Cyient spurts after strong Q3 performance

Cyient surged 11.63% to Rs 566.45 after the IT firm's net profit rose 13.8% to Rs 95.4 crore on a 4.1% increase in revenue to Rs 1044.3 crore in Q3 FY21 over Q2 FY21.

In dollar terms, consolidated revenue stood at $141.4 million for the quarter; up 4.7% quarter-on-quarter (QoQ) and down 8.9% year-on-year (YoY). In constant currency, revenue was up 4.1% QoQ.

EBIT improved by 5.5% to Rs 116.5 crore in Q3 December 2020 from Rs 110.5 crore in Q2 September 2020. EBIT margin was at 11.2% as on 31 December 2020 as against 11% as on 30 September 2020.

Profit before tax in Q3 FY21 stood at Rs 124.8 crore, up by 14.4% from Rs 109.1 crore in Q2 FY21. Tax expenses during the quarter increased by 16.7% year-on-year (YoY) to Rs 29.4 crore.

The company's order intake in Q3 FY21 stood at $194.50 million, registering a sequential improvement of 52.8%.

Cyient won 5 multi year deals with total contract potential of $106 million. The company won 3 large deals worth $50 million with top 5 telecom companies, bagged a deal in design led manufacturing (DLM) worth $36 million and secured a deal from a Med Tech company worth $20 million.

At the end of Q3FY21, the IT firm's employee strength stood at 12,187. Cash & cash equivalent were at Rs 1431.30 crore as on 31 December 2020.

Commenting on the results, Krishna Bodanapu, managing director and chief executive officer, said "We continue to focus on improving operational efficiency and executing actions to bring growth back in the business. We won a number of large deals which sets us up for a stronger performance in the coming quarters. Our Order Intake (OI) for the quarter has increased by 7% YoY backed by strong growth in key clients and digital opportunities. The new organization structure implemented in the last quarter is settling in well and we see increased growth traction with opportunities in key industries. We continue to strengthen our relationship with our existing clients.

We expect the recovery in the business through Q4 FY21 with services business growing sequentially driven by growth across all segments except Aerospace & Defense which is expected to remain flat. Our outlook for FY21 remains unchanged wherein we expect a double-digit de-growth in revenue."

Cyient is a global engineering and technology solutions company. The company leverages digital technologies, advanced analytics capabilities, domain knowledge, and technical expertise to solve complex business problems.

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