Cyient jumps on earnings

Cyient is showing a lot of action today morning, with volumes surging almost 6 times within minutes of the opening bell. In fact there was more volume traded close to the high price. It touched an intraday high of Rs 635, up almost 8.5%.

The market is pretty enthused with the company’s performance for Q4FY19. The Hyderabad based company posted a net profit of Rs.188 crore, which more than doubled from Rs 92 crore in Q3FY19. Though this was on a 2% (QoQ) decline in revenue at Rs.1163 crore.

The company ended FY19 with a 18% rise in net profit at Rs.478 crore on a 18% increase in revenue at Rs.4617 crore.  What truly helped the jump in the bottomline is the surge in other income at Rs.98 crore, mainly on account of tax incentives on export of services merchandise.  There was also an increase in realised gains by Rs.6 crore and unrealised gains of Rs.41 crore.

Growth in EBITDA was flat but margin rose from 14.7% to 15.1% (QoQ).

The company said in the ensuing Press Release that it has seen its highest-ever group annual revenue at $ 660 million, an increase of 9% in dollar terms and 10% in constant currency terms. As at 31st March 2019, tts cash and cash equivalents stood at Rs.998 crore.

Looking ahead, for FY20, the company expects a high single digit growth for Services in constant currency and DLM business is expected to grow by ~15% in constant currency. It also estimates a double digit growth in EBIT.

At end of Q4FY19,  Cyient had 15,084 employees.