Cyient Q4 Results: Net profit rises 16% YoY, revenue beats estimates on resilient client demand

WHY IT’S IMPORTANT

India’s $254 billion IT sector has been struggling in recent quarters as clients cut spending on non-essential projects.

However, engineering and tech services companies such as Cyient have been able to tide over as they focus on providing services to the transportation, mining and energy sectors, whereas larger IT services firms, including Tata Consultancy Services and Infosys, mainly cater to sectors such as banking, financial services, and insurance (BFSI).

Analysts expect Cyient’s deal wins in the fourth quarter from Airbus and Deutsche Aircraft to help its maintain engineering and technology growth in the aerospace segment in fiscal 2025.

BY THE NUMBERS

Consolidated revenue rose 6.3% to 18.61 billion rupees ($223.4 million) in the January-March period, beating analysts’ estimate of 17.27 billion rupees, as per LSEG data.

The company’s digital, engineering and technology segment accounted for 80% of its overall revenue.

Net profit climbed 15.9% to 1.89 billion rupees for the period.

KEY QUOTES

“For FY25, our order book looks strong and we will continue to focus and invest on strengthening our intelligent engineering and technology solutions across key industries and megatrends,” Managing Director Krishna Bodanapu said.

“We are also confident that our presence in key industry verticals through our balanced portfolio will help us deliver balanced outcomes in the evolving market and geo-political uncertainties.”

($1 = 83.3049 rupees)

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Published: 25 Apr 2024, 06:36 PM IST