Results for Cyient Q3: The engineering and IT services firm’s operating revenue increased 4.2% to ₹1,926.4 crore in the third quarter of the current fiscal year.
Table of Contents
Cyient Q3 Results:
On Thursday, January 23, Cyient released its October-December quarter results for fiscal 2024-25 (Q3FY25), revealing a 31.7% decline in net profit to₹122.3 crore from ₹179 crore in the previous July-September quarter of FY25. In the third quarter of the current fiscal year, the engineering and IT services company’s operating revenue increased 4.2% to₹1,926.4 crore from₹1,849 crore in the September quarter.
Higher expenses during the December quarter and decreased growth in its largest business affected Cyient. Cyient’s transportation business, which accounts for 30% of the company’s largest unit, digital, engineering, and technology, has seen slower growth in recent quarters as a result of the aerospace segment’s project start delays and the rail segment’s slowdown.
Cyient Q3 Results: Key Metrics:
During the December quarter, the Hyderabad-based company’s overall expenditures increased by 9%, driven by a 26% increase in the cost of materials used and a 6% increase in staff spending. The company’s digital, engineering, and technology segment—which accounts for almost 76% of its overall sales—saw a 1% decline in revenue.
Cyient DLM, the IT major’s smaller design-led manufacturing company, reported a 38% increase in sales. Cyient’s shares increased 6% to reach an intra-day high of ₹1,807.90 before the release of the Q3FY25 results. They then settled 2.72 percent higher at₹1,752.80 per on the BSE.
Cyient’s DET (digital, engineering, and technology) division generated ₹1,480 crore in sales, up 2.1% on a quarter-over-quarter (QoQ) basis but down 0.8% on a year-over-year (YoY) basis. DET EBIT has a margin of 13.5% and was ₹200 crore. With a net profit of ₹124 crore for the DET sector, Cyient had a 28.3% YoY decrease.
With immediate effect, Karthikeyan Natarajan resigned from his position as Cyient’s Executive Director and CEO, the company reported. In the meantime, Natarajan will oversee the company’s operations.
“Debjani Ghosh, a Distinguished Fellow at NITI Aayog and the visionary Chief Architect of the NITI Frontier Tech Hub, was inducted into the Board as an Independent Director,” Cyient informed stock markets in a regulatory filing.
“Cyient saw positive Q3 FY25 results, with quarterly group revenue at $228 million and growth of 4.5% YoY in constant currency,” stated Krishna Bodanapu, Executive Vice Chairman and Managing Director. We continue to see great growth in our semiconductor business.
In order to develop magnetic sensors and power semiconductor solutions for the automobile sector, we have strengthened our collaboration with Allegro Microsystems and set up a Center of Excellence (CoE) at our Manikonda location. According to Bodanapu, the CoE will play a key role in the development of power integrated circuit product portfolios, sophisticated driver-assistance systems, electric vehicle components, and other automotive applications.
He went on to say that the move solidifies Cyient’s standing as a top collaborator for businesses looking to create and produce innovative semiconductor goods. Additionally, we are happy to report that our Board of Directors has given its approval for us to look into other avenues for raising cash for our recently disclosed semiconductor subsidiary. This is in line with our plan to become the semiconductor industry capital-ready and spur faster growth in the short to medium term.
The October-December quarter order intake for the IT giant reached an all-time high of $312.3 million, up by 5% YoY and over 100% QoQ. Additionally, the business closed 13 significant contracts in its DET division, which helped it reach a contract value of $234.5 million for the third quarter of FY25.
