Why Cyient DLM stock fell 7% despite strong Q2FY25 results; reasons here

Don't want to miss the best from Business Standard?

Shares of Cyient DLM slipped 6.64 per cent at Rs 652.70 a piece on the BSE in Monday’s intraday trade. The company’s share price tanked despite a decent showing in quarterly earnings for the second quarter of the financial year 2024-25 (Q2FY25).

However, on the downside the company’s PAT margin dropped 105 basis points Y-o-Y to 4 per cent in Q2FY25. The company’s total orders were also down by 147.7 crore Q-o-Q to 1,979 crore, as of September 30, 2024, the company said in its investors presentation. 

Cyient DLM's consolidated profit after tax (PAT) grew by just 5.4 per cent to Rs 15.5 crore in Q2FY25 from Rs 14.7 crore on a year-on-year basis(Y-o-Y). On a quarterly basis, the net profit was up by 46 per cent from Rs 10.6 crore registered in Q1FY25. 

The company's revenue rose by 33.4 per cent Y-o-Y to Rs 389.4 crore from Rs 291.8 crore recorded in the same quarter last year. Sequentially, the revenue surged by 50.9 per cent compared to Rs 257.9 crore recorded in Q1FY25.

The company’s earnings before interest, tax, depreciation and amortisation (Ebitda) increased by 34.4 per cent to Rs 316 crore from Rs 235 crore Y-o-Y, with the Ebitda margin staying unchanged at 8.1 per cent. 

Cyient DLM, a subsidiary of Cyient, offers a wide range of electronic manufacturing solutions across various sectors, including medical, industrial, automotive, telecommunications, defence, and aerospace. 

In addition to its electronic manufacturing capabilities, the company provides machining services for components utilised in the aerospace, automotive, and defence industries.

Cyient DLM share price history

The company’s stock has underperformed the market year to date as it has fallen 1.2 per cent, while slipping 4.3 per cent in the last one year. In comparison BSE Sensex has risen 12.2 per cent year to date and 24 per cent in a year. 

The company has a total market capitalisation of Rs 5,292.49 crore. Its shares are trading at a price to earnings multiple of 83.37 times and at an earning per share of Rs 8.39. 

At 12:17 PM, the stock price of the company declined by 4.61 per cent at Rs 666.90  a piece on the BSE. By comparison, the BSE’s Sensex was down 0.47 per cent to 80,770 level.