Cyient Q1 net profit up 26% to Rs 68.5 cr

IT firm Cyient, formerly known as Infotech Enterprises, today said its net profit has grown 26.1 per cent to Rs 68.51 crore for the quarter ended June 30, 2014 on the back of broad-based growth across all operating units and geographies.
This is against a net profit of Rs 54.31 crore in the same quarter last year, Cyient Ltd said in a statement.
The Hyderabad-based saw revenues rising 28.5 per cent to Rs 621.7 crore for the said quarter from Rs 483.93 crore in the year-ago period.
In dollar terms, Cyient's net profit increased 18.7 per cent to USD 11.5 million, while revenues were up 20.8 per cent to USD 104 million in the quarter under review.

"For the third consecutive quarter, we have shown business momentum with robust quarter-on-quarter growth in revenues. This gives me confidence that we have put the challenges of last year behind us and are now on a continued growth momentum," Cyient CEO and M D Krishna Bodanapu said.
This is further confirmed by the order pipeline and backlog that is in place, he added.

"While margins declined on account of the appreciation of the rupee and salary increases, I am confident that we are actively working on the levers of margin to improve the same over the course of the year, starting in Q2," he said.

On sequential basis, the company net profit declined 1.9 per cent (from Rs 69.83 crore in January-March 2014 quarter), but revenues grew 4.5 per cent (from Rs 594.8 crore).
The engineering operating unit grew 4.6 per cent q-o-q, while communications business and data transformation group rose 2 per cent and nine per cent sequentially, respectively.
Of the company's quarterly revenues, Americas accounted for 60.9 per cent, while Europe, Middle East, Africa and India contributed 29.3 per cent.
Asia Pacific, which accounted for 9.8 per cent of the revenues, grew in double-digit at 12.3 per cent q-o-q, it said.
Cyient's cash balance, including liquid investments, stood at an all-time high of Rs 735.8 crore.

The company added 1,014 (gross) and 445 (net) employees during the quarter.
"Due to wage hike and exchange impact, our operating margin moderated q-o-q. However, positive other income and improved tax rate, helped us to regain this impact at net profit level," Cyient CFO Ajay Aggarwal said.