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Exhibit1: RevenuenegativesurpriseledbyclosureofaturnkeyprojectinCustomerServiceinQ4FY13(Rsm)Y/eMarch Q1FY14 Q4FY13 QoQ Q1FY13 YoY Cons PLe Var(Act.Vs

Est.)

Sales 4,866 5,240 7.1% 4,523 7.6% 5,428 5,449 10.7%

EBITDA 770 8185.8% 752 2.4% 879 872

11.6%

EBITDAMargin 15.8% 15.6% 22bps 16.6% 80bps 16.2% 16.0% 17bps

PAT 531.3 613 13.4% 584 9.1% 674 675 21.3%

EPS (diluted) 17.5 20.2 13.4% 19.28 9.1% 22.2 22.3 21.3%

Source:CompanyData,Bloomberg,PLResearch

Exhibit2: RevisingFY14andFY15estimatesdownwardNew Old Change

FY14E FY15E FY14E FY15E FY14E FY15ERevenue 21,885 25,416 23,107 26,820

5.3%

5.2%EBITDAMargin 16.4% 15.8% 16.4% 15.8% 0bps 0bps

EPS 93.6 107.2 99.7 113.9 6.1% 5.9%

TargetPrice 1360 1430 4.9%Target Multiple 14 14 0.0%

Source:CompanyData,PLResearch

Exhibit3: IndiabusinessdeclinedsharplyQ1FY14 Q4FY13 QoQ Q1FY13 YoY

CMC Ltd (Standalone) 2725 3358 18.8% 2663 2.3%

CMC Americas & CMC eBiz 2,141 1,881 13.8% 1,860 15.1%


Exhibit4: CustomerServicesdeclinedduetocompletionofturnkeyprojectinQ4FY13ByServiceOffering(Rsm) Q1FY14 Q4FY13 QoQ Q1FY13 YoYCustomer Services 966.8 1,560.8 38.1% 901.7 7.2%

Systems Integration 2,929.6 2,717.4 7.8% 2,643.8 10.8%

ITES 723.3 693.4 4.3% 713.5 1.4%

Education & Training 144.2 143.6 0.4% 138.9 3.8%

SEZ 102.3 124.4 17.8% 124.8 18.0%

Unallocable Revenue 100.7 40.6 148.2% 57.0 76.6%

%ofTotalCustomer Services 19.5% 29.6% 1010bps 19.7% 23bps

Systems Integration 59.0% 51.5% 752bps 57.7% 126bps

ITES 14.6% 13.1% 143bps 15.6% 102bps

Education & Training 2.9% 2.7% 18bps 3.0% 13bps

SEZ 2.1% 2.4% 30bps 2.7% 67bps

Unallocable Revenue 2.0% 0.8% 126bps 1.2% 78bps


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Exhibit5: SegmentResults(PBIT)ByServiceOffering(Rsm) Q1FY14 Q4FY13 QoQ Q1FY13 YoYCustomer Services 78.7 81.7 3.7% 98.6 20.2%

Systems Integration 616.1 626.3 1.6% 558.6 10.3%

ITES 187.1 168.4 11.1% 200.9 6.9%


SEZ 77.0 100.8 23.6% 99.8 22.9%

PBITMargin(%)Customer Services 8% 5% 290bps 11% 279bps

Systems Integration 21% 23% 202bps 21% 10bps

ITES 26% 24% 159bps 28% 230bps

Education & Training 14% 18% 344bps 4% 1022bps

SEZ 75% 81% 577bps 80% 470bps


Exhibit6: CapitalEmployedByServiceOffering(Rsm) Q1FY14 Q4FY13 QoQ Q1FY13 YoYCustomer Services 1,012.0 1,193.1 15.2% 672.4 50.5%

Systems Integration 2,279.2 1,748.7 30.3% 1,687.1 35.1%

ITES 697.5 754.5 7.6% 663.7 5.1%


SEZ 3,070.4 2,853.6 7.6% 2,274.9 35.0%


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IncomeStatement(Rsm)Y/eMarch 2012 2013 2014E 2015ENetRevenue 14,693 19,279 21,885 25,416Software Dev. Exp. 6,168 8,665 9,876 11,384

Gross Profit 8,525 10,613 12,009 14,033

Employee Cost 4,402 5,216 5,911 6,857

Other Expenses 1,880 2,229 2,452 2,844EBITDA 2,243 3,168 3,646 4,332Depr. & Amortization 214 232 258 293

Net Interest 2 4 4

Other Income 175 132 300 239

ProfitbeforeTax 2,204 3,066 3,684 4,273Total Tax 686 764 847 1,026

ProfitafterTax 1,518 2,302 2,837 3,248Ex-Od items / Min. Int.

