Mid-cap IT firm Cyient released its Q1FY24 financial results on July 25. The company reported a consolidated net profit of ₹168.10 crore, marking an impressive 45% increase from ₹116.10 crore in the same period last year. However, the engineering and IT services firm fell just short of analysts’ expectations due to the impact of rising expenses, despite a strong order pipeline and recovery in some sectors.
In terms of revenue, Cyient’s revenue from operations during the Q1FY24 saw significant growth, with ₹1,686.50 crore, a substantial 35 per cent rise from ₹1,250.10 crore in the corresponding period of the previous year.
Looking ahead, Cyient expressed its outlook for fiscal year 2023-24, expecting the revenue growth in their Digital, Engineering & Technology (DET) segment to be in the range of 15-20% YoY in constant currency terms. Furthermore, they anticipate a YoY improvement of 150-250 bps in normalized EBIT margins for the DET segment.
According to their the Executive Vice-Chairman and Managing Director of Cyient, the company’s positive Q1 FY24 results were highlighted by a quarterly group revenue of $205.30 million, showing a remarkable 28.60% YoY growth in constant currency. The DET business of Cyient encompasses the former Services business (including core services and acquisitions) and a portion of the Engineering Parts business that was formerly classified under DLM.
During the quarter, Cyient secured 6 major deals in the DET segment, with a total contract potential of $48.8 million. The order intake for the quarter reached $193.2 million, a significant 32.5% increase YoY. With a strong pipeline for the year ahead, Cyient remains optimistic about its future prospects.
Lately, the stock price has been seeing nice traction.