Cyient Q4 results: Profit jumps 5.8%; Rs 16 dividend announced; Prabhakar Atla new CFO

IT firm Cyient on Thursday reported a 5.83 per cent year-on-year (YoY) rise in net profit at Rs 163.20 crore for the March quarter compared with Rs 154.20 crore in the same quarter last year.

Revenue for the quarter came in at Rs 1,751.40 crore, the IT firm said. This is against Rs 1,181.20 crore sales it recorded in the corresponding quarter last year.

The IT firm expects FY24 consolidated Services revenue growth to be in the range of 15-20 per cent YoY in constant currency (CC) terms. It sees FY24 consolidated services normalised EBIT margin to improve 100-200 basis points on YoY basis.

Cyient said a consolidated civil class action antitrust lawsuit was filed in a US District Court against one of the company's US subsidiaries, among various other companies. It was alleged in the suit that the defendants agreed to restrict the employment of individuals. The company's US subsidiary incurred legal costs of Rs 16.20 crore on the antitrust lawsuit for the quarter ended March 31.

Normalised profit increased 8.2 per cent YoY to Rs 176 crore, it said, primarily due to higher revenue and lower taxes. 

The company board has recommended a final dividend of Rs 16 per share for FY23.

Cyient said markets continue to be volatile and news continues to be dominated by geopolitical changes, soaring wage inflation, higher interest rates, talent shortage, and potential signs of economic slowdown.

"Notwithstanding, engineering companies are on innovation spree with top focus on time to market, development and adoption of technology. With technologies disrupting the status quo in short sprints, three areas that are having huge scope for growth are autonomous world (IPP – Integrated Products & Platforms), Digital Enterprise and Sustainability. Demand for engineering / Tech services continues to increase as many companies are defining their strategies for core in-house activities influenced by shortage of talent," it said.

Cash and cash equivalents, including long-term treasury investments, stood at Rs 1.077.20 crore at the end of March quarter compared with Rs 869.40 crore in the year-ago quarter.

In a separate filing, Cyient said the company board took note of retirement of Ajay Aggarwal, Chief Financial Officer, effective April 20, 2023 and appointed Prabhakar Atla, who has expertise in engineering and business finance, planning and analysis, to the post with effect from April 20.

Ahead of its results, shares of Cyient closed the day at Rs 1,091.45 on BSE, up 2.02 per cent.