Cyient Q2 PAT slumps 32% QoQ to Rs 79.10 cr

The IT company's consolidated net profit tumbled 31.87% to Rs 79.10 crore while revenue jumped 11.69% to Rs 1,396.20 crore in Q2 FY23 over Q1 FY23.

On year on year (YoY) basis, the company's consolidated net profit dropped 34.8% while revenue from operations surged 25.6% in Q2 FY23.

Consolidated PBT before exceptional items stood at Rs 130.1 crore in Q2 FY23, declining 18.43% QoQ and down 19.49% YoY. The company's US subsidiary has incurred legal costs of Rs 21.6 crore on the antitrust lawsuit for the quarter and half year ended 30 September 2022.

The IT firm's normalised PAT declined 5% quarter on quarter to Rs 110.3 crore in quarter ended 30 September 2022. Normalised Group EBIT was at Rs 166.1 crore with a margin of 11.9%. The company said that the normalised EBIT and PAT exclude the impact of exceptional items and one-off M&A expenses.

During the quarter, the group EBIT was at Rs 123.4 crore in Q2 FY23, down 14.01% QoQ and down 20.8% YoY. EBIT margin stood at 8.8% in Q2 FY23 compared with 11.5% in Q1 FY23 and 15.5% in Q2 FY22.

The company's constant currency revenue growth stood at 10% QoQ and 20.4% YoY.

The Group order intake grew by 58.6% YoY. Offshoring stood at 48%.

Commenting on the Q2 results, Krishna Bodanapu, managing director and CEO, Cyient, said, We continue to witness strong momentum across the business, driven by key wins, robust Order Intake, and pipeline. We are confident about delivering positive results through the year, driven by growth in key accounts and a strong order pipeline. We continue strengthening our technology offerings, focusing on building technology solutions across key megatrends impacting industries like Automotive, Medical, Communications, Semiconductors, etc.

Bodanapu further added, With E R&D spending estimated to exceed US$ 1.7 Trillion by 2025, organizations worldwide are already leveraging their assets to prepare for the future. The research report we released highlights the Megatrends that will see definitive technology disruption by 2030. This is part of Cyient's push to ensure that our customers receive the best in technology innovation to ensure that their businesses are sustainable and futureproof.

With respect to outlook, Cyient said that it expects revenue to grow in the range of 13-15% in FY23 in constant currency for the Group. EBIT Margin for the full year is expected to be in the range of 13% to 14%.

Meanwhile, the IT company's board has declared an interim dividend of Rs 10 per equity share for the finanacial year 2022-23. The record date for the same is 27 October 2022 and the dividend will be paid by 9 November 2022.

Cyient is a consulting-led, industry-centric, global technology solutions company. It currently operates through eight strategic business units: aerospace & defense; transportation; industrial, energy, and natural resources; semiconductor, internet of things and analytics; medical and healthcare; utilities & geospatial; communications and design-led manufacturing (Cyient DLM).

Shares of Cyient were down 0.39% to Rs 770.05 on the BSE.

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