Cyient hits 52-week high post Q3 results

The stock hit a 52-week high of Rs 622, up 7% on BSE in early morning trade, after the company reported 1.3% QoQ dollar revenue growth at $152 million in December quarter.

Cyient hit a 52-week high of Rs 622, up 7% on BSE in early morning trade, after the company reported 1.3% quarter on quarter (QoQ) dollar revenue growth at $152 million in December quarter. Services revenue grew 4.2% (4.4% in constant currency) on QoQ was highest ever at $139.9 million.

In rupee terms, revenue grew 1.9% to Rs 9.83 billion on sequential basis. Net profit for the quarter declined 2.4% QoQ at Rs 1.09 billion without one offs.

“Operating margin sustained at 14.6% QoQ and 116 bps expansion year on year (YoY), despite the headwind of higher pay days,” Cyient said in a press release.

“Q3 FY18 was in line with our expectations both in revenue and margin. The growth in services business was driven by utilities & geospatial (U&G), transportation, industrial, energy and natural resources (IENR) and aerospace business units. The Design Led Manufacturing (DLM) business recorded a de-growth of 23.2% due to pushout of an order to Q4,” Krishna Bodanapu, MD & CEO, Cyient said.

The outlook for FY18 is strong, backed by a strong pipeline and order backlog. We expect a double digit growth in services business while DLM business is expected to grow around 20%. The margin will improve by 50 bps driven by improvement in operational efficiency through the year. We expect to deliver double digit earning growth in the year, he added.

At 11:00 AM; the stock was up 5% at Rs 609 on BSE, as compared to 0.44% rise in the S&P BSE Sensex. A combined 490,540 shares changed hands on the counter on BSE and NSE so far.