Adj.PAT 1,518 2,302 2,837 3,248Avg.SharesO/S(m) 30.3 30.3 30.3 30.3EPS(Rs.) 50.1 76.0 93.6 107.2

CashFlowAbstract(Rsm)Y/eMarch 2012 2013 2014E 2015EC/F from Operations 557 1,233 2,332 2,865

C/F from Investing (184) 44 (2,188) (1,932)

C/F from Financing (351) (435) (485) (545)

Inc. / Dec. in Cash 23 842 (341) 388

Opening Cash 565 532 1,374 1,033

Closing Cash 588 1,374 1,033 1,421

FCFF (738) 1,296 144 933

FCFE (665) 1,317 144 933

KeyFinancialMetricsY/eMarch 2012 2013 2014E 2015EGrowthRevenue (%) 35.5 31.2 13.5 16.1

EBITDA (%) 6.5 41.2 15.1 18.8

PAT (%) (15.4) 51.7 23.2 14.5

EPS (%) (57.7) 51.7 23.2 14.5

ProfitabilityEBITDA Margin (%) 15.3 16.4 16.7 17.0

PAT Margin (%) 10.3 1 1.9 1 3.0 12.8

RoCE (%) 18.7 24.5 23.6 22.6

RoE (%) 21.3 26.8 26.7 24.7

BalanceSheetNet Debt : Equity (0.1) (0.1) (0.1)

Net Wrkng Cap. (days) ValuationPER (x) 27.0 17.8 14.5 12.6

P / B (x) 5.3 4.3 3.5 2.8

EV / EBITDA (x) 18.2 12.6 11.1 9.2

EV / Sales (x) 2.8 2.1 1.8 1.6

EarningsQualityEff. Tax Rate 31.1 24.9 23.0 24.0

Other Inc / PBT 7.9 4.3 8.2 5.6

Eff. Depr. Rate (%) 6.0 5.8 4.2 3.6

FCFE / PAT (43.8) 57.2 5.1 28.7

Source:CompanyData,PLResearch.

BalanceSheetAbstract(Rsm)Y/eMarch 2012 2013 2014E 2015EShareholder's Funds 7,722 9,463 11,815 14,517

Total Debt 396 417 417 417

Other Liabilities

TotalLiabilities 8,118 9,879 12,231 14,933Net Fixed Assets 2,915 3,697 5,627 7,265Goodwill 3 3 3 3

Investments 2,922 2,381 2,381 2,381

Net Current Assets 2,168 3,728 4,149 5,213

Cash&Equivalents 588 1,374 1,033 1,421

OtherCurrentAssets 5,954 6,901 8,932 10,198

CurrentLiabilities 4,375 4,547 5,816 6,406

Other Assets 110 71 71 71

TotalAssets 8,118 9,879 12,231 14,933

QuarterlyFinancials(Rsm)Y/eMarch Q2FY13 Q3FY13 Q4FY13 Q1FY14NetRevenue 4,586 4,930 5,240 4,866EBITDA 766 832 818 770%ofrevenue 16.7 16.9 15.6 15.8

Depr. & Amortization 56 54 68 62

Net Interest 2

Other Income 11 23 41 101

ProfitbeforeTax 721 801 789 809Total Tax 227 190 175 278

ProfitafterTax 494 611 613 531Adj.PAT 494 611 613 531

KeyOperatingMetricsY/e

March

2012

2013 2014E 2015E

Revenue (US$ mn) 305 353 381 446

Rs/US$ 48 55 58 57

Gross Margin 40 38 38 38

Subcontracting Cost (as % of Revenue) 30 35 35 35

Source:CompanyData,PLResearch.

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52.8%

19.2%

1.6%

0%

10%

20%

30%

40%

50%

60%

BUY Accumulate Reduce Sell

%ofT

otalCoverage

PLsRecommendationNomenclatureBUY : Over 15% Outperformance to Sensex over 12-months Accumulate : Outperformance to Sensex over 12-monthsReduce : Underperformance to Sensex over 12-months Sell : Over 15% underperformance to Sensex over 12-monthsTradingBuy : Over 10% absolute upside in 1-month TradingSell : Over 10% absolute decline in 1-monthNotRated(NR) : No specific call on the stock UnderReview(UR) : Rating likely to change shortly

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