IP network 

Datastrip, UK - card based identity solutions 


nternational Market Strategy 

Leverage TCS presence in the worldwide marketplace and position ITES as a cost effective 

offshore outsource facility 

Replicate our success in key customer 


ow would our Value Proposition be different / superior? 

TCS partner leverage 

TATA brand name 

Nationwide Operation 

End-to-End Solutions 

Cost effective Services 

Customer Satisfaction/ Retention 


5. Education & Training Overview

verview 

2002-03 Revenues from Education & Training (E&T) – Rs.2481 lacs, CAGR for the last 5 

years-(7%) 

H1 Revenues from Education & Training (E&T) – Rs.797 lacs 

Activities 

� Franchisee Business 

� Non Franchisee Business 

� Centre of Education Technology 

Centres – Franchisee – 200, Own – 7 

Courses – Skill development, Long term courses, High end courses, Certified 

courses(Oracle,MS,Sun,Cisco) 


ndustry Scenario, Market Share, Opportunities 

Industry Scenario & Market share 

� CMC’s Training business ranks 3rd after NIIT & Aptech 

Opportunities 

� Large BPO/Call Centres opening in India 

� Major IT Literacy drive in schools 

� Moving in MEA, CIS, China, SEA 


trategies 

IT/Skill development outsourcing 

� IT Companies 

� BPO 

Certification centres 

Focus on China, Asia, CIS, MEA, Korea etc. - Joint centres 

CBT development on HP/SUN/IBM, IT, Domain knowledge 

High-end training centres jointly with SUN, SAP, HP, Oracle APPS+Fin, Microsoft, SIEBEL, 

CISCO, Navision 


trategies 

Venturing into e-Learning domain in India and abroad 

Netg eLearning for Corporate 

Thrust on skill development course & vendor certified courses 

Thrust on School education 

Developing Distance Learning Model with Institutes/corporates 


6. HR Overview

R Beliefs 

Trust and Faith 

Flexibility 

Open Culture 

Development of Staff is a Prime responsibility of the company 

Concern for Individuals 


nique policies 

STAFF RELATED: 

� No restriction for Time off/ Sick-off : Need Based 

� Facility to extend maternity leave 

� Additional Medical benefits in case of need 

� Various types of awards 

� Unique on-line PMS/SPEED 

� Maitree & CMC staff recreation Clubs -cultural & 

sports activity 

� Holiday Homes 


nique policies and practices 

Organisational Culture 

� Flexibility in the area of work 

� Minimum checks & control 

� Seniors even MD/CEO directly accessible 

� Staff may interact with any top official even 

MD/CEO 

� Open culture 

� Seniors addressed by name and not ‘Sir’ 

� Motivational 

� Study leave for two years 

� Scholarship scheme-two years with pay 

� Self development subsidy-reimbursement of 

fee,one increment 

� Self approval facility for top officials 

� Speak-out -staff write directly to MD/CEO 


ompensation structure 

HIGHLIGHTS 

OF THE 

REVISED 

COMPENSATION 

PROPOSAL 

FIXED & VARIABLE 

-MAJOR 

COMPONENTS 

OF 

COMPENSATION 

� Performance to drive & determine individual Compensation 

� Incorporates the best practices of the industry, higher flexibility, self-determine & 

provide tax-friendly options for maximum benefit and thereby increasing takehome 

� Compensation consist of Fixed & Variable components 

� In-house, on-line system ‘REWARDS’ – Recognition, Employee Welfare And 

Remuneration Determining System, for compensation management 

� Fixed Compensation based on Cost-to-company structure replacing the 

reimbursement based structure. Two major components – Basic Pay & Bouquet 

of Allowances. Bouquet arrived by monetisation of current entitlements. 

