Home Market Cyient profit grows 54% sequentially

Cyient profit grows 54% sequentially


Bengaluru: Cyient reported a 14% year-on-year growth in net profit to Rs 127.1 crore for the July-September quarter; while its profit jumped 54% sequentially.

The Hyderabad-headquartered engineering services company said its highest ever quarterly revenue and profit numbers came on the back of all-rounded growth in Aerospace and Defense, Transportation, Industrial, Energy and Natural Resources (IENR) and Semiconductor, IOT and Analytics (SIA) business units.

The companys revenue stood at Rs 1187 crore, up by 23% year-on-year (Rs 965 crore during the year-ago period). In dollar terms, Cyient reported revenues worth $168.9 million, a 12.5% growth.

“With focus on driving execution on S3 strategy our rigor on solutions development continues. This quarter, Cyient Systems and Solutions (CSS), our JV with BlueBird Aerosystems, won a bid from an Indian Defence unit to supply SpyLite HAASS systems for high altitude surveillance. As part of this bid CSS will supply two systems through the year. Our New Business Accelerator (NBA) Program focused on technology driven solutions continues to make good progress with all projects on track for commercial development. The NBA is expected to accelerate Cyients EPS (earnings per share) growth over the next few years,” Krishna Bodanapu, managing director and chief executive officer, was quoted saying in a press release.

The companys design led manufacturing (DLM) services segment saw 27% growth sequentially.

Cyient said it expects a double digit growth in services business; while DLM business is likely to grow in high double digits. “We also expect double digit growth in operating profit through the year. Our operating margin (stood at 13.7% in Q2) is expected to marginally improve through the year driven by operational improvements and upsides from exchange rates, some of which will be offset by wage hikes and investments we make through the year,” said Bodanapu.

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