Cyient Q1 net profit rises 9.2% to Rs 74.8 crore

IT firm Cyient, earlier known as Infotech Enterprises, today reported 9.2 per cent rise in net profit at Rs 74.8 crore for the quarter ended June, 2015 as against Rs 68.5 crore in the same quarter last year.
The Hyderabad-based company saw its revenues rising 16.8 per cent to Rs 726.2 crore in the said quarter from Rs 621.7 crore in the corresponding quarter last year.
On a sequential basis, the firm's net profit declined 20.3 per cent to Rs 93.8 crore from Rs 730 crore in January-March, 2015 quarter.
"The financial performance is in line up with the expectations. Growth was muted in the services business and revenues were lower than expected in Rangsons," Cyient CEO and Managing Director Krishna Bodanapu said.

Cyient had acquired 74 per cent stake in Rangsons.
Business pipeline continues to remain strong and Cyient is confident that revenue momentum will accelerate in next quarter, he added.

In dollar terms, Cyient's net profit increased 2.8 per cent to USD 11.8 million, while revenues were up 9.9 per cent to USD 114.3 million in the quarter under review.
"We were able to improve operating margins during the quarter despite wage hike with operational improvements and this momentum on margin improvement continues to be the focus area during the year," Cyient CFO Ajay Aggarwal said.
The salary increases have been in line with the industry and peer companies, he added.

The company added (gross) 697 people and 26 customers during the quarter. Its attrition rate increased to 18.8 per cent from 15.3 per cent on sequential basis.
Among geographies, Americas accounted for 44.6 per cent of the revenues; Europe, Middle East, Africa & India contributed 37 per cent and Asia Pacific contributed 18.4 per cent, respectively.