� Variable Compensation determined based on the performance of the 

company, SBU and individual. 


ariable allowance 

Variable allowance based on 

� Individual performance (Top 20%, Next 50 & Next 30%) 

� SBU Performance 

� Grade or management band 

� Role Profile (Technical & Functional) 

Total VA distribution amount decided by the Board based upon Company Performance 


esource Pool Breakup 


Experience-wise Break-up of Employees Qualification-wise Break-up of Employees 

to 10 yrs 

26% 

10 to 15 

yrs 

8% 

>15 yrs 

16% 

2 to 5 yrs 

35% 

< 2 yrs 

15% 

50% of Regular employees have more than 5 

years of experience. This pool serves as a 

resource for CMC’s complex project management 

capabilities 

Graduates 

59% 

Diplomas 

12% Others 

2% 

Large resource pool of trained engineers in 

diverse technologies with varied skill sets helps 

in end-to-end service delivery 

Post 

Graduate 

& 

Professio 

s 

27% 


esource Pool Breakup 


E&T 

2% 

ITeS 

3% 

PCG 

7% 

SI 

32% 

R&D 

10% 

Supp 

11% 

Others 

1% 

CS 

34% 

SBU Staff Count 

CS 1018 

SI 1003 

ITeS 90 

E&T 66 

PCG 219 

R&D 312 

Supp 346 

Others 20 

3074 


7. Financial & Subsidiary Company - Overview

inancial Summary (Standalone) 

s. crs) 

00 

00 

00 

00 

00 

00 

00 

0 

346 

Revenues Profitability Return Ratios 

CAGR = 16 % 

469 

534 

565 

615 

FY99 

FY00 

FY01 

FY02 

FY03 

(Rs. crs) 

40 

35 

30 

25 

20 

15 

10 

5 

0 

3% 

2% 

7 

FY99 

FY00 

CAGR = 50 % 

13 

5% 

FY01 

24 

6% 

6% 

34 37 

FY02 

FY03 

PAT PAT Margin 

7% 

6% 

5% 

4% 

3% 

2% 

1% 

0% 

60% 

50% 

20% 

10% 

0% 

16% 

45% 48% 

40% 

36% 36% 

34% 

28%29% 30% 

30% 

23% 

FY99 

FY01 

FY03 

ROCE RONW 


ey Productivity Indices 

(Rs. 

Lakhs) 

Revenue Per Person Year Value Added to Manpower Cost PAT Per Person Year 

5.00 

0.00 

5.00 

0.00 

5.00 

0.00 

FY99 

11.66 

15.88 

FY01 

19.31 

18.92 18.94 

FY03 

(Times) 

3.50 

3.00 

2.50 

2.00 

1.50 

1.00 

0.50 

0.00 

2.74 

FY99 

2.62 

FY00 

3.27 

FY01 

3.04 

FY02 

2.86 

FY03 

(Rs. '000) 

120 

100 

Revenue per person - Total revenue divided by average employee for the year 

Value Added to manpower cost: (Total Revenue less material costs for equipment and component)/Total employee compensation 

80 

60 

40 

20 

0 

25 

FY99 

FY00 

43 

88 

113 114 

FY01 

FY02 

FY03 


Y 2003: Highlights of Financial Performance 

Total revenue at Rs. 615 crores up 8.7% y-o-y. Operating Revenue up 11.2% at Rs. 608 

crores. 

Quality of revenue improves with other incomes contributing only 1.1% to total revenue 

compared with 3.3% last year 

Operating margins improve from 7.8% in FY 2001-2002 to 9.8% 

PAT growth of 10.1% to Rs. 37.1 crores. 

Revenue growth driven by International business, which is up 55.7%; international business 

share increased from 14% to 20% 

E&T segment continues to face sluggish market conditions – revenue down by 49.4% 

Operating costs as percentage of operating revenue declined from 92.2% to 90.2%; 

manpower cost declines from 20.6% to 19.8% 


Y 2003: Highlights of Financial Performance (Consolidated) 

Consolidated revenue at Rs. 679 crores up 5.4% 

CMC Americas (formerly known as BRI) revenue have fallen from $31.26 million to $ 24.65 

million (April-March period). However, CMC Americas pares losses to $0.31 million 

compared to $ 1.26 million last year 

Major restructuring and cost rationalization at CMC Americas during the year 

Consolidated operating margins improved from 5.2% in FY 2002 to 8.8% 

Consolidated Profit After Tax at Rs. 36.4 crores up 85% y-o-y 

CMC Limited 

1

Y 2003 Financial Performance: Revenue & Profits(1) 

620 

600 

580 

560 

540 

520 

Total Revenue 

(Rs crore) 

CAGR: 5.5% 

553 

565 

615 

FY01 FY02 FY03 

1) Standalone financials; Year ending March 31, 2003 

70 

60 

50 

40 

30 

20 

10 

0 

(Rs crore) 

