Cyient gains as Q3 PAT soars 97% QoQ to Rs 156 cr

Cyient advanced 3.05% to Rs 910.10 after the IT company's consolidated net profit surged 97.22% to Rs 156 crore on 15.9% rise in revenue from operations to Rs 1,618.20 crore in Q3 FY23 over Q2 FY23.

On year on year (YoY) basis, the company's consolidated net profit increased by 18.4% while revenue from operations jumped 36.7% in Q3 FY23.

Consolidated PBT before exceptional items stood at Rs 214.6 crore in Q3 FY23, jumping 64.95% QoQ and up 22.77% YoY. The company's US subsidiary has incurred legal costs of Rs 8.9 crore on the antitrust lawsuit for the quarter and half year ended 31 December 2022.

The IT firm's normalised PAT jumped 47.5% quarter on quarter to Rs 162.7 crore in quarter ended 31 December 2022. Normalised Group EBIT was at Rs 209 crore with a margin of 12.9%.

During the quarter, the group EBIT was at Rs 199.3 crore in Q3 FY23, up 61.5% QoQ and 21.4% YoY. EBIT margin stood at 12.3% in Q3 FY23 compared with 8.8% in Q2 FY23 and 13.9% in Q3 FY22.

The group's constant currency revenue growth stood at 13.4% QoQ and 28.6% YoY.

The Group order intake grew by 83% QoQ. Offshoring stood at 46.2%.

Commenting on the Q2 results, Krishna Bodanapu, managing director and CEO, Cyient, said, We continue to witness strong momentum across the business, driven by key wins, robust Order Intake, and pipeline. We won 5 large deals in services with a strong total contract potential of $59.2 million this quarter. We also witnessed significant growth across key accounts, with revenue from the top 30 accounts growing at 14.9% YoY in constant currency terms. We have a strong order intake at $237 million, the highest in the last 15 quarters.

Our pipeline for the year is higher by 1.5x YoY with large deals accounting for 70% of the pipeline. This sets us out for a strong growth potential for the business. We continue to strengthen our technology offerings, focusing on building solutions across key megatrends impacting industries like Automotive, Medical, Communications, etc.

Bodanapu further added, Our outlook for the year continues to be strong, we expect double-digit growth at the group level driven by strong OI, a large deals pipeline, and growth in key accounts.

With respect to outlook, Cyient said that it expects revenue to grow in the range of 14-15% in FY23 due to acquisitions in constant currency. FY23 normalized EBITDA margin is expected to be in the range of 16-17% for the group. In FY24, the compnay has visibility to $1 billion revenue run rate.

Cyient is a consulting-led, industry-centric, global technology solutions company. It currently operates through eight strategic business units: aerospace & defense; transportation; industrial, energy, and natural resources; semiconductor, internet of things and analytics; medical and healthcare; utilities & geospatial; communications and design-led manufacturing (Cyient DLM).

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