Cyient Q2 Net rises 9.3 per cent to Rs 98.5 crore

IT firm Cyient, formerly known as Infotech Enterprises, today reported 9.3 per cent jump in net profit to Rs 98.5 crore for the quarter ended September 30, 2015.
The Hyderabad-based company had posted a net profit of Rs 90.1 crore in the July-September, 2014 quarter.
Cyient saw its revenues growing 14.8 per cent to Rs 771.6 crore in the said quarter from Rs 672.3 crore in the second quarter of financial year 2014-15.
"Budget cuts at couple of large customers impacted some growth. But, with strong business pipeline across our services business and Rangsons and we are confident that revenue momentum will continue in the third quarter and beyond," Cyient MD and CEO Krishna Bodanapu said in a statement.

He added that there is good growth momentum in the overall business and operational efficiency improvement initiatives are showing good results.
Earlier this year, Cyient had acquired 74 per cent stake in Mysore-based electronic manufacturing services (EMS) provider Rangsons Electronics to strengthen its end-to-end capabilities in integrated engineering design and production.

In dollar terms, net profit was up 1.8 per cent to USD 15.1 million, while revenue grew 6.9 per cent to USD 118.4 million in the said quarter from the year-ago period.
Cyient declared an interim dividend of Rs 3 per share.
Data Transformation, Network and Operations (DNO) revenue was up 0.1 per cent sequentially, while engineering revenue was flat, the statement said.

Among geographies, Americas revenue was up 0.2 per cent quarter-on-quarter, while that from Asia Pacific grew 6.2 per cent sequentially.
Europe, Middle East, Africa and India revenues were flat quarter-on-quarter.
The company had a total headcount to 12,026 people at the end of September, 2015. Its voluntary attrition rate stood at 21.6 per cent, while involuntary attrition rate was at 3.2 per cent in the quarter under review.
The firm added 20 customers during the quarter with seven in the engineering segment, 10 in DNO and three in Product Realization (PR- including Rangsons).
The cash balance, including liquid investments, stood at Rs 633.1 crore, while that including Rangsons was at Rs 652.3 crore.

Cyient's shares closed 6.74 per cent up at Rs 625.65 apiece on the BSE.