cmc research presentation
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1
CMC Limited
Your IT Partner
Presentation to Analysts
2
CMC Limited
� 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 thatsuch 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.
Disclaimers
3
CMC Limited
Agenda
1. Company Overview and Strategy
2. Customer Services SBU
3. Systems Integration SBU
4. ITeS SBU
5. Education & Training SBU
6. HR Overview
7. Financials and Subsidiary Company Overview
1. Company Overview and Strategy
5
CMC LimitedCMC Limited
Vision 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
6
CMC Limited
1975 1976 1978 1984 1986 1991 1992 1993 1995 2001
� Incorporation of Computer Maintenance Corporation Limited
� Partial Divestment by GoI
� 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
� Reorganisesbusinesses into five strategic business units
CMC - Pre Acquisition
� 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
7
CMC Limited
CMC - 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
0
50
100
150
200
250
300
350
Apr-01 J ul-01 Oc t-01 J an-02 Apr-02 J ul-02 Oct-02 J an-03 Apr-03 J ul-03 Oct-03
CMC SENSEX
Acquisition by TCS
8
CMC Limited
Overview of Company
51%26%
23%
Tata SonsGovernment of India (“GoI”)
Public shareholders
�Project implementation, integration & Maintenance of software products / solutions
Systems Integration
�Hardware supply & support services, network design / implementation services
Customer Services
�Software and hardware training through 200 centres to corporate and retail clientele
Education & Training
�Value added EDI network, Forms processing, Web design and hosting, data centre services
ITES
CMC Strategic Business UnitsCMC Strategic Business Units
100%
� International Services
CMC Americas, Inc.
9
CMC Limited
Organisation Chart
Bhushan MohanIndia – North
Chinta PrakashR&D
JK GuptaCFO
A S RajyadakshaCustomer Services
Saibal GhoshEducation & Training
S BalakrishananSystems Integration
V RajaramanITES
C V RammohanBFSI
Rathin RoyInsurance
Bhushan MohanTransportation
K C RehaniE-governance
G BhulokamShipping
A K SinghMining
S V RamananHR, Internal Systems,Planning & Quality Corporate Communications
Vivek AgarwalCompany Secy. & Legal
Chinta PrakashIndia – South
S BalakrishananIndia – West
A K BhattacharyaIndia – East
Rajiv MathurAmericas
G VenkatramanEurope
Vinodh LakshamanMEA
S Ramadorai Chairman
R RamananManaging Director & CEO
Industry PracticeIndustry Practice Strategic Business UnitStrategic Business UnitGeographyGeography Corporate FunctionCorporate Function
SPS MahindrooDefense
i Company Overview and Strategy - Business Model
11
CMC Limited
Business ModelFi
nanc
ial S
ervi
ces
Bank
ing,
Insu
ranc
e,
Cap
ital M
arke
ts
Tran
spor
tR
ailw
ays,
Por
ts,
Stat
e Tr
ansp
ort
Ener
gyO
il &
Gas
, Ele
ctric
al
Indu
stria
lM
inin
g et
c.
