Cyient to sell its entire stake in Infotech Enterprises Information Technology Services

Cyient provides engineering solutions, including product development and life-cycle support, process, Information Technology(IT), network and content engineering to major organizations. They provide services to multiple industries such as Aerospace, Consumer, Energy, Medical, Heavy Equipment, HiTech, Transportation, Telecom and Utilities. The company features among the top 30 outsourcing companies in the world.

Cyient has signed a definitive agreement to sell its entire stake in Infotech Enterprises Information Technology Services, a wholly owned subsidiary engaged in IT services, with an intent to focus on its core engineering services and DNO businesses. The impact of this transaction on earnings per share (EPS) is expected to be neutral.

Recently Cyient posted a good y-o-y result in first quarter Fy16, where the total income rose by 16.8 per cent to Rs 726 crore compared to 622 crore in the first quarter of last fiscal, the EBITDA increased by 5.64 per cent to Rs 92 crore but the EBITDA margin contracted by 134 basis points to 12.7 per cent. During the quarter the other income of the company rose by 119.5 per cent to Rs 29 crore. The net profit of Cyient in Q1FY16 rose by 9.22 per cent to Rs 74.83 crore as against Rs 68.5 crore in Q1FY14.

As per June FY16, the promoters holding in the company stood at 22.21 per cent, FII holdings increased by 167 basis points to 37.31 per cent and DII holdings reduced by 133 basis points to 12.3 per cent compared to last quarter of FY15..

Cyient is currently trading at Rs. 569.35, up around 1 per cent from its previous closing of Rs. 564.05.