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Cyient posts 27% rise in profit after tax

Hyderabad: Hyderabad-based mid-size IT company Cyient Limited’s profit after tax (PAT) posted a growth 26.9 per cent quarter-on-quarter at Rs 111.4 crore for the second quarter of financial year 2017-18 from Rs 97.3 crore in the same period last year. Meanwhile, the revenues grew by 6.4 per cent at Rs 965.4 crore from Rs 913.6 crore in the corresponding period. This growth, according to the company, was led by transportation and communication at 31 per cent and 16 per cent year-on-year growth in dollar terms respectively.

Commenting on the results, Krishna Bodanapu, MD and CEO, Cyient said, “Q2 FY18 was in line with our expectations both on revenue and margin. We recorded the highest-ever revenue in the quarter and this was driven by communications, transportation and aerospace and Defence business units. The Design Led Manufacturing (DLM) business continues to improve in performance and delivered double digit growth YoY.”

Elaborating further Ajay Aggarwal, chief financial officer, Cyient said, “We signed an agreement to acquire B&F Design Inc. to strengthen our aerospace service offering and also divested our stake in IASI to remain focused in our pursuit. We continue to act on investor feedback and have increased our dividend payout from 30 per cent to 40 per cent.”

In terms of geographies, while the Americas accounted for 54.2 per cent of revenues, the Asia Pacific region saw almost a three per cent increase from 16.9 per cent in second quarter of FY’17 to 19.1 per cent in Q2 FY’18. The IT company added 300 plus employees since the September 2016 to September 2017 with attrition rate of 16.8 per cent.

Going ahead, Cyient plans to set up a new centre in Hyderabad (near Lanco Hills) and it is expected to be ready by fourth quarter, the company said in a statement. It is also expanding its centre of excellence (CoE) with additional capacity of 100 seats for a key transportation customer.

“Our outlook for FY18 is strong, backed by a strong pipeline and order backlog. We expect a double digit growth in our services business while DLM business is expected to grow around 20 per cent. Our margins are expected to improve by 50bps driven by improvements in operational efficiency through the year. We expect to deliver a double digit earnings growth in the year,” Bodanapu added.

Aggarwal informed that the company will continue to focus on organic and inorganic strategic investments and expects this momentum to continue in FY18. “Cyient will continue to focus on growth, improvement in operating margin, cash generation and thus maximising well rounded focus on the value for our shareholders,” he informed.

The post Cyient posts 27% rise in profit after tax appeared first on Telangana Today.

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