Cyient hits new high

Cyient yesterday, after market hours presented its earnings for Q3FY21 and the market today morning was thrilled. From its close of Rs.507.45, the stock opened with a gap to soon hit a new high at Rs.584, with an over 6-times surge in volumes.

Its consolidated dollar revenue showed a 5% (QoQ) growth at $141 million and 4% in constant currency at Rs.1044 crore. Its services revenue was more or less flat at Rs.852 crore while design-led manufacturing or DLM grew 24% at Rs.192 crore.

It ended the quarter with a net profit at Rs.95 crore, up 14% - primarily from higher other income (Rs.13 crore) partially offset by higher tax from higher profits & increase in finance charges

Consolidated EBIT margin was at 11.2% up by 14 bps; EBIT margin for services was at 11.3%, down 88 bps –wage hike and furlough impact. DLM reported its highest ever EBIT margin at 10.6%, up 594 bps QoQ - driven by better revenue mix.

Order intake in Q3 was at $194.5 Mn, increased by 53%.

The company expects sequential improvement in margins in Q4FY21, driven by the increase in volume and improvement in operational efficiencies.