CMC aiming to become zero debt company in FY08

CMC announced its fourth quarter and FY07 results. It reported net profit of Rs 20.8 crore (Rs 208 million) in the fourth quarter versus Rs 20.4 crore (Rs 204  million) in the previous quarter.

Here are the keytakeaways of CMC concall which was hosted by UTI securities:-

• 365 bps EBIDTA expansion due to improved business mix & increase in man power productivity
• US & UK region contributing to growth
• Grown in all four SBUs
• Significant win in ITES division
• Have been working with TCS for IMS segment...expect good growth in future
• Aim to become zero debt company in FY08
• Continue to have challenges on retaining employees
• Continue to focus on healthy margin growth
• In Systems Integration embedded systems is growing well
• Increase in other expenses is due to outsourcing of some services
• Rs 6 cr write-off for debtors; donot expect further write-offs
• Directionally moving towards expanding margin; no specific guidance
• Rs 60 cr for capex for  FY08
• Debt of Rs 17.7 cr as on March 31, 2007, were at Rs 68 cr at end of FY06
• Cash in hand is Rs 38 cr
• Tax outgo to reduce as share of international revenues increase
• Powering ahead on all cylinders - growth possible in all 4 SBUs
• employee base at 3509; expects to add 600 people in FY08
• Attrition has been moving between 22-24%

for more on the concall listen to audio >>>>