Mr. Krishna Bodanapu, MD and CEO, Cyient said “Q2 FY 17 results are in line with our expectations on both revenue and margin. The growth in the quarter was entirely organic and doesn’t include any inorganic revenue or any one time revenue. We grew by 9.5% in dollar terms and 10.3% in constant currency over the previous quarter. Most of the impact due to currency (Pound) depreciation occurred in the Transportation and Utilities & Geospatial (U&G) BU due to high portion of revenue from the UK. Growth in the BUs was led by Communications which grew by 24% over the previous quarter and U&G which grew by 14% over the previous quarter. In addition to this our DLM business grew by 34% over the last quarter and our top 20 customers revenue grew by 9% QoQ. Our operating margin at the group level also improved by ~100 bps despite wage hike impact and one off expenditure on 25 years celebrations. The improvement in operating margins was majorly driven by utilization improvement and operational efficiency initiatives across the business.”
- Strong Revenue growth of 10.3% in constant currency; Highest ever incremental revenue addition in any quarter ~$12 Mn; At US$ 136.5 Mn up by 9.5% QoQ in $ terms; highest in 22 quarters
- Operating profit at RS.1,283 Mn; highest ever in any quarter
- Operating margin improvement by ~100bps QoQ despite the headwinds on FX, Salary hike and one off 25 years celebration expenses
- Net profit RS.973 Mn up by 31.5% QoQ, despite the headwinds on FX and one off 25 years celebration expenses
- Robust utilization stands at 78% for the quarter up 4.5% QoQ
- Declared an interim dividend ofRS.3.0/Share, on face value ofRS.5 each.
This is over and above the special dividend of 50% i.e. 2.5/Share which was declared and paid in August 2016 for 25 years completion by Cyient
KEY HIGHLIGHTS: Q2, FY 2017
Financial Highlights
- Q2 FY17 Revenue stood at RS. 9,136 Mn, up by 9.5% QoQ
- Incremental revenue addition in a Quarter at US$11.8 Mn; Highest ever
- Strong constant currency growth of 10.3%; Highest ever in any quarter
- Operating Margin at 14.0%, up by ~100 bps QoQ
- Net Profit for Q2 FY17 is Rs.973 Mn; up by 31.5% QoQ
Business Highlights
- Robust growth in most of the businesses viz. Communication (24%), U&G (14%), Medical & Healthcare (7%) and DLM (34%) in $ terms
- APAC & EMEA posted a robust growth of ~17% & 11% QoQ in $ terms respectively (15% and 14% in constant currency respectively)
- Americas grew by ~7% QoQ in $ terms
- 23 customers added during the quarter
- Strong business outlook backed by pipeline and Order intake growth YoY
By EB Bureau