51.3 

PBDIT 

CAGR: 13.5% 

61.1 

66.1 


40 

35 

30 

25 

20 

15 

10 

5 

0 

(Rs crore) 

25.1 

PAT 

CAGR: 21.6% 

33.6 

37.1 



1

Y 2003 Financial Performance: Margins(1) 

12.0% 

10.0% 

Operating Margins 

8.0% 

6.0% 

4.0% 

2.0% 

0.0% 

6.8% 7.8% 

9.8% 


11.0% 

10.5% 

10.0% 

9.5% 

9.0% 

8.5% 

PBDIT Margins 

9.3% 

10.8 

% 

10.8 

% 


7.0% 

6.0% 

5.0% 

4.0% 

3.0% 

2.0% 

1.0% 

0.0% 

PAT Margin 

4.5% 

6.0% 6.0% 


Operating margins improved through focus on international business & better 

manpower utilization despite tough market conditions 

1) Standalone financials ; Year ending March 31, 2003 


1

Y 2003 Financial Performance: Segmental Revenue(1) 

55% 

Growth 

50% 

0% 

-50% 

6.8% 

FY02 

3% 

15% 

4% 

9% 

14% 

13.9% 

43.7% 

54% 

FY03 

Customer Services System Integration ITES Educational -49.4% Training International 

Growth driven by International business - effective leveraging of TCS 




ITES 


International 

Others 

16% 

1% 

55.7% 

5% 

4% 

20% 


1

alf Yearly - Financial Performance: Segmental Revenue(1) 

46% 

1) Standalone financials 

H1- FY03 

20% 

1% 

4% 

6% 

23% 



ITES 


International 

Others 

H1-FY04 

64% 2% 

1% 

11% 

5% 

17% 


1

Y 2003 Financial Performance: Regional Revenue(1) 

14% 

24% 

Growth 

30% 

-20% 

28% 

FY02 


20% 

14% 

11.1% 

North 

East 

West 

South 

International 

14% 

21% 

39.9% 

20% 

FY03 

-6.7% 

North East 

-14.9% 

West South International 

25% 

55.7% 

20% 


1

Y 2003 Financial Performance: Consolidated(1) 

690 

680 

670 

660 

650 

640 

630 

620 

Total Revenue 

(Rs Crore) 

644 

5.5% 

1) Year ending March 31, 2003 

679 

FY02 FY03 

70 

60 

50 

40 

30 

20 

10 

0 

(Rs Crore) 

46.6 

PBDIT 

41.4% 

65.9 

FY02 FY03 

40 

35 

30 

25 

20 

15 

10 

5 

0 

(Rs Crore) 

19.7 

PAT 

84.8% 

36.4 

FY02 FY03 


1

ighlights of Performance – HYE September, 2003 

Total Revenue in H1 up 47% at Rs. 343 crores compared with 234 crs in last year. 

Consolidated Revenue at Rs. 365 crs. 

Profit before tax up 36% at Rs. 24.3 crs.; Consolidated PBT at Rs. 23.4 crs. 

Total Revenue for Q2 at Rs. 184 crs. up 35% y-o-y and 15 % q-o-q 

PBT for Q2 at Rs. 12.5 crs. up 49% y-o-y and 7 % q-o-q. 

Revenue Growth driven by CS and ITES – CS up by 98%; ITES up by 86%. 

International Revenues growth at 9%. 

PAT per person month up by 28% 


1

1 Financial Performance (Standalone) 

400.0 

350.0 

300.0 

250.0 

200.0 

150.0 

100.0 

50.0 

0.0 

Total Revenue 

(Rs Crore) 

47% 

234. 

0 

343 

FY 03 FY 04 

35 

30 

25 

20 

15 

10 

5 

0 

(Rs Crore) 

21.9 

PBDIT 

37% 

30.0 

FY 03 FY 04 

20.0 

15.0 

10.0 

5.0 

0.0 

(Rs Crore) 

13.0 

PAT 

27% 

16.6 

FY 03 FY 04 

Strong Volume growth neutralized the impact of pressure on margins in tough 

market conditions 


1

1 Financial Performance – Productivity (Standalone) 

72 

71 

70 

69 

68 

67 

66 

65 

NVA Per Person 

Month 

(‘000 Rs) 

67.7 

5% 

71.2 

FY 03 FY 04 

2.5 

2.4 

2.3 

2.2 

2.1 

2.0 

1.9 

NVA/Employee Cost 

(Times) 

