Cyient Ltd

Cyient, formerly Infotech Enterprise, posted a very dull and staid, no-major-fireworks kind of consolidated numbers for Q1FY18.  It was only thanks to an other income of Rs.37 crore that the company could at least end the quarter with a 10% (QoQ) rise in net profit at Rs.85 crore. Everything otherwise was down. Revenue was down 3% at Rs.903 crore and EBITDA fell 6% at Rs.113 crore. Margins shrunk by 34 bps to 12.5%.

The company though is very exuberant about the fiscal. It expects double digit growth in services business and 20% growth in DLM business in FY18.  Even the profit is estimated to grow in double digit and margins are expected to improve by 50 bps.

During the quarter, it added 30 new customers. Attrition was at 18.5% - the lowest in 11 quarters and this could probably be attributed to the current crisis in the IT sector, with wide spread insecurity and people preferring to stick to their jobs rather than take the risk of shifting at this juncture. Free cash flow generated during the quarter was at Rs.65 crore, which is 43% of the EBITDA. Cash & cash equivalents crossed Rs.1000 crore and it stood at Rs.1032 crore.