CYIENT Q3 Result Update:
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Gross Margins of 37.8%.
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Voluntary Attrition of 26.5%.
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Acquisitions made by the company are accretive at the EBITDA level.
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Effective Tax Rate at 24.1%.
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FCF Generation for the quarter stood at 124.7 cr. which is 40.9% of EBITDA & 76.6% of Net Profit.
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Services Segment: Segment is doing very well. Organic & Inorganic Growth from this segment has been 4% & 8% respectively. EBIT Margin was 13.9%. Improvement in margins was due to better operational metrics and volume impact.
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Filed IPO for Design Lead Manufacturing unit.
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Aerospace Rail Communications Unit: Very nominal Growth in this segment. Aerospace unit, Rail Unit is expected to have double digit growth in the coming quarters. In communication unit, growth is expected in network transformation, modernization in areas like fiber roll out, wireless & 5G.
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Mining Energy Utilities: Opportunities seen in Automation, Robotics Solutions and Global efforts to decarbonize and energy transition efforts.
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Semiconductor Segment will see improvement in next 2-3 quarters.
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Hitech Segment: Growth will be led by Geo AI and system integration capabilities.
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Healthcare Segment: Continuous investments opportunities in proactive and personalized patient care, connected devices and digital platforms.
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During the quarter, they recorded an order intake of $237.1 million, a growth of 83.4% QoQ and 18.2% YoY, respectively.
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Future Commentary by Management: The management guided for higher revenue growth momentum to continue in Q4 FY23 led by organic growth in aerospace, mining, communications and automotives segments. The EBITDA margin for FY23 is expected to be in the range of 16%-17%. Deal Pipeline is quite huge as they have 5 large deal wins in the services segment. Guiding that Q3 will be better than Q4. Q4 normalized EPS will be Rs.15-16. Confident of getting mid-size average growth within the next year. FY24 planning to achieve $1BN annual revenue with an EPS of at least Rs. 60.
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