Cyient rose 2.38% to Rs 970 after the IT firm reported a 11.54% rise in consolidated net profit to Rs 115 crore in Q1 June 2021 (Q1 FY22) as against Rs 103.10 crore in Q4 March 2021 (Q4 FY21).
Consolidated revenues slipped 3.19% to Rs 1,058.20 crore in Q1 June 2021 compared with Rs 1,093.10 crore in Q4 March 2021. Profit before tax jumped 14.04% to Rs 153.50 crore in Q1 FY22 as against Rs 134.60 crore in Q4 FY21. The Q1 result was declared after trading hours yesterday, 15 July 2021.
The company's consolidated net profit soared 41.3% while net sales advanced 6.7% in Q1 June 2021 over Q1 June 2020.
The group revenue stood at $143.5 million, recording a growth of 9.9% Y-o-Y (year-on-year) and de-growth of 4.2% Q-o-Q (quarter-on-quarter) (4.3% in CC). Services revenue was at $119.3 million, registering a growth of 6.3% Y-o-Y (year-on-year) and de-growth of 0.3% Q-o-Q (quarter-on-quarter) (0.4% in CC). DLM (design-led manufacturing) revenue stood at $24.2 million, registering a growth of 31.7% Y-o-Y (year-on-year) and de-growth of 20% Q-o-Q (quarter-on-quarter). EBIT margin at 13.1% up by 797 bps Y-o-Y and 48 bps Q-o-Q, highest ever in the last six years. Free Cash Flow generation for the quarter at Rs 84.80 crore, a conversion of 43.6% on EBITDA (conversion of 73.7% on PAT). Cash and cash equivalents stood at healthy level of Rs 1526.20 crore.
Commenting on the Q1 results, Krishna Bodanapu, the managing director (MD) and chief executive officer (CEO) of Cyient, has said that: "Our Q1 FY22 results are in line with our expectations considering this has been a significantly challenging quarter with COVID-19 Wave 2 impact. We recorded a revenue of $143.5 million a decline of 4.2% Q-o-Q and a growth of 9.9% Y-o-Y. Services business recorded a revenue of $119.3 million, a decline of 0.3% Q-o-Q and a growth of 6.3% Y-o-Y. The non-Aerospace services business is growing 14.4% Y-o-Y with Communications and Utilities BU, Energy, Industrial and Plant Engineering and Medtech driving the growth. We expect the growth momentum in the Aerospace services business to pick up through the year. The DLM business recorded a revenue of $24.2 million, a decline of 20% Q-o-Q and a growth of 31.7% Y-o-Y. The EBIT margin at 13.1% was higher by 48 bps Q-o-Q and 797 bps Y-o-Y, due to better operational efficiency. The EBIT margin recorded was the highest ever in last six years."
"We continue to focus on improving operational efficiency and executing actions to bring growth back in the business. We won a number of large deals, which sets us up for a stronger performance through the year. Our Order Intake (OI) grew by 20% Y-o-Y with aerospace showing significant improvement in OI. This quarter we launched CyientifIQ, an innovation platform to strengthen our technology solutions offering across industries through innovation and collaboration with customers & ecosystem. To drive co-innovation with its partner ecosystem, Cyient has also collaborated with leading minds in academia, like IIT Hyderabad, on NB-IoT SoC (Narrowband Internet-of-Things System-on-Chip) design. We launched a gender-neutral parental leave policy as a part of our initiative to find unique and substantive ways to attract and engage our people. Along with this, I am proud of the landmark progress we have made towards being more environmentally sustainable and culturally inclusive enterprise."
"Outlook for Q2 and the rest of the year remains strong due to the order intake and backlog in various verticals. We continue to hold our outlook for FY22 and expect double-digit growth in services business for the year. The DLM business will also grow ~20%. We are confident of having strong growth from Q2 onwards. Profitability will continue to increase quarter on quarter through the year along with free cash generated. The new digital business unit continues to demonstrate rapid growth. Q1 was a good start to what promises to be a strong year," he added.
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Cyient is a global engineering and technology solutions company.
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