Cyient: Q3 Results Better Than Expected

The IT service mid-cap company, Cyient announced its third quarter results yesterday. The company’s December quarter result was better than expected. The stock of the company showed a positive reaction and surged by more than 7 per cent after announcement of the result.

The company posted revenue of Rs 7118 million during the December 2014 quarter, with a good revenue growth of 5.9 per cent on quarterly basis and 23.1 per cent on yearly basis. The company’s USD revenue stood at USD 114.7 million and too showed a good growth of 3.5 per cent on quarterly basis and 23 per cent on yearly basis.

Cyient showed a good performance on operating profit front. The company posted operating profit of Rs 1157 million with a good growth of 7.1 per cent on quarterly basis. The operating margins increased to 16.3 per cent during Q3FY15 with a growth on 19 basis points on sequential basis. The company’s net profit showed a handsome growth of 11.8 per cent on sequential basis and 45.3 per cent on yearly basis during the period under review. Further, its net profit margin too showed expansion to 14.2 per cent during December quarter by 80 basis points.

Commenting on the results, Krishna Bodanapu, Managing Director and Chief Executive Officer, Cyient said “Q3 was another strong quarter for Cyient on all operating parameters including revenue, margin and free cash flow. While we faced a significant headwind with lower working days across all geographies, we witnessed good growth in demand, which translated to revenue growth, better utilization and ultimately better profitability.”

Ajay Aggarwal, Chief Financial Officer, Cyient said that “Our recent acquisitions are spanning well and are tracking either in-line or better than the expectations, and focus on relevant acquisitions will continue. We continue to invest in growth along with optimization of our cost structure and improvement in cash generation.”