2.14 

13% 

2.43 

FY 03 FY 04 

10 

8 

6 

4 

2 

0 

PAT Per Person 

Month 

(‘000 Rs) 

6.6 

28% 

8.5 

FY 03 FY 04 

Focus on improved manpower utilization to reduce costs and increase profits 


1

Revenue Mix (By activity) 

Period ended 

(Rs. Crs.) 30.9.2003 2003 2002 2001 

(a) Sale of purchased equipment 

(b) Services 

173 

(i) Software services 84 

(ii) Maintenance services 40 

(iii) Other services 32 

(c) Education and training 8 

(d) Lease rentals 0 

Total Sales 337 

(e) Other Income 6 

343 

Above table is based on unaudited financial data 

50% 262.12 43% 225.71 40% 232.42 42% 

25% 185.62 30% 159.37 28% 141.56 26% 

12% 78.39 13% 76.19 13% 66.63 12% 

9% 56.19 9% 35.8 6% 36.43 7% 

2% 24.67 4% 48.44 9% 59.38 11% 

0% 0.99 0% 1.2 0% 1.26 0% 

98% 607.98 99% 546.71 97% 537.68 97% 

2% 6.74 1% 18.63 3% 14.93 3% 

100% 614.72 100% 565.34 100% 552.61 100% 


1

Revenue Mix (By SBU) 

Period ended 

(Rs. Crs.) 30.9.2003 2003 2002 2001 

Domestic 

CS 215 

SI 37 

ITeS 18 

E&T 8 

Total 277 

International 59 

Total 337 

bove table is based on unaudited financial data 

64% 336.1 55% 314.62 57% 296.18 55% 

11% 96.34 16% 84.61 15% 79.92 15% 

5% 30.1 5% 20.94 4% 13.05 2% 

2% 24.81 4% 49.06 9% 59.38 11% 

82% 487 80% 469 86% 449 83% 

18% 121 20% 78 14% 89 17% 

100% 608 

100% 547 

100% 538 

100% 


1

7. Financial & Subsidiary Company - Subsidiary Company 

Overview

MC Americas, Inc. - Overview 

Incorporated as Baton Rouge International, Inc. on 7th October, 1991 in the state of 

Delaware head quartered in Louisiana; 100% owned by CMC Limited. 

Formed as a separate corporation consequent upon acquisition of Baton Rouge division of 

Fiserve Financial Systems by CMC Limited on 1st October, 1991; operations in existence 

since 1979 

Renamed as CMC Americas, Inc. in May, 2003 

Offices in 10 cities in US. 

CMC’s front end in US for CMC’s products and services 

Revenue of US$ 26 million in 2002 

Activities include Consulting, Project implementation, Project Resourcing, Outsourcing both 

onsite and offshore 


1

MC Americas, Inc. – Overview (contd….) 

Business Systems Group: 

� Data Warehousing 

� Enterprise Application 

� Enterprise Management 

� E-consulting/Web Technologies 

Engineering Systems Group: 

� ECAD 

� Embedded Systems 

� SCADA 


1

CMC Americas, Inc. – Financial Performance 

(Million $) 

Revenues 

Operating Expenses 

25.75 

Manpower expenses 15.62 

Other Operating expenses 11.22 

Total Operating expenses 26.84 

Profit/(Loss) from Operations (1.08) 

Depreciation and amortization 

Loss from impairment of capitalised 

0.19 

software development costs - 

Interest (income)/ expense 0.04 

Profit/(Loss) before Tax (1.31) 

Tax expenses/(Benefit) (0.38) 

Net Profit / (Loss) (0.93) 

Year ended 31st December 

2002 2001 2000 1999 1998 

35.42 

21.46 

13.80 

35.27 

0.15 

0.79 

1.73 

(0.09) 

(2.28) 

(0.66) 

(1.61) 

41.65 

22.60 

15.72 

38.33 

3.33 

0.75 

- 

(0.04) 

2.62 

1.06 

1.57 

28.68 

16.03 

11.73 

27.77 

0.91 

0.11 

- 

0.08 

0.73 

0.18 

0.55 

23.77 

13.14 

10.14 

23.27 

0.50 

0.05 

- 

0.03 

0.42 

0.13 

0.29 


1

Thank You 

CMC CMC Limited 

1

Presentation to Analysts - CMC Limited

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