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Cyient Q1 net profit up 18.7% to Rs 87.8 cr

Press Trust of India  |  New Delhi 

IT firm Cyient today said its net profit has increased 18.7 per cent to Rs 87.8 crore for the first quarter ended June 30, 2017.

The Hyderabad-based company had posted a net profit of Rs 74 crore in the corresponding quarter a year ago, Cyient said in a statement.

Its stood at Rs 907 crore in the said quarter as against Rs 834.9 crore in the year-ago period, a growth of 8.6 per cent.

The operating profit grew 6.5 per cent year-on-year at Rs 116 crore, despite wage hike and rupee appreciation, it said.

"Q1 FY'18 was in line with our expectations both on and margin... Our outlook for FY'18 is strong, backed by a strong pipeline and order backlog," Cyient Managing Director and CEO Krishna Bodanapu said.

The company expects double-digit growth in its services business, while Design Led Manufacturing (DLM) business is expected to grow by atleast 20 per cent, he added.

"Our margins are expected to improve by 50 basis points (0.5 per cent) driven by improvements in operational efficiency through the year. We expect to deliver a double digit earnings growth in the year," he said.

In dollar terms, the company's net profit was up 23.3 per cent to USD 13.6 million, while grew 12.8 per cent to USD 140.6 million during the said quarter as against the year-ago period.

It had a total manpower of 13,206 people at the end of June 30, 2017.

Attrition at 18.5 per cent, which is the lowest in last 11 quarters, Cyient said adding that 30 new customers were added during the quarter.

Cyient's shares closed 1.36 per cent down at Rs 515.60 on BSE.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, July 13 2017. 19:09 IST