Vertical Domain Expertise
Matrix Structure to Provide Value Added Services to Clients
Def
ense
E-G
over
nanc
e
Education & Training
Infrastructure Management
System Integration
Software Products and Development
Tech
nolo
gy E
xper
tise
12
CMC Limited
Diversified Business Mix(1)
FY02
55%
4%
9%
14%
3%
15%
Growth
-49.4%
6.8% 13.9%43.7% 55.7%
-60%-40%
-20%
0%
20%40%
60%80%
Customer Services System Integration ITES Educational Training International
Growth driven by International business - effective leveraging of TCS
(1) Standalone financials ; Year ending March 31
FY03
54%
5%
4%
20%
1%
16%Customer Services
System Integration
ITES
Educational Training
International
Others
13
CMC LimitedCMC Limited
FY03
46%
4%
6%
23%
1%
20%
FY04
63% 2%
17%
2%
5%
11%Customer Services
System Integration
ITES
Educational Training
International
Others
(1) Standalone financials
H1 Financial Performance: Segmental Revenue(1)
14
CMC Limited
Services Offered
Skills / Infrastructure
Strategic Business Units
� 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
System Integration Customer Services Education & Training ITES
15
CMC Limited
Services Offered Skills & Infrastructure
International Operations
� CMC provides end-to-end IT solutions to international clients through its international operations and CMC Americas
� 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
� 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
ii. Company Overview and Strategy - Key Differentiators
17
CMC Limited
Key Differentiators
Strong Growth in Key Segments
Sizeable Resource Pool
Well Recognised R&D capabilities
Sales and support reach in the domestic market
Wide range of service offerings & domain
expertise
Large project execution capability
Strong client base
18
CMC Limited
Strong Growth Projected in Key Segments
Domestic IT market has recorded strong growth in the past and is expected to grow similar rates in the medium term as well
6,2349,705
23,695
4,838
4,053
4,499
6,546
13,865
4,975
3,0552,070
2,257
1,234
1,996
1,6202,947
3,393
2,897
0
10,000
20,000
30,000
40,000
50,000
60,000
FY00 FY03 FY07E
(Rs. Cr)
Systems Peripherals Networking Packaged Software Domestic Services Others
Total Rs.17,002 Cr
Total Rs.26,952 Cr
Total Rs.55,925 Cr
15.9%13.9%
22.3%7.2%
30.5%
5.4%
25.0%
12.2%
15.8%
22.5%
20.6%
10.0%
CAGR = 16.6%
CAGR = 20
.0%
Source: Dataquest for the period FY00 - FY03 and IDC for FY07E
Domestic IT Market Domestic IT Market
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CMC Limited
Wide Range of Service Offerings & Domain Expertise
CMC has a vast depository of ready packages and software
Customer Services and System IntegrationServices
Frameworks/ Software Assets
� TC/4 Retail Banking System
� VECTOR -Stock Exchange System for Online Trading
� VEDAS -Depository Solutions
� DIGIPURSE
� GENISYS -Branch and division automation
� Interactive Voice Response Systems
Ban
king
& F
inan
ce
Insu
ranc
e
� Container Handling Systems
� Cargo Management Systems
� Railway Reservations
� Freight Management
� Hardware solutions
� ARTS� CUPS
Tran
spor
tatio
n
Pow
er
Min
ing
� NIRDESHAK -GPS based vehicles tracking system
� CRYSTAL -Mine planning package
� ERP for mines
� OSKER -SCADA based energy and power solutions
� Load Dispatch� Distribution
automation� Sub Station
automation� Demand side
management
E-G
over
nanc
e
Def
ense
� Air defense handling systems
� Radar data processing systems
� Airfield lighting and control systems
� Embedded software systems
Crim
inol
ogy
� FACTS -Completely automated fingerprint identification and retrieval solution
� VISTA/VOICE� Healthcare
solutions� Treasury
management� Networking
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CMC Limited
Large Project Execution Capability – Indian Railways
� 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
Background
� 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)
Project Objectives
� 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 Challenges
� 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
Key Achievements
We have track record in executing large, multi-location projects on time and at high quality standards
� FOIS - Enhanced functionality covering goods sheds and wagon reporting with 3 tier application software using Oracle and TuxedoMiddelware
� 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
� Arts - Universal ticketing counters
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CMC Limited
Strong Sales and Support Reach within Domestic Market
