Result Analysis: Cyient Limited

Result Analysis: Cyient Limited

Result Update: Q3FY23

Cyient Limited is a leading global engineering, manufacturing, and digital technology solutions company. The company is engaged with customers across their value chain helping to design, build, operate and maintain the products and services offered by the company. Its major business units include Aerospace & Defence, Transportation, Industrial, Energy and natural resources, Semiconductor, Internet of things and Analytics, Medical and Healthcare, Utilities & Geospatial, Communications and Design led manufacturing. It has presence in 19 countries with 15,000+ associates serving to over 300 customers worldwide.

 

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Shareholding Pattern:

Shareholding Pattern
Promoters & Promoter Group	23.37%
FIIs	32.62%
DIIs	23.69%
Public	19.35%
Others	0.98%

Outlook:

Cyient Limited has shown robust performance in the latest quarter, and is expecting Q4 organic revenue in cc to be higher than Q3 driven by growth in Aerospace, Mining, and Communications & Automotive, the company will add 14-15% in FY23 revenue due to acquisitions in cc which was upgraded from last quarter’s expectations of 13-15%, FY23 normalized EBIT margins are expected to be in the range of 13-14%, FY23 normalized EBITDA margins are expected to be in the range of 16-17% for the group, Q4 normalized EPS is expected to be in the range of ₹15-16 , in FY24, the company has a visibility to project $1 Bn revenue run rate, and the FY24 EPS is expected to be atleast ₹60.

Results:

Particulars (In Rs. Cr.)	Q3FY23	Q2FY23	Q3FY22	QoQ %	YoY%
Revenue from Operations	1,618.20	1,396.20	1,183.40	15.90%	36.74%
Other Income	27.50	19.7	22.1	39.59%	24.43%
Total Income	1,645.70	1,415.90	1,205.50	16.23%	36.52%
Employee Benefit Expenses	825.10	563.2	454.1	46.50%	81.70%
Employee benefit Expenses as % of Sales	50.99%	40.34%	38.37%	26.40%	32.88%
EBIT	208.40	166.1	164.2	25.47%	26.92%
EBIT Margin (%)	12.88%	11.90%	13.88%	8.25%	-7.18%
Profit After Tax	162.70	110.3	131.7	47.51%	23.54%
PATM (%)	10.05%	7.90%	11.13%	27.27%	-9.66%
EPS (in Rs.)	14.9	10.1	12.1	47.52%	23.14%
Segment Revenue (In Rs. Cr.)	Q3FY23	Q2FY23	Q3FY22	QoQ %	YoY%
Services	1,379.80	1,206.80	967.40	14.34%	42.63%
Design Led Manufacturing (OLM)	238.40	189.60	216.10	25.74%	10.32%

Geography Revenue %	Q3FY23	Q2FY23	Q3FY22
America	48.10%	50.70%	54.20%
Europe, Middle East & Africa	32.80%	28.00%	28.10%
Asia Pacific (Including India)	19.00%	21.30%	17.80%

Source: Company website, EWL Research

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