Cyient posts muted Q3 numbers

Cyient Ltd. declared its Q3 results on Thursday.

Cyient’s revenue increased by 17 per cent on a YoY basis to Rs 917 crore. This was the highest ever recorded sales figure in the company’s history. However, on a QoQ basis, the revenue growth remained negligible (0.4 per cent). 

The company's EBIT on a YoY basis surged 15.8 per cent, while on QoQ basis, it decreased 7.2 per cent to Rs.97 crore.

On the margin side, EBIT and PAT margin were 10.5 per cent and 10.3 per cent, respectively, for the quarter. The PAT margin contracted by 29.79 bps on a YoY basis.

This primary reason behind the muted number was seasonally weak quarter.

The company's free cash flow (FCF) for the quarter stands at Rs 127.3 crore, which is highest ever. Further, the company's day sales outstanding (DSO) stands at 76 days, the lowest ever.

Cyient Ltd provides engineering solutions, including product development and life-cycle support, process, network and content engineering. It operates in two segments. Its Network & Content Engineering (N&CE) segment (known as Utilities, Telecom and Content) vertically services customers in industries, such as power, gas, telecom, transportation and local government.

 The company’s service offerings to the N&CE vertical include data conversion, data maintenance, photogrammetry and information technology (IT) services.

The scrip opened at Rs 493 and jumped 10 per cent to touch the day's high of Rs.544. However after the quarterly results were declared, the stock corrected and closed at Rs 498.85.