Cyient hits 52-week high on strong FY18 outlook

The stock rallied 9% to Rs 569 on the BSE in intra-day trade after the company said it expect to deliver a double digit earnings growth in FY18.

Cyient  rallied 9% to Rs 569 on the BSE in intra-day trade after the company said it expect to deliver a double digit earnings growth in the financial year 2017-18 (FY18).

“Our outlook for FY18 is strong, backed by a strong pipeline and order backlog. We expect a double digit growth in our services business while the design led manufacturing or DLM business is expected to grow around 20%. The margins are expected to improve by 50bps driven by improvements in operational efficiency through the year,” said Krishna Bodanapu, managing director and chief executive officer of Cyient.

The company reported 6.7% quarter on quarter (qoq) growth in dollar revenue at $150 million in September quarter (Q2FY18). Net profit grew by 27.2% at $17.3 million sequentially. The operating margin for the quarter stood at 14.6%, an increase of 56bps year on year and 181bps qoq.

At 01:38 PM; the stock was up 6% at Rs 553 on BSE, as compared to 0.77% rise in the S&P BSE Sensex. A combined 4.26 million shares changed hands so far against an average sub one million shares that were traded daily in past two weeks on the BSE and NSE so far.