Cyient Q3FY25 results: Net profit declines to Rs 122 cr on higher costs

Indian engineering and technology firm Cyient reported a third-quarter profit below analysts' expectations on Thursday, hurt by slower growth in its biggest segment and higher costs.

Its profit declined to Rs 122 crore ($14.12 million) for the three months ended Dec. 31, from Rs 147 crore a year ago. Analysts had expected Rs 171 crore, according to data compiled by LSEG. 

Growth in Cyient's transportation division - which contributes 30 per cent to the company's biggest unit, digital, engineering and technology - has eased over the past few quarters due to delays in project starts in the aerospace segment and slowdown in the rail segment.

The downbeat results also echo those of peer engineering, research and design companies (ER&D) Tata Elxsi and L&T Technology Services.

ER&D services, which include providing technology support to industries such as aerospace, telecom and automotive, contribute a sixth of the revenue to India's $254-billion technology sector.

Cyient's total expenses rose 9 per cent during the quarter, led by a 26 per cent jump in its cost of materials consumed and a 6 per cent rise in employee expenses.

Revenue from the company's digital, engineering and technology segment, which contributes more than 76 per cent to its total revenue - fell 1 per cent.

Its smaller design-led manufacturing business, Cyient DLM, posted a 38 per cent rise in revenue.

Cyient's total revenue rose 5.7 per cent to Rs 1,926 crore, beating analysts' estimates.