Cyient Q4 net up 34% on robust growth in US biz

Revenues for the quarter under review stand at Rs 730 cr, as against Rs 595 cr in the corresponding period in the previous year, reflecting a growth of 22.7%

Cyient Limited (formerly Infotech Enterprises Limited), a Hyderabad - based IT and engineering services company, witnessed a 34.4 per cent increase in its net profit to Rs 93.83 crore for the fourth quarter ended March 2015, as compared with Rs 69.83 crore during the same period a year ago.

Revenues for the quarter under review stood at Rs 730 crore,  as against Rs 594.8 crore in the corresponding period in the previous year, reflecting a growth of 22.7 per cent.

For the full year ended March 2015, Cyient posted a profit after tax of Rs 353.3 crore, as against Rs 266 crore, up 33.2 per cent. Revenues grew 24 per cent to Rs 2,735.9 crore, as against 2,206.4 crore.

Attributing the growth in top line and profitability to the continued growth trajectory in the US market, BVR Mohan Reddy, executive chairman of Cyient, and also chairman of Nasscom, told mediapersons here on Thursday that the company grew by over 10 percentage points, as against Nasscom’s guidance of 12-14 per cent for FY16.

“The US is showing tremendous amount of strength,” he said, adding Cyient’s board of directors had recommended a 160 per cent dividend on shares with a face value of Rs 5 each. This includes the interim dividend of Rs 3 per share announced in September 2014, he said.

According to Krishna Bodanapu, president and managing director of Cyient, while the US contributed 63.4 per cent to the revenues, Asia-Pacific and EMEA regions accounted for 9.3 per cent and 27.3 per cent, respectively.

Eyes European firm in aerospace

Cyient, which has cash to the tune of Rs 656 crore as on March 2015, is looking at acquiring firms to strengthen its core competencies besides in areas which it needs to scale up presence. ”Right now, aerospace accounts for one-third of our overall revenues. Aerospace is the area, in Europe, where we are looking at acquiring companies," Reddy said.