Cyient gains 5% as Q2 consolidated Ebit margin grows 586 bps QoQ to 11%

In the past month, Cyient has underperformed the market by falling 13 per cent, as compared to a 1.5 per cent rise in the S&P BSE Sensex till Thursday.

Shares of Cyient were up 5 per cent to Rs 383 on the BSE on Friday after the company reported 586 basis points (bps) expansion in consolidated EBIT (earnings before interest tax) margin at 11.0 per cent in September quarter (Q2FY21) on a sequential basis. The improvement in margins was led by higher utilisation, lower subcontracting cost, and lower restructuring cost. Consolidated revenue grew 1.3 per cent quarter-on-quarter (QoQ) in constant currency terms.

In rupee terms, revenue grew by 1.2 per cent QoQ to Rs 1,003 crore while EBIT grew by 116.2 per cent QoQ off a very low base to