Well established sales and services network across the countryStrength of Sales & Marketing team – over 200 employees
Regional OfficesCorporate OfficeBranch Offices
ChandigarhNew Delhi
Jaipur
AhmedabadVadodara
Mumbai Pune
Lucknow
Calcutta
Bangalore
R&D Centre
HyderabadVisakhapatnam
Chennai
1 Employee numbers as on November 30, 2003
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CMC Limited
Key Technology Groups
Well 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
Areas of Specialization
� Image processing and pattern recognition� Pervasive computing� Process Control� Networking and communications� Object oriented methodologies� Real time embedded systems � Internet security and e-commerce
� Real-Time Systems Group
� Embedded Systems Group
� Pervasive Computing Group
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CMC Limited
< 2 yrs15%
2 to 5 yrs35%
to 10 yrs26%
10 to 15 yrs8%
>15 yrs16%
Large resource pool of trained engineers in diverse technologies with varied skill sets helps
in end-to-end service delivery
50% of Regular employees have more than 5 years of experience. This pool serves as a
resource for CMC’s complex project management capabilities
Experience-wise Break-up of Employees Qualification-wise Break-up of Employees
Graduates59%
Diplomas12% Others
2%
PostGradua
& Profess
als27%
Sizeable Resource Pool
� Employee strength as of 30th November, 2003 - 3,074
iii Company Overview and Strategy - Strategy
25
CMC Limited
Industry 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
26
CMC Limited
CMC Strategy
Value added services
Leverage domain expertise
Leverage Group synergies
Focus on quality and internal efficiencies
Focus on international market
Customer focused R&D
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CMC Limited
� 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
Value Added Value Added ServicesServices
Leverage Domain Leverage Domain ExpertiseExpertise
Leverage Group Leverage Group SynergiesSynergies
CMC Strategy
28
CMC Limited
Transportation - Rail, Road and Shipping - Our Service Offerings
� 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
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CMC Limited
Banking - 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
30
CMC Limited
Securities – Our Offering Suites
DTSSClearing & Settlement VSTAR
Commodities Exchange DTSS
Interfaces MULTEX ITS
Stock Exchange BOLT VECTOR eVECTOR BBSDTSS GILT
MintsBack-Office DpSecure
Depositories VeDAS
31
CMC LimitedCMC Limited
Insurance – 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)
32
CMC LimitedCMC Limited
Biometric 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
33
CMC Limited
� 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
Focus on Quality Focus on Quality & Internal & Internal
EfficienciesEfficiencies
Focus on Focus on International International Markets and Markets and
Indian Indian pvt pvt sectorsector
Customer Customer Focussed R&DFocussed R&D
CMC Strategy
34
CMC LimitedCMC LimitedA TATA Enterprise
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
35
CMC Limited
CMC - 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
36
CMC Limited
CMC - 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
37
CMC Limited
Key Differentiators - Summary
Strong Growth in Key Segments
Sizeable Resource Pool
Well Recognised R&D capabilities
Sales and support reach in the domestic market
Wide range of service offerings & domain
expertise
Large project execution capability
Strong client base
2. Customer Services SBU
39
CMC Limited
Overview
� 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
40
CMC Limited
Offerings of CS SBU
� Hardware Support� Sizing/Configuration/Specking� EQS� ICW Services
� Networking� Design� Topology� Implementation� Support/NOC� N/W Audit
41
CMC Limited
Market 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.
42
CMC Limited
Technology 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)
43
CMC Limited
Tech
nolo
gy s
tren
gths
Bus
ines
s st
reng
ths Service strengths
Global 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.
CMC’s Value Proposition
44
CMC Limited
Process 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
45
CMC Limited
New DelhiNew Delhi
MumbaiMumbai
ChennaiChennai
CalcuttaCalcutta
HyderabadHyderabadPunePune
BangaloreBangalore
JaipurJaipur
ChandigarhChandigarh
LucknowLucknow
VisakhapatnamVisakhapatnam
AhmedabadAhmedabad NagpurNagpur
Service Network
46
CMC Limited
Strategy
� 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.
