Cyient to come up with softer Q3 with minor surge in revenue and profit

Like any other IT company, the IT consulting and software company, Cyient has also decided to give a softer outlook in Q3 ahead of seasonal weakness amid furloughs and festive holidays during the end of the calendar year where the company witnessed 3-4 per cent de-growth in capacity. The company had posted 9.4 per cent and 31.5 per cent QoQ growth in September 2016 quarter.

At present, the stock of Cyient is trading higher by 3 per cent at Rs 507 levels ahead of the results. The stock strives to give a consolidation breakout on intraday basis by hitting a high at 544 levels in first half an hour itself; but is on day’s high now.

The company is likely to post 2.4 per cent and 2.8 per cent growth in top line and bottom line respectively thereby it may see revenues and net profit hitting to Rs 935.5 crore and Rs 100 crore respectively. Company's dollar revenue would increase to 138.7 million USD i.e. 1.6 per cent up from the previous quarter. Moreover, company’s operating profits may see a 2.2 per cent growth taking it to Rs 130 crore on QoQ whereas margins may remain flat.