Cyient Q3 net zooms 45% to Rs 101 cr

Revenues stands at Rs 712 cr as against Rs 578 cr reflecting a growth of 23.1%

Cyient Limited (formerly Infotech Enterprises Limited), a Hyderabad-based information technology and engineering services company, witnessed a 45.29 per cent growth in its net profit to Rs 100.82 crore for the third quarter ended December 2014, as compared with Rs 69.39 crore in the corresponding quarter of the previous year.

Revenues stood at Rs 711.81 crore for the quarter under consideration, as against Rs 578.37 crore, a growth of 23.1 per cent. While the Americas contributed 65 per cent to the third quarter revenues, Africa and India, and Asia-Pacific accounted for 26.8 per cent and 8.2 per cent respectively.

“Q3 was another strong quarter for Cyient on all operating parameters, including revenue, margin and free cash flow. While we faced a significant headwind with lower working days across all geographies, we witnessed good growth in demand, which translated to revenue growth, better utilisation and ultimately better profitability,” Krishna Bodanapu, managing director and chief executive of Cyient, said in a press release.

According to Ajay Aggarwal, chief financial officer, Cyient generated free cash flow of Rs 90.5 crore, which is the highest-ever in a single quarter for it. Cyient’s free cash flow generation continued to be robust and it generated 38 per cent more free cash flow in the first nine months of the current fiscal, as compared with the first nine months of last year, he said.

As on December 31, 2014, Cyient had cash, including liquid investments of Rs 800.3 crore, as against Rs 655.4 crore in the same period a year ago.

Cyient has made an employee gross addition of 846 associates, and added 23 customers (eight in engineering, and 15 in data transformation, network and operations) during the third quarter.

The company's voluntary attrition stood at 22.7 per cent during the quarter under review, as against 14.3 per cent in the corresponding quarter of the previous year, while involuntary attrition stood at 2.6 per cent (1.9 per cent in Q3 of FY14).

The company said that of the 22.7 per cent voluntary attrition during the third quarter of the current fiscal, 9.4 per cent was an adjustment for clearing a backlog of associates who had voluntarily abandoned service (but had not been removed from the company's database).

"The real voluntary attrition without the backlog cleared is 13.3 per cent. The exercise will continue in the fourth quarter also, and we expect to return to our historical levels of 12-14 per cent for voluntary attrition," the company said. Cyient Limited's scrip is currently trading at Rs 576 on the BSE, down 0.16 per cent, over the previous close of Rs 576.90 per share.