1. Analysts Presentation
Year Ended 31st March, 2004
Mumbai; 26th April, 2004
Your IT Partner
1

2. Revenue – FY 2003-04
Total Revenue
• Total Revenue up 24% at Rs. (Rs crore)
764 crores compared with 615 900
13%
GR:
crs in last year. 764
800 CA
700
• Five year CAGR at 13%. 614
565
600 553
• Revenue Growth driven by CS - 468
500
share of CS Revenue in overall 400
revenue increases from 54% to 300
63%. 200
100
• International Service Revenues
0
up 19%.
FY 00 FY 01 FY 02 FY 03 FY 04
2

3. Segmental Revenue - FY 2003-04
FY03 FY04
Customer Services
System Integration
70%
28%
ITES
62%
23%
Educational Training
Others
5%
4%
4% 2%
Growth 1% 1%
36.84%
40%
11.75%
20% 4.57%
0%
-20%
-26.02%
-40%
Customer Services System Integration ITES Educational Training
3

4. Segmental Revenue - FY 2003-04
FY03 FY04
80%
79%
18%
20%
1% 2%
Growth
30% 25.5%
20%
12.22%
10%
0%
Domestic International
4

5. International Revenue
CMCA
30%
TCS (GTM)
8%
Offshore
44%
Onsite
56%
CMC Direct
23%
39%
TCS (BA)
Growth Growth
40% 150% 105.38%
30.5%
30% 100%
20% 50% 14.54%
10% 0%
1.1%
0% -50% -24.7%
Onsite Offshore TCS (BA) CMCA Solutions Business
Increased success in System Integration solutions in the international
market
5

6. Profitability – FY 2003-04
PBT
• Profit before tax up 16% at Rs. (Rs crore)
33%
70
65.7 crs. compared with Rs. 56.7 65.71
GR:
CA
60 56.66
crs in last year; 5 year CAGR at 51.11
50
33% 39.71
40
• Profit after tax up 30% at Rs. 48.0 30
20.7
crs. compared with Rs. 37.1 crs 20
10
in last year; 5 year CAGR at 39%
0
FY 00 FY 01 FY 02 FY 03 FY 04
• Profits impacted by Rs. 11.4 crs
PAT
increase in manpower cost due (Rs crore)
1st 39%
to restructuring w.e.f. 60
GR:
CA 47.99
October, 2003 and increase in 50
other income from Rs. 6.7 Crs to 40 37.05
33.64
16.6 crs 30
25.09
20
• Effective Tax rate falls from 34% 12.7
10
to 27% due to higher
0
international service revenue FY 00 FY 01 FY 02 FY 03 FY 04
6

7. Margins
Operating Margins PBT Margins PAT Margin
12.00% 10.00% 7.00%
9.2%
9.0% 6.30%
8.60%
9.00% 6.0% 6.0%
9.8% 6.00%
10.00%
8.00%
7.2%
8.20% 5.00%
7.00%
7.8% 4.5%
8.00%
6.8% 6.00%
4.00%
6.00% 5.00% 4.42%
3.00% 2.70%
4.00%
4.00% 3.70%
3.00% 2.00%
2.00%
2.00% 1.00%
1.00%
0.00% 0.00% 0.00%
FY 00 FY01 FY02 FY03 FY04 FY 00 FY01 FY02 FY03 FY04 FY 00 FY01 FY02 FY03 FY04
7

8. Shareholder Value
EPS (Rs.) Book Value
35.00 120
31.38 107
39%
30.00
GR: 100
31%
CA
GR:
CA
24.26 81
25.00
22.20 80
20.00 61
16.56 60
49
15.00
36
40
10.00 8.38
20
5.00
0.00 0
FY 00 FY01 FY02 FY03 FY04 FY 00 FY01 FY02 FY03 FY04
8

9. Q4 FY04 Financial Performance
(Rs crore) Q4 FY04 Q4 FY03 Growth
Y-o-Y
Total Revenue 218.7 240.4 - 9.1%
PBT 25.0 24.6 1.6%
PBT Margins 11.4% 10.2%
PAT 20.5 13.8 48.6%
PAT Margin 9.4% 5.7%
9

10. Consolidated Financial Performance
• Revenue of CMC Americas for
(Rs crore) FY04 FY03 Growth
Y-o-Y
Apr-Mar 2004 lower by 26% at $
18.2 mn. Compared with $
Total Revenue 801.7 679.1 18.1%
24.7mn. last year.
PBT 62.9 55.4 13.5%
• CMC Americas posts a profit of
PBT Margins 7.8% 8.2%
$ 58K in QE March, 2004.
PAT 44.8 36.4 23.1%
• Financial Year of CMC Americas
PAT Margin 5.6% 5.4%
proposed to be changed to
April-March from current Jan-
Dec.
10

11. Debtors Profile
30-60 days 60-90 days
4%
12%
• Debtors level falls to
90-180 days
Rs. 180 crs. (88 days) 16%
compared with Rs. 208
52%
crs. (123 days) on 31st 0-30 days
March, 2003. 16%
>180 days
Debtors Level
• Total debtors including (No. of days)
140
123
accrued debtors level 120
108
102
96
100
88
falls to 144 days 80
60
compared 161 days as 40
on 31st March, 2003. 20
0
FY 00 FY 01 FY 02 FY 03 FY 04
11

12. Strengths & Strategy
12

13. Key Differentiators
End-to-End Solutions
Strong Parentage Technological &
Domain Expertise
Strong Service Delivery Extensive track record
Chain in Government projects
Large & Complex
Experienced & Skilled Project Management
Resource Pool Capability
Strong Customer
Relationships & Vendor
Partnerships
13

