Cyient shares climb 10% to hit record high, breach Rs 1,500 level for 1st time ever. Here's why

Shares of Cyient climbed 10 per cent in Friday's trade to hit a record high, taking their winning streak to third day amid high volumes. The stock has been rising ever since the company fixed record date for final dividend. Besides, there has been optimism over the IT firm's business prospects. Analysts noted that Cyient significantly outperformed its peers in the tier 2 IT pack in the fourth quarter, delivering a constant currency revenue growth of 6.6 per cent. While announcing quarterly results in April, Cyient also gave a positive guidance, expecting FY24 consolidated Services revenue growth to be in the range of 15-20 per cent YoY in constant currency (CC) terms.

Cyient expected FY24 consolidated services normalised EBIT margin to improve 100-200 basis points on YoY basis. The scrip is up 28 per cent in the last one month and 83 per cent year-to-date.

On Friday, the stock rose 9.92 per cent to hit a record high Rs 1,507.70 on BSE. This was the third straight day of rise for the stock.

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The IT firm recently fixed June 12 as the cut-off date for the purpose of final dividend and evoting in connection with the Annual General Meeting of the company scheduled to be held on June 21.

"It is further informed that the board of directors of the company have recommended a final dividend of Rs 16 per equity share (320 per cent) on par value of ₹ 5.00 per share for the financial year ended 31 March 2023 to those members as on record date (12 June 2023) subject to the approval of members at the ensuing Annual General Meeting of the company. The dividend will be paid within 30 days from the date of AGM," Cyient said.

For the March quarter, the IT firm reported a 5.83 per cent 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. Excluding an one-off expenses, normalised profit was up 8.2 per cent YoY at Rs 176 crore, Revenue for the quarter came in at Rs 1,751.40 crore, the IT firm said. This was against Rs 1,181.20 crore sales it recorded in the corresponding quarter last year. Analysts said there was a significant beat in terms of revenue and margins.

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