Cyient profit falls 2.2 pc to Rs 97.2 cr in July-Sept

IT firm Cyient, formerly known as Infotech Enterprises, today reported 2.2 per cent fall in net profit to Rs 97.2 crore for the quarter ended September 30, 2016.
The Hyderabad-based company had posted a net profit of Rs 99.4 crore in the July-September, 2015 quarter.
Cyient saw its revenues growing 18.3 per cent to Rs 913.6 crore in the said quarter from Rs 772.4 crore in the second quarter of financial year 2015-16.
The revenue includes the excise duty as per new reporting guidelines and the previous quarter numbers are restated for like to like comparison.
"Q2 FY17 results are in line with our expectations on both revenue and margin. The growth in the quarter was entirely organic and doesn't include any inorganic revenue or any one time revenue. We grew by 9.5 per cent in dollar terms and 10.3 per cent in constant currency over the previous quarter," Cyient Managing Director and CEO Krishna Bodanapu said.

Most of the impact due to currency (pound) depreciation occurred in the transportation and utilities and geospatial (U&G) business unit due to high portion of revenue from the UK, he added.

"Our operating margin at the group level also improved by about 100 basis points despite wage hike impact and one off expenditure on 25 years celebrations. The improvement in operating margins was majorly driven by utilisation improvement and operational efficiency initiatives across the business," he said.
The company's outlook for the year remains unchanged, backed by strong pipeline and order intake growth.
Cyient has declared an interim dividend of Rs 3 per share. This is over and above the special dividend of 50 per cent ie Rs 2.5 per share which was declared and paid in August 2016 for 25 years completion by Cyient.

In terms of geography, Asia Pacific and Europe, Middle East and Africa (EMEA) saw sequential growth of about 17 per cent and 11 per cent, respectively. Americas grew by 7 per cent in dollar terms quarter-on-quarter.
The company added 23 customers added during the quarter. It had 13,216 employees at the end of September 2016 quarter.
The attrition at 22.7 per cent for the quarter was higher than the company's plans.
"While the attrition is at 22.7 per cent for quarter.. Is higher than our plans, the business and growth plans are intact due to robust plan in place to mitigate the impact on business," Cyient said.

It added that the company is working to bring the attrition level back to 17-18 per cent by the fourth quarter.