Cyient's stock plunges 9% after weak Q1FY25 results; check details here

Shares of engineering research and development firm fell as much as 8.99 per cent at 1724 per share on the BSE in Friday''s intraday trade

Cyient's stock falls after Q1FY25 results: Shares of engineering research and development firm, Cyient fell as much as 8.99 per cent at 1724 per share on the BSE in Friday'’s intraday trade. 

This came after the engineering service provider Cyient reported a 23.8 per cent sequential drop in net profit for the first quarter of the financial year 2024-25 (Q1FY25), amounting to Rs 144 crore. On a year-on-year (YoY) basis, the profit declined by 18.6 per cent.  

For Q1, Cyient's revenue decreased by 0.6 per cent YoY and 9.9 per cent sequentially, totaling Rs 1,675.7 crore. The digital, engineering, and technology (DET) segment, which constitutes over 80 per cent of the company's revenue, reported Rs 1,414 crore, a decline of 5 per cent quarter-on-quarter and 2.8 per cent year-on-year. 

Further, The DET segment’s earning before interest, tax (Ebit) margin stood at 13.5 per cent, down 260 basis points year-on-year

“We had a challenging Q1, however we remain confident that with our balanced portfolio and investment in technology solutions, we will achieve growth in the mid-to-long term to deliver value to stakeholders,” said Karthikeyan Natarajan, executive director and chief executive officer, Cyient. 

The management also said that its eyeing flattish DET revenue growth for FY25 in constant currency terms due to the Q1 FY25 impact. However, the management was optimistic on the turnaround in the second half of the current fiscal. 

“Our top customer engagement grew double digit YoY and our FY24 exit order intake was also double digit higher YoY. We won 5 large deals in DET with a total contract potential of $52.4 million in this quarter. With this, we are confident that we have taken steps to align the supply to the demand. We believe this will translate into improved revenue realisation and drive a sharp recovery of growth through the coming quarters,” stated, Krishna Bodanapu, executive vice chairman and managing director, Cyient. 

The firm has a total market capitalisation of Rs 19,434.14 crore, according to BSE. The company’s shares are trading at a price to earnings multiple of 42.25 times with an earning per share of Rs 44.84.

At 10:10 AM; the shares of the company were trading 7.33 per cent higher at Rs 1755.40 per share on the BSE. By comparison, the BSE Sensex was down marginally by 0.60 per cent at 80,523 levels.