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Cyient Ltd: A Stable Quarter - Views on News from Equitymaster
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Cyient Ltd: A Stable Quarter
Jan 13, 2017

Cyient Ltd has announced 3QFY17 results. The company has reported a 0.4% QoQ increase in sales, while the net profit fell by 3.2% QoQ. Here is our analysis of the results.

Performance summary
  • Consolidated sales increased by 0.4% QoQ in 3QFY17. In constant currency terms, the topline was up 0.6% QoQ. In US$ terms, the topline was up 0.4% QoQ.
  • The operating performance was decent despite the seasonally weak quarter and adverse forex movements. The operating margin came in at 13.2% compared to 13.9% in 2QFY17. The operating profit decreased by 5% QoQ.
  • Depreciation was up 4.6% QoQ. Other income was up 61.4% QoQ. Finance costs were down 34.5% QoQ.
  • The net profit was down by 3.2% QoQ. The net margin fell sequentially to 10.3%.

    Consolidated financial snapshot
    (Rs m) 2QFY17 3QFY17 Change 9MFY16 9MFY17 Change
    Sales 9,136 9,171 0.4% 22,826 26,656 16.8%
    Operating expenditure 7,865 7,962 1.2% 19,689 23,080 17.2%
    Operating profit (EBDITA) 1,272 1,209 -5.0% 3,137 3,576 14.0%
    Operating profit margin (%) 13.9% 13.2% 13.7% 13.4%
    Finance costs 54 36 -34.5% 130 139 7.2%
    Other income 197 318 61.4% 827 622 -24.8%
    Depreciation 232 243 4.6% 595 698 17.4%
    Exceptional item 0 0 0 0
    Profit before tax 1,183 1,249 5.6% 3,239 3,361 3.7%
    Tax 267 322 20.6% 815 825 1.3%
    Associate profit & minority interest 56 15 -74.1% 153 118 -22.8%
    Profit after tax/(loss) 972 942 -3.2% 2,578 2,654 2.9%
    Net profit margin (%) 10.6% 10.3% 11.3% 10.0%
    No. of shares (m) 112.6
    Diluted earnings per share (Rs)* 29.7
    P/E ratio (x)* 16.8

    * On a trailing 12-months basis


    Segment-wise performance (IT services)
    Verticals 2QFY17 3QFY17 Change
    Aerospace & Defense 3,030 2,908 -4.0%
    Transportation 774 768 -0.8%
    Semiconductor 338 319 -5.6%
    Medical & Healthcare 156 155 -0.8%
    Utilities & Geospatial 1,375 1,405 2.2%
    Communications 1,795 1,854 3.3%
    Industrial, Energy & Natural resources 766 760 -0.8%
    Total IT services revenue 8,235 8,169 -0.8%
    Geography
    Americas 5,400 5,319 -1.5%
    Europe, Middle East, Africa (EMEA) 2,193 2,201 0.4%
    Asia Pacific 1,544 1,651 6.9%

    Segment-wise performance (DLM)
    Verticals 2QFY17 3QFY17 Change
    Aerospace & Defense 96 464 381.0%
    Medical 112 113 1.3%
    Communications 418 241 -42.5%
    Industrial 266 171 -35.6%
    Others 9 13 44.5%
    Total DLM revenue 902 1,002 11.2%
    Geography
    Americas 128 112 -12.3%
    Europe, Middle East, Africa (EMEA) 689 883 28.2%
    Asia Pacific 85 7 -91.7%
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Oct 19, 2017 07:33 PM

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