47
CMC Limited
Strategy
� 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
49
CMC Limited
Overview
� 2002-03 Revenues from Systems Integration(SI) – Rs.9634 lacs, CAGR for the last 5 years-19%
� H1 Revenues from SI – Rs.3810 lacs
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
Systems Consultancy� Requirement Analysis� Specifications Analysis� Design and Integration� Solutioning� Software Audits� Security Audits
50
CMC Limited
Market 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
51
CMC Limited
Market 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
52
CMC Limited
Market Analysis
� The International Market Opportunities� Products & Solutions Market
� MEA, East Europe, Some of the APAC countries– Banking– Securities– Biometrics– TransportPotential 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
53
CMC Limited
Our 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
54
CMC Limited
Vertical Industry Practices
CMC has a vast depository of easily customisable packages and software
Frameworks/ Software Assets
� TC/4 Retail Banking System
� VECTOR -Stock Exchange System for Online Trading
� VEDAS -Depository Solutions
� DIGIPURSE
� GENISYS -Branch and division automation
� Interactive Voice Response Systems
Ban
king
& F
inan
ce
Insu
ranc
e
� Container Handling Systems
� Cargo Management Systems
� Railway Reservations
� Freight Management
� Hardware solutions
� ARTS� CUPS
Tran
spor
tatio
n
Pow
er
Min
ing
� NIRDESHAK -GPS based vehicles tracking system
� CRYSTAL -Mine planning package
� ERP for mines
� OSKER -SCADA based energy and power solutions
� Load Dispatch� Distribution
automation� Sub Station
automation� Demand side
management
E-G
over
nanc
e
Def
ense
� Air defense handling systems
� Radar data processing systems
� Airfield lighting and control systems
� Embedded software systems
Crim
inol
ogy
� FACTS -Completely automated fingerprint identification and retrieval solution
� Police Station Computer-isation
� VISTA/VOICE� Healthcare
solutions� Treasury
management� Networking� CM Info System� Commercial
Taxes
55
CMC Limited
Domain Expertise & Market Share
� Domestic Market Position
� Dominant� Dominant� Market Leader� Major Key projects� Major Player
� Niche Verticals
� Securities, Stock Exchanges� Insurance� Fingerprint Technology� Defense� E-Governance
56
CMC Limited
Delivery Strategy
Type TurnKey
Own Products
Third party products
One time delivery of third party products
Services
Training
Delivery Strategy and ProcessesSystem Integrator Role Industry Practice RoleImplementation 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 and Support Identification, Relationship management
Delivery, Implementation and support Customer relationship
57
CMC Limited
Leveraging 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
58
CMC Limited
Project 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
59
CMC Limited
Project Delivery Strategy
� Quality/ Productivity improvement strategy� CMM KPAs in place
� Metrics collection in Practice� All delivery centres at level 5 by 2nd 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
60
CMC Limited
Delivery 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
61
CMC Limited
Major Strengths - Recap
� Large product base
� Fast delivery and implementation
� Continuous technology upgradation
� Leading edge technologies
� Global Exposure
� Leverage Product based solutions
62
CMC Limited
Key Challenges for CMC
� Competition from smaller companies
� Shortened project life cycles
� Increased Demand for COTS
� Pressure on margins
� Global majors in domestic market
63
CMC Limited
Our 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
65
CMC Limited
Overview
� 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
66
CMC Limited
CMC’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
67
CMC Limited
CMC’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
68
CMC Limited
Target 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
69
CMC Limited
Market 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
70
CMC Limited
Market Segments – target for the near term
� Publishing Houses, Libraries
� Transport
� Manufacturing
� Oil Companies
� Telecom Companies
� Power
� Services
71
CMC Limited
Analysis of the market and CMC’s offering
72
CMC Limited
The global ITES and BPO industries are growing at a rapid paceWorld-wide ITES market breakout by process area
World-wide ITES market breakout by geography
Un ited S tates54%E u rop e
31%
Can ad a4%
J ap an3%
Latin Am erica2%
As ia/P acific5%
Res t of th e W orld
1%
World-wide BPO market (Total US$543bn) `breakout by Process Area 2004
Ad m in is tra tion4%
S ales /Mktg ./ Cu s tom er Care
5% Dis trib u tion / Log is tics
15%
Fin an ce & Accou n tin g
7%
HR14%
P aym en t S ervices
9%
Mfg . S ervices
44%
World-wide BPO market (Total US$543bn)breakout by Process Area 2004
Ad m in is tration4%
S ales /Mktg ./ Cu s tom er Care
5%Dis trib u tion /
Log is tics15%
Fin an ce & Accou n tin g
6%
HR13%
P aym en t S ervices
8%
Mfg. Services
49%
World-wide BPO market (Total US$ 208 bn)breakout by Process Area 1999
Source: Gartner Dataquest
United S tates52%
Euro pe32%
Canada4%
J apan4%
Latin America2%
As ia/P ac ific5%
Res t o f the Wo rld
1%
World-wide BPO market (Total US$ 208 bn)breakout by Geography 1999
Source: Gartner Dataquest
73
CMC Limited
• Improved efficiency• Avoidance of capex on non-
core activities• Increased customer
satisfaction
Attention on core activities
Growth drivers for the ITES industry
• Reduction in risk of technological obsolescence• Reduction in overall management burden while
retaining control of strategic decision making• Keep pace with changing standards
Strategic 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
Skill expertise benefits
• Savings on manpower and training costs
• Reduced operating costs• Reduced overheads• Avoidance of cost of chasing
technology
Cost reduction
Drivers to Ousourcing
3.9%
6.8%
6.8%7.
