Cyient zooms 12 % post Q2 earnings beat

Mid-tier IT company, Cyient Ltd., has come out with its Q2 earnings just before the market closing time on Thursday. Cyient surprised the streets by reporting an increase in profits by 31 per cent led by margin expansion.

Total income from operations has grown 9.4 per cent to Rs 914 crore during the quarter under review as against Rs 835 crore in preceding quarter. The company reported strong revenue growth of 10.3 per cent in constant currency terms. Company has reported its highest ever incremental revenue addition in any quarter.

"Operating profit margins have improved by around 100 basis points to 14 per cent on QoQ despite the headwinds on FX, salary hike and one off 25 years’ celebration expenses,” Cyient said in a press release.

Cyient saw robust utilisation, which stands at 78 per cent for the quarter, up 4.5 per cent sequentially. Geography wise, APAC & EMEA posted a robust growth of 17 per cent & 11 per cent Q-O-Q in dollar terms respectively. There were 23 new customers added during the quarter in review.

Cyient also declared an interim dividend of Rs 3 per share.

Reacting to a fairly strong set of Q2 earnings share of Cyient spiked up in trade to hit an intra-day high of Rs 554 i.e representing an increase of 13 per cent before closing the day at Rs 542 on NSE.