Cyient clocks 19% rise in Q1 net

Hyderabad: Cyient, a global provider of engineering, manufacturing, geospatial, network and operations management, recorded a revenue of $140.6 mn for the first quarter of FY18 registering an increase of 12.8 percent on YoY and a decrease of 0.2 percent on QoQ. It posted 18.7 per cent rise in net at Rs 87.8 crore for the June quarter from the Rs74 crore in the year-ago period.

However, it suffered marginal drop in operating margins. The company attributed the reason for fall in margins to currency headwinds and wage hikes during the quarter. Krishna Bodanapu, MD and CEO, said: “Q1 FY18 was in line with our expectations both on revenue and margin. The growth in our services business was driven by communications, transportation and semiconductor business units.

The Design Led Manufacturing (DLM) business continues to improve in performance and delivered a double digit growth YoY. This quarter we also recorded an operating margin of 12.8 percent, a dip of 29bps on YoY and 50bps on QoQ due to wage hikes and currency headwinds.”

Its services revenue was highest ever at $128.8 Mn a growth of 3.2 percent QoQ. The Hyderabad-based IT company’s total income rose 8.6 per cent to Rs 907 crore during the reporting quarter, while it reported a fall of 0.29 per cent in operating margin to 12.8 per cent.

Its cash has crossed Rs 1,000 crore, while it opened one center in Bengaluru to cater to the aerospace customers and began operations in Prague as well for the same sector. Ajay Aggarwal, CFO, said: “For the first time, Cyient crossed a cash of Rs10 bn.”