Cyient slumps after Q1 PAT slides 24% QoQ to Rs 144 cr

Cyient dropped 7.82% to Rs 1,746.20 after the IT major reported 23.94% fall in consolidated net profit to Rs 143.9 crore on 9.94% decline in revenue from operations to Rs 1,675.7 crore in Q1 FY25 over Q4 FY24.

On year on year (YoY) basis, the company's consolidated net profit declined 14.4% while revenue shed by 0.64% in Q1 FY25.

Consolidated profit before tax stood at Rs 194.6 crore in Q1 FY25, registering de-growth of 24.89% QoQ and 11.26% YoY.

The IT firm's normalised profit after tax was at Rs 147.6 crore during the quarter, registering de-growth of 25.03% QoQ and 16.93% YoY to. Normalised EBITDA stood at Rs 265.1 crore in Q1 FY25, down 20.91% QoQ and 16% YoY. Normalised EBITDA margin stood at 15.8% in Q1 FY25 from 18% in Q4 FY24 and 18.7% in Q1 FY24.

 

The companys Digital, Engineering, and Technology (DET) business delivered revenue at Rs 1,414.4 crore, recording de-growth of 5.02% QoQ and 2.76% YoY. In constant currency terms, revenue was down by 5% QoQ and 3.6% YoY.

During the quarter, Cyient DET order intake declined by 5.4% YoY.

Krishna Bodanapu, executive vice chairman and managing director, Cyient, said, We expect DET revenue growth for FY25 to be flattish YoY in constant currency terms due to the Q1 FY25 impact. Our top customer engagement as well as our FY24 exit order intake grew double-digit 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 realization and drive a sharp recovery of growth through the coming quarters.

The announcement of Cyients Semiconductor subsidiary marks a significant step forward in our commitment to innovation and excellence across the global semiconductor landscape. Our dedicated approach to turnkey ASIC design and chip sales positions us well to capitalize on the opportunities within the global semiconductor. We also remain committed to strengthening our intelligent engineering solutions across key megatrends.

Karthikeyan Natarajan, executive director and chief executive officer, Cyient, said, We secured five large deals this quarter across connectivity, aerospace and sustainability. Our pipeline for the year remains strong, and we are committed to delivering intelligent engineering solutions for our customers. The new growth segments and Sustainability delivered growth YoY.

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. I extend my gratitude to all our associates for their dedication and to our customers for their continued trust in us.

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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