Cyient hits a new high

Cyient, formerly Infotech Enterprises is the current top gainer on the BSE. The stock opened higher with a gap of Rs.20, which was its intra day, going on to  hit a new 52-week high at Rs.512.20. Volumes are up almost two times.

This Hyderabad based company is reacting positively to the very good set of Q1FY15 numbers it posted yesterday. It posted a net profit at Rs.90 crore, up 32% (QoQ) and this very good growth was led by a 8% growth in revenue at Rs.672 crore.  EBITDA for the quarter came in at Rs.108 crore, up by 23% and the market was most enthused by the expansion in EBITDA margin – 16.1% v/s 14.1% in current Q1. In terms of growth in dollar revenue, growth was at 7%, at US$111 million.

During the quarter, the company added 220 employee, taking the total employee count to 12,759. In terms of geographical growth, North America, its main growth engine, contributing 64% to the topline, showed a growth of 12%. But on the other hand, contribution from other geographies – Europe, Middle East, Africa and India fell from 29.3% to 27.4%.

In terms of clients, it added 19 new customers during the quarter though contribution from Top 5 and Top 10 of its customers has come down in Q2.  Its cash balance, including liquid investments at end of current Q2 stood at Rs. 718.4 crore. The company has also signed a definitive agreement to acquire a majority stake in Invati Insights, a start-up data sciences company.