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Cyient skid after Q1 PAT drops 25% QoQ to Rs 116 cr

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Capital Market
Last Updated : Jul 22 2022 | 12:51 PM IST

Cyient declined 2.58% to Rs 777 after the IT company consolidated net profit slipped 24.71% to Rs 116.10 crore while net sales rose 5.83% to Rs 1,250.10 crore in Q1 FY23 over Q4 FY22.

On year on year (YoY) basis, the company's consolidated net profit rose 1% while revenue from operations surged 18.1% in Q1 FY23 over Q1 FY22.

Profit before tax stood at Rs 159.50 crore in Q1 FY23, down 23.5 quarter on quarter (QoQ) and up 3.9% YoY.

During the quarter, the group EBIT was at Rs 143.50 crores in Q1 FY23, down 16% QoQ and up 3.4% YoY. EBIT margin stood at 11.5% in Q1 FY23 compared with 14.5% in Q4 FY22 and 13.1% in Q1 FY22.

The company's constant currency revenue growth stood at 4.4% QoQ and 15.8% YoY.

The Group and Services order intake grew by 18% YoY. The company has achieved largest ever Transmission Control Protocol (TCP) win in Q1 with a total of 6 Large deals amounting to $424.3 million.

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Commenting on the Q1 results, Krishna Bodanapu, managing director and CEO of Cyient, said, "Our performance this quarter has been strong with our revenue growing at over 18% YoY. Six large deals with a TCP of over $424 million are a key indicator of our customers' trust in our digital and innovation capabilities. Our robust pipeline from highperforming sectors like Communications, Mining, Healthcare Technology, and Automotive, strategic investments, and acquisitions show that our growth pillarscontinue to reap benefits for the business."

During the quarter, Cyient enhanced its plant engineering, 5G, and consulting capabilities and announced the acquisition of Citec, Celfinet, and Grit Consulting.

Total Headcount at the end of the quarter increased to 14,147, up 5.35% QoQ and up 13.79% YoY. Last twelve months (LTM) attrition rate was at 27.9% in Q1 FY23 compared with 26.2% in Q4 FY22 and 16.7% in Q1 FY22.

With respect to outlook, Cyient said that it expects revenue to grow in the range of 13%-15% in FY23 in constant currency for the Group. EBIT Margin for the full year is expected to be in the range of 13% to 14%.

Cyient is a consulting-led, industry-centric, global technology solutions company. It currently operates through eight strategic business units: aerospace & defense; transportation; industrial, energy, and natural resources; semiconductor, internet of things and analytics; medical and healthcare; utilities & geospatial; communications and design-led manufacturing (Cyient DLM).

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First Published: Jul 22 2022 | 9:48 AM IST

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