Cyient Ltd

Cyient, formerly Infotech Enterprises, hit a new high yesterday at Rs.641 and that was even before the company declared its Q2FY16 numbers, which came in half hour after market closure. Today, the stock is expected to react to the numbers and they were good numbers. 6% (QoQ) growth in revenue at Rs.712 crore is what helped the company end the quarter with a 32% jump in net profit at Rs.98 crore. This was despite its operating profit margin coming down from 16.1% to 15.1%. Operating profit though rose 27% at Rs.116 crore. In dollar terms, revenue was up 4% at $118 million.

What really helped boost the topline as growth in volumes at Rangsons Electronics, an electronic manufacturer where Cyient holds 74% stake. This company contributed Rs.66 crore to the revenue. During the quarter, the company added 20 new clients. PR business grew 68% in US$, driven by aerospace and defense clients. At end of Q2, cash and bank balance stood at Rs.633 crore and that including Rangsons stood at Rs.652 crore. In terms of geographical growth, Americas revenue rose 0.2%, Europe, Middle East, Africa and India was flat and Asia Pacific rose 6%. Overall constant currency growth was at 5.3%.  Current Q3 saw the company generating the highest free cash flow at Rs.90 crore and cash balance at end of the quarter stands at Rs.800 crore.