Cyient’ s CFO says the company witnessed highest-ever revenue, operating profit, FCF and PAT for a quarter in Q2 FY19
Cyient Limited- a global provider of engineering, manufacturing, geospatial, network, digital and operations management solutions to global industry leaders – has released its consolidated financial results for the second quarter (Q2) of FY 2019 ending September 30, 2018.
The Hyderabad-based company witnessed the highest-ever revenue ($168.9Mn), operating profit (₹1,626Mn), FCF (₹1,585Mn) and PAT (₹1,271Mn) in Q2 FY19 for a quarter, according to Ajay Aggarwal, President & CFO, Cyient Limited.
It also witnessed a strong growth of 6.5% QoQ and 14.5% YoY in constant currency driven by growth across Aerospace and Defense, Transportation, Industrial, Energy and Natural Resources (IENR) and Semiconductor, IOT and Analytics (SIA) business units.
The services business witnessed a growth of 3.5% in constant currency while DLM business witnessed a growth of 27%.
Q2 Business Highlights
In the second quarter of FY 2019, Cyient Systems and Solutions (CSS), the company’s joint venture with BlueBird Aerosystems, won a bid from an Indian Defence unit to supply SpyLite HAASS systems for high altitude surveillance. As part of this bid, CSS will supply two systems through the year.
The company’s New Business Accelerator (NBA) Program focused on technology driven solutions continues to make good progress with all projects on track for commercial development.
“The NBA is expected to accelerate Cyient’s EPS growth over the next few years,” said Krishna Bodanapu, Managing Director and Chief Executive Officer, Cyient.
Other business achievements attained in the Q2 include opening its Experience Centre at Blacktown in Australia, extending Pune Facility to accommodate growth in John Deere and launch of TRM at Farnborough Airshow 2018.
Awards & Recognitions
This quarter, Cyient was recognized as the Top IT/ITES Exporter in the Rs 1,000 crore export category by HYSEA and its Chairman, BVR Mohan Reddy was also conferred with a Lifetime Achievement Award at the 26th HYSEA Awards.
The company was also named as one of the Top 20 most promising Aerospace Tech Solutions Providers by CIO Review.
“We were selected for our ability to illustrate the functionality of services, systems, and solutions, and for being at the forefront of impacting the aerospace market. Cyient was identified as a ‘Major Contender” in the Everest Group Verification & Validation engineering services Peak Matrix 2018 in the quarter,” Bodanapu noted.
Expressing happiness on reporting yet another very strong quarter, Bodanapu stressed that their outlook for FY 19 continues to remain strong and expects a double digit growth.
“We expect a double digit growth in our services business, our DLM business will grow in high double digits. We also expect double digit growth in operating profit through the year. Our operating margin is expected to marginally improve through the year driven by operational improvements and upsides from exchange rates, some of which will be offset by wage hikes and investments we make through the year,” he added.