14. Wide Range of Service Offerings & Domain Expertise
Technology competency
Banking & Finance
Transportation
E-Governance
Biometrics
Insurance
Defense
Power
Mining
Verticals
Customer Services, Systems Integration, ITeS, Education & Training
Services
• • • • • • • •
TC/4 Retail GENISYS - Container OSKER - NIRDESHAK Air defense FACTS - VISTA/VOICE
Frameworks/ •
Banking Branch and Handling SCADA - GPS based handling Completely Healthcare
Software System division Systems based vehicles systems automated solutions
• • •
automation energy and tracking fingerprint
VECTOR - Cargo Radar data •
Assets Treasury
power system identification
•
Stock Enterprise Management processing management
solutions and retrieval
•
Exchange software for Systems CRYSTAL - systems • Networking
solution
•
• •
System for general Load Mine
Railway Airfield
Online Trading insurance Dispatch planning
Reservations lighting and
companies package
• •
•
VEDAS - Distribution control
Freight
•
Depository automation ERP for systems
Management
Solutions mines
• •
• Sub Station Embedded
Hardware
• DIGIPURSE automation software
solutions
• systems
Demand side
• ARTS
management
Technology + Domain + Infrastructure Mgt. = Build, Manage & Support
Customer’s IT systems
14

15. Core Products/Solutions in key Verticals
Transport Port Solutions Insurance – GENISYS SCADA/
ARTS, IMPRESS, FOIS, MACH, CALM Real Time
Train Scheduling Systems
Fingerprint Tracing Event Mining Securities
System Management DYNAMINE BOLT, Vector,
System OITDS Vedas
15

16. Key Customer Relationship
Mundra Port
United Western Bank National Securities Depository Ltd.
Indian Railways RBI New India Assurance
National Insurance Company The Stock Exchange, Mumbai TRW Automotive Systems
ONGC Reliance General Insurance Co. Ltd.
Charleston County
Indian Oil Corporation Bank of Baroda
Census of India Bharat Petroleum Corporation Ltd. Bank of India
London Underground
16

17. Growth Strategy
Leveraging our Group Synergies
Broadening Improving
Customer Internal
Reach Efficiencies
Increasing Share of Value Added Services
17

18. Growth Strategy
• Leverage domain and technology strengths with TCS’
international presence and large customer base
Leverage
– Addressable market expansion - Offerings,
Group Customers, Geographies
Synergies
• Combined strength - Joint bidding for large, complex
projects
• Professional services in chosen horizontals
• Joint marketing in verticals where CMC has strong
domain expertise
• Infrastructure development and management services,
Business
Biometrics, Transportation, Embedded Systems etc.
Association
with TCS • Accessing TCS’ existing clients for select services
• Leverage the TATA & TCS brand, reach &
infrastructure in USA,Europe
• Adopt best practices at strategic and operational level
18

19. Growth Strategy
• Replicable solutions and domain expertise
• Deepen engagement scope
– Offerings depth enables provision of point and
ongoing solutions
– Maintenance services lend greater stability and
profitability
Value Added
Services – Cross sell higher range of services and solutions
• Move up value chain
– ITeS – Data entry to process management
– Education & training – From conventional
offerings to knowledge management & e-
learning
19

20. Growth Strategy
• Leveraging domestic project experience for private
sector and international markets
Broadening
• Improving reach: - TCS – USA,Europe; Own offices
Customer
- Middle-east, Africa
Reach,
• Internal structure
Deepening
Customer Focus – Aligning offerings focus with industry practices
– Key account management strategy
• Follow TCS project management best practices
Focus on • Quality & excellence initiatives: CMM, CMMI, TBEM
Quality &
• Certification drive: ITIL, CCIE, CCNA
Internal
• Marketing excellence: Mark@cmc
Efficiencies
• Improving manpower utilization
20

21. Summary – Strengths and Strategy
Differentiators Growth Strategy
Leveraging our
Strong Parentage
Group Synergies
Changing our
Customer Focus
End-to-End Solutions,
Technological &
Domain Expertise
Increasing share of
Value Added Services
Large & Complex Focusing on
Project Management improving Internal
Capability Efficiencies
21

22. Major Developments
22

23. Major Developments
• CMC takes up the • Aligns business • Divestment of
• Incorporation • Reorganises
• Partial
maintenance of focus along remaining stake
of Computer businesses
Divestment
800 IBM vertical markets by GoI though
Maintenance into five
installations spread like transportation,
by GoI public offering
across India. mining, power and
Corporation strategic
Initiates training banking • Tata Sons
Limited business units
courses shareholding
• Sets up INDONET
predominantly to
transferred to
clients
TCS Ltd.
1975 1976 1978 1984 1986 1991 1992 1993 1995 2001 2004
• Diversifies activities • Acquires Baton • Listing on • Tata Sons
• Commences
• Commen to include Rouge
Indian Limited
operations “turnkey” projects, International Inc.
ces Bourses acquires 51%
IT education, in USA – a step
software towards stake in CMC
operation development. globalisation
Renamed CMC (renamed as CMC
s Limited Americas, Inc. in
2003)
23

24. Shareholding Pattern – 31st March, 2004
Mutual Funds
FIIs
7.91%
7.40%
Banks, FIs, Ins. Cos.
13.35%
51.12%
TCS Ltd.
20.22%
Others/Public
24

25. Thank You
25