Cyient Q4 PAT grows 8% QoQ to Rs 103 cr

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On a consolidated basis, Cyient’s net profit rose 8.07% to Rs 103.10 crore on 4.67% rise in net sales to Rs 1,093.10 crore in Q4 FY21 over Q3 FY21.

The group revenue stood at $149.9 million in Q4 FY21, growing of 6% Q-o-Q (quarter-on-quarter) (4.7% in CC) from Q3 FY21 and 0.4% Y-o-Y (year-on-year) in Q4 FY20. Services revenue was at $119.60 milion in Q4 FY21, rising 3.7% Q-o-Q (2.2% in CC) from Q3 FY21. DLM revenue during the quarter stood at $30.3 million, jumping 16.4% Q-o-Q, while recording a growth of 78.6% Y-o-Y.

The consolidated normalized EBIT margin stood at 12.6% in Q4 FY21; up by 148 bps Q-o-Q. Services EBIT during the quarter stood at 13.6%, up by 233 bps Q-o-Q driven by improvement in operational metrics (209 bps), positive impact of volume on SG&A and depreciation (96 bps) partly offset by net increase in SG&A (71 bps). DLM margins was at 8.8% in Q4 FY21, down by 181 bps Q-o-Q primarily due to change in revenue mix.

The board has recommended final dividend of Rs 17 per share for the FY 2020-2021.

Commenting on the Q4 results, Krishna Bodanapu, the managing director (MD) and chief executive officer (CEO), said: Q4 FY21 performance was in line with our expectations. We delivered growth of 6% Q-o-Q and 0.4% Y-o-Y. Our services revenue at $119.6 mn was higher by 3.7% Q-o-Q driven by the Semiconductor and Mining & Natural Resources (MNR) sectors. The Aerospace and Defense sector witnessed a growth of 3.9% Q-o-Q. The Design Led Manufacturing (DLM) business recorded the highest ever revenue with a growth of 16.4% Q-o-Q. The EBIT margin at 12.6% was the highest in the last 5 years due to better efficiency and change in revenue mix. For FY21 we recorded revenue of $556.8 mn lower by 10.9% Y-o-Y. While services revenue dropped by 16.2% Y-o-Y, DLM witnessed a growth of 28.3% Y-o-Y. The EBIT margin at 10.1% was higher by 85 bps Y-o-Y.

This year we also delivered the highest ever Free Cash Flow (FCF) in a year at Rs 761 cr primarily due to reduction in services DSO by 20 days and lower capex. We continue to strengthen our capabilities across key focus areas and in line with our growth focus we launched the Design for Circularity consulting and engineering practice. This practice will focus on supporting industries in transitioning towards greater sustainability. We also launched INTELLICYIENT our industry 4.0 suite of solutions focused on asset intensive industries such as mining, manufacturing, aerospace, automotive etc. We will continue to invest in our key growth areas such as Digital, Embedded Software, Geospatial, and Networks.

For FY22, we are confident of double-digit growth. The aerospace business is on the recovery path and we expect the momentum to continue through the next year. Our DLM business is also expected to witness double digit growth. We also expect EBIT margin to improve next year by about 200 bps. We will continue to focus on operational efficiency and cash management and expect cash conversion to continue in line with the current year, Mr Bodanapu signed off.

Cyient is a global engineering and technology solutions company. The company leverages digital technologies, advanced analytics capabilities, domain knowledge, and technical expertise to solve complex business problems.

Shares of Cyient lost 0.99% to Rs 681.15 on BSE. The stock traded in the range of Rs 670 to Rs 720 so far.

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