8%7.
8%8.7%
11.7
%15.5
%16
.5%
17.5
%20.4
%24.3
%30
.1%
0%B
e Fi
nanc
ially
sta
ble
Dis
play
Tec
hnol
ogic
al L
eade
rshi
p
Be
a St
rate
gic
Play
er
Del
iver
on
time
Add
valu
e to
the
Clie
nt's
Bus
ines
s
Be
Flex
ible
Hav
e P
rove
n R
efer
ence
s
Dur
ing
Del
iver
Pro
vide
Goo
d &
Res
pons
ive
Cus
tom
er S
ervi
ce
Cle
arly
Com
mun
icat
e w
ith C
lient
Focu
s on
Ser
vice
Qua
lity
Don
't O
verp
rom
ise
Focu
s on
Und
erst
andi
ng th
e C
ompa
ny's
Bus
ines
s
Focu
s on
Cos
t Red
uctio
n
35%
% o
f Res
pond
ents
The singlemost important reason however, seems to emanate from the cost advantages of outsourcing
74
CMC Limited
The Indian market has shown significant growth in various segments
� 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)
Indian performance 2000-01 US$ mn
Source: Nasscom
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%
75
CMC Limited
Competitor Analysis
� Many competitors are CMC’s vendors
� Price advantage due to lower overheads
� Smaller outfits� Quicker to react on investments� Have fragmented market share
76
CMC Limited
CMC Value Proposition
Providing these Services for over 25 years
Well versed with 24x7operational support
In the process of acquiringCMM level 5certification
TCS support
Why CMC ?
R&D (Tools, Methodology)
Large Number ofSuccess Stories
Working hand in hand with Fortune 500
Companies
Certified Professionals
Strategic Alliance with Major SW/HW
Networking Vendors
Proven Competency in supporting Clients using the
OnSite - Offshore Model
77
CMC Limited
In-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
78
CMC Limited
Superior Service Delivery Framework
Enhance Business Value through Continuous ImprovementEnhance Business Value through Continuous Improvement
Customer Satisfaction
OperationalExcellence
PeopleExcellence
ProcessExcellence
Techn
ology
Excell
ence
Quality Assurance
Strategic Planning
Performance Measurement
Best Practices
Customer Satisfaction Survey
Customer feedbackMSQ
MSQ
MSQ
79
CMC Limited
Delivery 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
80
CMC Limited
Our 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
81
CMC Limited
International 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
82
CMC Limited
How 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
84
CMC Limited
Overview
� 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)
85
CMC Limited
Industry 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
86
CMC Limited
Strategies
� 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
87
CMC Limited
Strategies
� 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
89
CMC Limited
HR Beliefs
� Trust and Faith
� Flexibility
� Open Culture
� Development of Staff is a Prime responsibility of the company
� Concern for Individuals
90
CMC Limited
Unique 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
91
CMC Limited
Unique policies and practices
� 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
� 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’
92
CMC Limited
Compensation structure
� 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 take-home
� 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.
