Hike in FPI limit fails to cheer investors; Cyient nosedives 9% post Q4

Bearish sentiments on Cyient can be attributed to lacklustre March 2020 (Q4FY20) quarter.

May 08, 2020 10:05 IST India Infoline News Service

Cyient
The IT-service provider Cyient has hiked the investment limit from foreign investors. However, the move which is meant for boosting capital raising, could not sway investor sentiment on Cyient share price.

At around 10.52 am, Cyient share price was trading at Rs212.80 per piece down by 8.16% on Sensex.

The stock has already touched an intraday low of Rs212 per piece, resulting in a nearly 9% drop on Sensex.

The stock opened lower at Rs219 per piece and even touched an intraday high of Rs222.70 per piece. In the previous closing, Cyient share ended much higher at Rs231.70 per piece respectively.

Cyient increased investment limits of foreign portfolio investors (FPI) from the existing 49% to 74% of the total paid-up equity share,re capital of the company.

The development is subject to regulatory and shareholders approvals.

Bearish sentiments on Cyient can be attributed to lacklustre March 2020 (Q4FY20) quarter.

In Q4, Cyient's consolidated net profit of Rs45.2cr declined by 74.4% compared to the net profit of Rs176.8cr posted a year ago same period. Meanwhile, consolidated revenue stood at Rs1,073.6cr in Q4, down by 7.7% from Rs1,162.9cr in Q4FY19.

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