Cyient Ltd's Q1FY19 consolidated net profit declines 30.3% qoq to Rs82.50cr: Misses Estimates

The company’s consolidated revenue stood at Rs1,080 cr, up 1.7% qoq and 19.5% yoy.

Jul 12, 2018 01:07 IST India Infoline Research Team

Cyient Ltd Q1FY19

Consolidated Results Q1FY19: (Rs in cr)

Q1FY19 qoq (%)
Revenue 1,080 1.7
EBIT 103.10 [16.5]
EBIT Margin (%) 9.5 [208]
Net Profit  82.50 [30.3]
***EBIT margin change is bps

Cyient's numbers for Q1FY19 were below street expectations. Revenue in rupee terms grew 1.7% qoq to Rs1,080cr, which is broadly in-line with the consensus estimate of Rs1,088cr. Its US revenue declined 2.3% qoq to $161mn. EBIT came in at Rs103cr, down 16.5% qoq against the consensus estimate of Rs121cr; EBIT declined by 208bps qoq to 9.5%. Reported PAT declined by 30.3% qoq to Rs83cr against the consensus estimate of Rs103cr. There were exceptional items during Q4FY18 of Rs3.2cr pertaining to the issuance of RSUs, the adjusted decline on qoq basis was 32.1%.
  • Revenue in constant currency (cc) terms declined 1.4% qoq
  • Services revenue grew 1.1% qoq cc, while DLM business witnessed de-growth of 52.1% qoq cc due to cyclicality in the business
  • Growth was driven by transportation, which grew 4.5% qoq on the back of strong momentum in key accounts and new project wins and strong growth in semiconductor vertical
  • Inclusive of Ansem, consolidated for two months, the qoq growth for semiconductor vertical was 39.1%, driven by strong traction in existing clients and new client wins
  • Aerospace & defense witnessed a growth of 4.7% qoq
  • Utilities & geospatial and communications underperformed, registering 12.5% qoq and 3.2% qoq de-growth, respectively
  • Americas grew by 4.6% qoq, while EMEA and APAC declined 15.3% qoq and 1.2% qoq, respectively
  • Lower offshore mix and utilizations impacted margins by 120bps, while wage hike impacted margins by 70bps. Forex upside movement (60bps) negated by one-off expenses, including M&A (40 bps) and SG&A absorption (30 bps)
  • DLM EBITDA margins came in at 4.6%
  • The company has maintained its FY19 guidance numbers

Technical View:

Cyient Ltd ended the day at Rs742, up 6.05 points, or 0.82%, from its previous close of Rs735.95 on the BSE. The scrip opened at Rs743.60 and touched a high and low of Rs750 and Rs731, respectively. A total of 7,39,474 (NSE+BSE) shares were traded on the counter. The stock traded above its 50-DMA.

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