HIGHLIGHTS OF THE REVISED
COMPENSATION PROPOSAL
FIXED & VARIABLE - MAJOR
COMPONENTS OF
COMPENSATION
93
CMC Limited
Variable 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
94
CMC Limited
< 2 yrs15%
2 to 5 yrs35%
to 10 yrs26%
10 to 15 yrs8%
>15 yrs16%
Large resource pool of trained engineers in diverse technologies with varied skill sets helps
in end-to-end service delivery
50% of Regular employees have more than 5 years of experience. This pool serves as a
resource for CMC’s complex project management capabilities
Experience-wise Break-up of Employees Qualification-wise Break-up of Employees
Graduates59%
Diplomas12% Others
2%
Post Graduate
& Professio
s27%
Resource Pool Breakup
� Employee strength as of 30th November, 2003 - 3,074
95
CMC Limited
SBU Staff CountCS 1018SI 1003ITeS 90E&T 66PCG 219R&D 312Supp 346Others 20
3074
Resource Pool Breakup
� Employee strength as of 30th November, 2003 - 3,074
SI32%
Others1%
Supp11%
E&T2%
ITeS3%
PCG7%
CS34%
R&D10%
7. Financial & Subsidiary Company - Overview
97
CMC Limited
Financial Summary (Standalone)
565615
534469
346
0
100
200
300
400
500
600
700
FY99FY00FY01FY02FY03
(Rs. crs)
CAGR = 16 %
34 37
24
137
6%6%
5%
3%2%
05
10152025303540
FY99FY00FY01FY02FY03
(Rs. crs)
0%
1%
2%
3%
4%
5%
6%
7%
PAT PAT Margin
28%29%
45%48%
36%
16%23%
34%30%
36%
0%
10%
20%
30%
40%
50%
60%FY99
FY01
FY03
ROCE RONW
Revenues Profitability Return Ratios
CAGR = 50 %
98
CMC Limited
Key Productivity Indices
18.92 18.9419.3115.88
11.66
0.00
5.00
10.00
15.00
20.00
25.00
FY99
FY01
FY03
(Rs. Lakhs)
Revenue Per Person Year Value Added to Manpower Cost PAT Per Person Year
3.04 2.863.27
2.622.74
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
FY99
FY00
FY01
FY02
FY03
(Times)
113 114
88
43
25
0
20
40
60
80
100
120FY99FY00FY01FY02FY03
(Rs. '000)
Revenue per person - Total revenue divided by average employee for the yearValue Added to manpower cost: (Total Revenue less material costs for equipment and component)/Total employee compensation
99
CMC Limited
FY 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%
100
CMC Limited
FY 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
101
CMC Limited
Total Revenue
553565
615
520
540
560
580
600
620
FY01 FY02 FY03
(Rs crore)
CAGR: 5.5%
PBDIT
51.361.1
66.1
010203040506070
FY01 FY02 FY03
(Rs crore)CAGR: 13.5%
PAT
25.1
33.637.1
05
10152025303540
FY01 FY02 FY03
(Rs crore)CAGR: 21.6%
(1) Standalone financials; Year ending March 31, 2003
FY 2003 Financial Performance: Revenue & Profits(1)
102
CMC Limited
PBDIT Margins
9.3%
10.8%
10.8%
8.5%
9.0%
9.5%
10.0%
10.5%
11.0%
FY01 FY02 FY03
PAT Margin
4.5%
6.0% 6.0%
0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%
FY01 FY02 FY03
Operating Margins
6.8%7.8%
9.8%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
FY01 FY02 FY03
Operating margins improved through focus on international business & better manpower utilization despite tough market conditions
(1) Standalone financials ; Year ending March 31, 2003
FY 2003 Financial Performance: Margins(1)
103
CMC Limited
FY02
55%
4%
9%
14%
3%
15%
FY03
54%
4%
20%
1%
5%
16%
Growth
6.8%13.9%
43.7%
-49.4%
55.7%
-50%
0%
50%
Customer Services System Integration ITES Educational Training International
Growth driven by International business - effective leveraging of TCS
Customer Services
System Integration
ITES
Educational Training
International
Others
(1) Standalone financials ; Year ending March 31, 2003
FY 2003 Financial Performance: Segmental Revenue(1)
104
CMC Limited(1) Standalone financials
Half Yearly - Financial Performance: Segmental Revenue(1)H1- FY03
46%
4%
6%
23%
1%
20% H1-FY04
64% 2%
17%
1%
5%
11%Customer Services
System Integration
ITES
Educational Training
International
Others
105
CMC Limited
FY02
24%
28%
20%
14%
14%
FY03
20%
25%
