Cyient Q1 FY24 results: Net profit jumps 45% to Rs 168.10 crore; revenue up 35%

Cyient Ltd on Tuesday reported a 45 per cent rise, year-on-year (YoY), in its June 2023 quarter (Q1 FY24) net profit. The IT firm's consolidated profit was up 44.79 per cent to Rs 168.10 crore against Rs 116.10 crore in the year-ago period. On a sequential basis, profit came at Rs 163.20 crore.

The company's revenue from operations jumped 34.91 per cent to Rs 1,686.50 crore over Rs 1,250.10 crore in the corresponding period last year. Revenue was at Rs l,751.40 crore in Q4 FY23 (QoQ).

"In FY24, we expect DET (Digital, Engineering & Technology) revenue growth to be in the range of 15-20 per cent YoY in constant currency terms. We expect FY24 DET normalized. EBIT margins to improve by 150 – 250 basis points (bps) YoY," Cyient stated.

Krishna Bodanapu, Executive Vice-Chairman and Managing Director, said, "Cyient witnessed positive Q1 FY24 results, with quarterly group revenue at $205.30 million, growth of 28.60 per cent YoY in constant currency. Cyient Digital, Engineering & Technology (DET) business includes the erstwhile Services business (core services and acquisitions) and a small portion of Engineering Parts business which was earlier classified under DLM. DET revenue at $177.10 million, growth of 0.30 per cent QoQ and 30.60 per cent YoY in constant currency. The normalized Group EBIT margins, at 14.70 per cent, is higher by 322 bps YoY."

He further said, "We won 6 large deals in DET with a total contract potential of $48.8 million in this quarter. The order intake stood at $193.20 million, up 32.50 per cent YoY. Our pipeline for the year looks robust. We continue to strengthen our technology offerings and remain focused on building solutions across key megatrends."

The stock today settled 1.16 per cent lower at Rs 1,466.45 over its previous close of Rs 1,483.60.

On technical setup, the stock traded higher than the 50-day, 100- and 200-day moving averages but lower than the 5-day and 20-day moving averages. The counter's 14-day relative strength index (RSI) came at 53.06. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 46.25 against a price-to-book (P/B) value of 6.07.

The scrip has an average target price of Rs 1,372, Trendlyne data showed, suggesting a potential downside of 6 per cent. It has a one-year beta of 0.55, indicating low volatility on the counter.

Cyient is a global engineering and technology solutions company. It is involved in designing digital enterprises, building intelligent products, platforms and solving sustainability challenges.

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