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Cyient Reports the Quarter with Continued Growth in Revenue, Profit and Cash

Performance in line with outlook for FY19 with progress in A&D, Transportation and IENR

 

  • Highest ever group annual revenue at $660Mn; growth of 8.7% in $ terms, 10.1% in CC terms; group revenue at Rs 46,175 Mn, growth at 17.9%
  • Highest ever annual operating profit at Rs 6,443; growth of 17.3% post NBA investments.
  • Highest ever services operating margin at 16.4% for last 20 quarters, growth of 120 bps YoY.
  • Services revenue at $146.9Mn; growth of 1.7% QoQ (1.4% in CC), 2.9% YoY.
  • Group operating margin at 15.1% – highest in the last 20 quarters; expansion of 33 bps QoQ.

 

Cyient, a global provider of engineering, manufacturing, geospatial, network, digital and operations management solutions to global industry leaders,  reported its consolidated financial results for the fourth quarter (Q4) of FY 2019 ending March 31, 2018.

Financial highlights for FY2019:

  • Services revenue at $580 Mn; growth of 6.3% (7.6% in CC).
  • DLM revenue at $79.7Mn; growth of 29.3%.
  • Highest ever normalized profit after tax at Rs4898 Mn; growth of 14.0%.
  • Highest ever Free Cash flow at Rs3770 Mn.
  • Free Cash Flow conversion at 48.4%.
  • Highest ever final dividend at Rs9/share, Rs15/share for the full year.
  • Including buy back of Rs200 crores, the pay-out is 82%.

For Q4 FY19:

  • Lowest ever ETR at 15.2%; lower by 719 bps QoQ, 651 bps YoY.
  • Highest ever normalized Profit After Tax (PAT) at Rs1881 Mn; growth of 104.2% QoQ; 54.7% YoY.

Business Highlights:

  • YoY revenue growth in A&D, Transportation and IENR stood at 5%, 9% & 6% respectively.
  • NAM & APAC YoY revenue growth of 2%, 23% respectively.
  • Rolled out a portfolio of services and solutions for 5G deployment.
  • Selected by UK power portal networks to develop an outage planning portal.
  • Tripartite MoU with the Government of Telangana and Telangana State Aviation Academy (TSAA) for Drone Pilot Training and Certification Programs.
  • Launched Cybersecurity Security Operations Centre (SOC).
  • 16 NBA programs in full swing Proposal submission and advanced level discussion on a few projects with customers.
  • Balance 26% in Cyient DLM Pvt. Limited purchased.

Commenting on the results, Mr. Krishna Bodanapu, Managing Director and Chief Executive Officer, said, “Our performance was lower than the initial expectations both on revenue and margin. Our revenue for the quarter stood at $165.2 Mn which was a 3.3% growth YoY and 0.3% degrowth QoQ in constant currency. In USD our revenue for the quarter was flat QoQ. We recorded the highest group operating profit margin of 15.1% since the acquisition of Cyient DLM. This was achieved due to operational efficiencies; incremental bill days and lower SG&A spend in the quarter. We also recorded our highest ever services revenue this quarter driven by Semiconductor, Utilities & Geospatial and Transportation business segments. Our Design led Manufacturing (DLM) BU witnessed a de-growth mainly on account of our defocus from non-margin generating clients and push out of an order due to documentation issues.”

Commenting on the results, Mr. Ajay Aggarwal, President & CFO, said, “I am pleased to share that for FY19, we saw a strong and a well-rounded performance with earnings growth of 14% (Normalised EPS at Rs43.4) and operating profit growth of 17.3%. The revenue stood at $660 Mn with highest ever operating profit in INR terms (Rs6443 Mn) and normalised PAT (Rs4898 Mn). Healthy conversion of Free Cash Flow to EBITDA at 48.4% culminating into a highest ever Free Cash Flow of Rs3770 Mn. We also declared a highest ever final dividend of Rs10/share, taking the total dividend for the year to Rs15/ share. The company embarked on a special initiative of a buy-back of INR 200 crores which progressed well on anticipated lines.”

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