Cyient Q1 net profit up 9.22% at Rs 74.83 crore

Revenues stood at Rs 726.31 crore, an increase of 16.83%

Hyderabad-based IT solutions provider Cyient Limited has reported a 9.22 per cent increase in net profit at Rs 74.83 crore for the quarter ended June 30, 2015 as compared with Rs 68.51 crore in the corresponding quarter last year, largely helped by foreign the exchange gains. The two quarters are not strictly comparable as the financials of the quarter under review also includes that of an acquisition made in February, according to the company.

The revenues for the quarter under review stood at Rs 726.31 crore, an increase of 16.83 per cent over Rs 621.70 crore in the corresponding previous quarter.  Other income, which was accrued by way of foreign exchange gain, stood at Rs 28.92 crore as compared to Rs 13.17 crore in the corresponding quarter last year.

Expenses grew by 18.25 per cent on the back of rise in employee costs and other expenses during the quarter.  The operating margins were down to 12.6 per cent as compared with 14.1 per cent in the year ago period.

Commenting on the results, Mr. Krishna Bodanapu, managing director and chief executive officer, said, “Financial performance in in the first quarter was in line with expectations. Growth was muted in the services business and revenues were lower than expected in Rangsons (acquired in February 2015). This was expected especially considering the seasonality in Softential & Rangsons. Business pipeline continues to remain strong and we are confident that revenue momentum will accelerate from Q2 onwards”. The company has added 26 new clients during the quarter.