Business Standard

Monday, December 23, 2024 | 01:58 PM ISTEN Hindi

Notification Icon
userprofile IconSearch

Cyient tumbles after weak Q4 numbers

Image

Capital Market

Cyient skid 7.32% to Rs 214.75 after consolidated net profit slumped 58.26% to Rs 45.20 crore on a 2.92% decline in net sales to Rs 1,073.60 crore in Q4 March 2020 over Q3 December 2019.

Consolidated profit before tax slipped 38.75% to Rs 86.30 crore in Q4 March 2020 as against Rs 140.90 crore in Q3 December 2019. Total tax expenses for Q4 March 2020 rose 20.42% to Rs 40.10 crore as compared to Rs 33.30 crore incurred in Q3 December 2019, which includes a one-time charge arising out of the estimated impact of the Taxation Laws (Amendment) Ordinance 2019 of Rs 5.60 crore and other adjustments of Rs 9.20 crore, including expected impact of settlement of past litigations under the Vivad Se Vishwas Scheme 2020. The result was declared after trading hours yesterday, 7 May 2020.

 

The board of Cyient has approved the increment in the aggregate investment limits of foreign portfolio investors from the existing 49% to 74% of the total paid up equity share capital of the company, subjected to regulatory approvals and approval of shareholders.

The total number of 'million-$' clients for Q4 March 2020 stood at 22 as compared to 13 in Q3 December 2019 and 5 in Q4 March 2019. Voluntary attrition for Q4 March 2020 stood at 18.9% as compared to 19.7% in Q3 December 2019 and 19.9% in Q4 March 2019. Cash and cash equivalents slipped 7.04% to Rs 951.80 crore in Q4 March 2020 from Rs 1,023.90 crore in Q3 December 2019.

Speaking on the Q4 performance, Krishna Bodanapu, the managing director and chief executive officer (CEO), has said that, "Our performance was below expectations both on revenue and margin terms largely due to the impact of COVID which was significant on many parts of our business. Our revenue for the quarter stood at $149.2 Mn, 3.7% lower QoQ in constant currency. Services revenue at $132.3 Mn is lower by 5.4% in constant currency due by de-growth in Utilities and Semiconductor businesses, and was offset by an increase in the Aerospace & Defense business. The DLM revenue at $17 Mn was higher by 12.4% QoQ. Our Gross margin at 33.5% was lower by 248 bps QoQ with significant impact due to the shortfall in revenue. DLM gross margin at 13.3% was lower due to changes in revenue mix. Lower utilization during the quarter due to COVID preparedness also impacted the margin. Our EBIT margin was lower by 120 bps mainly due to a volume drop."

"For the year, our revenue stood at $ 625.2 Mn which is 5.3% lower YoY. Services revenue at $550.7 Mn was lower by 5.1% YoY while DLM at $74.6 Mn was lower by 6.6%.Degrowth in the services business was driven predominantly by A&D, Communication and Portfolio BUs."

"We are focused on accelerating business growth and have strengthened our leadership team with the appointment of Karthik Natarajan as the President & Chief Operating Officer and Felice Gray-Kemp as Sr. Vice President & General Counsel. With both joining us we will strengthen our focus on winning new business, especially in digital focused, IP-driven solutions and services. We will continue to strengthen our capabilities across business verticals and realign ourselves to achieve growth through these challenging times," he added.

Cyient is engaged in providing software-enabled engineering and geographic information system (GIS) services.

Powered by Capital Market - Live News

Disclaimer: No Business Standard Journalist was involved in creation of this content

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: May 08 2020 | 9:57 AM IST

Explore News