Cyient Q1 net profit up 26 per cent

Revenues during the quarter under review reflected an increase of 28.46%

Hyderabad-based information technology company Cyient Limited (formerly Infotech Enterprises Limited) witnessed a 26.14 per cent growth in net profit to Rs 68.51 crore for the first quarter ended June 2014, as compared with Rs 54.31 crore in the corresponding quarter last year.

Revenues during the quarter under review stood at Rs 621.7 crore, as against Rs 483.93 crore reported during the same period a year ago, reflecting an increase of 28.46 per cent. Operating margin was at 14.1 per cent, as compared with 16.6 per cent in the corresponding quarter last year.

“For the first time in the history of the company, we crossed revenue of $100 million in a single quarter. And, this we have achieved without taking into account the additional revenue to the acquisition of US-based Softential last quarter,” Krishna Bodanapu, managing director and chief executive officer of Cyient, said in a release today.

“While margins declined on account of the appreciation of the rupee and salary increases, I am confident that we are actively working on the levers of margin to improve the same over the course of the year, starting in Q2.”

At the end of the first quarter, Cyient had cash balance, including liquid investments, of Rs 735.8 crore. The company has seen a net addition of 445 employees. It added nine customers during the quarter.

Cyient Limited’s scrip ended the trade at Rs 335 on the BSE, down 1.47 per cent, over the previous close of Rs 340 a share.