20%
21%
14%
Growth
-6.7%
11.1%
-14.9%
39.9%
55.7%
-20%
30%
North East West South International
North
East
West
South
International
(1) Standalone financials ; Year ending March 31, 2003
FY 2003 Financial Performance: Regional Revenue(1)
106
CMC Limited
Total Revenue
679
644
620630640650660670680690
FY02 FY03
PBDIT
46.6
65.9
010203040506070
FY02 FY03
5.5%
PAT
19.7
36.4
05
10152025303540
FY02 FY03
41.4%84.8%
(1) Year ending March 31, 2003
(Rs Crore)(Rs Crore)(Rs Crore)
FY 2003 Financial Performance: Consolidated(1)
107
CMC Limited
Highlights 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%
108
CMC Limited
Total Revenue
234.0
343
0.050.0
100.0150.0200.0250.0300.0350.0400.0
FY 03 FY 04
PBDIT
21.9
30.0
05
101520253035
FY 03 FY 04
47%
PAT
13.0
16.6
0.0
5.0
10.0
15.0
20.0
FY 03 FY 04
37% 27%
(Rs Crore)(Rs Crore)(Rs Crore)
Strong Volume growth neutralized the impact of pressure on margins in tough market conditions
H1 Financial Performance (Standalone)
109
CMC Limited
NVA Per Person Month
67.7
71.2
6566676869707172
FY 03 FY 04
NVA/Employee Cost
2.14
2.43
1.9
2.0
2.1
2.2
2.3
2.4
2.5
FY 03 FY 04
5%
PAT Per Person Month
6.6
8.5
0
2
4
6
8
10
FY 03 FY 04
13% 28%(‘000 Rs)(Times)(‘000 Rs)
Focus on improved manpower utilization to reduce costs and increase profits
H1 Financial Performance – Productivity (Standalone)
110
CMC Limited
Revenue Mix (By activity)
Above table is based on unaudited financial data
Period ended <----------- Year ended March ----------->(Rs. Crs.) 30.9.2003 2003 2002 2001
(a) Sale of purchased equipment 173 50% 262.12 43% 225.71 40% 232.42 42%(b) Services
(i) Software services 84 25% 185.62 30% 159.37 28% 141.56 26%(ii) Maintenance services 40 12% 78.39 13% 76.19 13% 66.63 12%(iii) Other services 32 9% 56.19 9% 35.8 6% 36.43 7%
(c) Education and training 8 2% 24.67 4% 48.44 9% 59.38 11%(d) Lease rentals 0 0% 0.99 0% 1.2 0% 1.26 0%
Total Sales 337 98% 607.98 99% 546.71 97% 537.68 97%(e) Other Income 6 2% 6.74 1% 18.63 3% 14.93 3%
343 100% 614.72 100% 565.34 100% 552.61 100%
111
CMC Limited
Revenue Mix (By SBU)
Above table is based on unaudited financial data
Period ended <----------- Year ended March ----------->(Rs. Crs.) 30.9.2003 2003 2002 2001
Domestic CS 215 64% 336.1 55% 314.62 57% 296.18 55%SI 37 11% 96.34 16% 84.61 15% 79.92 15%ITeS 18 5% 30.1 5% 20.94 4% 13.05 2%E&T 8 2% 24.81 4% 49.06 9% 59.38 11%Total 277 82% 487 80% 469 86% 449 83%
International 59 18% 121 20% 78 14% 89 17%
Total 337 100% 608 100% 547 100% 538 100%
7. Financial & Subsidiary Company - Subsidiary Company Overview
113
CMC Limited
CMC 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 ofFiserve 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
114
CMC Limited
CMC Americas, Inc. – Overview (contd….)
� Business Systems Group:� Data Warehousing� Enterprise Application� Enterprise Management� E-consulting/Web Technologies
� Engineering Systems Group:� ECAD� Embedded Systems � SCADA
115
CMC Limited
CMC Americas, Inc. – Financial Performance
(Million $)2002 2001 2000 1999 1998
Revenues 25.75 35.42 41.65 28.68 23.77 Operating ExpensesManpower expenses 15.62 21.46 22.60 16.03 13.14 Other Operating expenses 11.22 13.80 15.72 11.73 10.14 Total Operating expenses 26.84 35.27 38.33 27.77 23.27 Profit/(Loss) from Operations (1.08) 0.15 3.33 0.91 0.50 Depreciation and amortization 0.19 0.79 0.75 0.11 0.05 Loss from impairment of capitalised software development costs - 1.73 - - - Interest (income)/ expense 0.04 (0.09) (0.04) 0.08 0.03 Profit/(Loss) before Tax (1.31) (2.28) 2.62 0.73 0.42 Tax expenses/(Benefit) (0.38) (0.66) 1.06 0.18 0.13 Net Profit / (Loss) (0.93) (1.61) 1.57 0.55 0.29
Year ended 31st December
116
CMC LimitedCMC Limited
Thank You
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