Cyient Sees Strong 20% Q4 Growth Driven By Key Aerospace Deals
The firm's fourth-quarter revenue also rose by 2.1 per cent sequentially, reaching Rs 1,860 crore and exhibited a 6.2 per cent increase
Hyderabad-based engineering service provider Cyient has reported a robust performance for the fourth quarter of fiscal year 2024, with net profits climbing 22 per cent sequentially to Rs 196 crore.
This marks a 20 per cent increase year-over-year (YoY). The firm's fourth-quarter revenue also rose by 2.1 per cent sequentially, reaching Rs 1,860 crore and exhibited a 6.2 per cent increase compared to the same period last year.
The revenue boost in Q4 can largely be attributed to significant deal wins with major aerospace companies, including Airbus and Deutsche Aircraft. These deals have notably enhanced the company's engineering and research and development (ER&D) efforts.
Despite the overall positive financial performance, Cyient's Digital, Engineering, and Technology (DET) segment saw a slight contraction, degrowing by 0.1 per cent sequentially to Rs 1,489 crore. However, this segment still accounts for 80 per cent of the company’s overall revenue and maintained its operating margin at 16 per cent, consistent with the previous quarter.
The DET segment also experienced a decrease in attrition, which dropped from 18.4 per cent in Q3 to 17.1 per cent in Q4, although there was a slight reduction in headcount by 217, ending the fiscal year with 15,461 employees.
Krishna Bodanapu, executive vice chairman and MD, Cyient, said, “This year has been a very exciting and a momentous one for the Cyient Group in terms of delivering a balanced performance around growth and profitability, executing key initiatives such as DLM divestiture and margin expansion, and building a balanced portfolio of offerings to drive sustainable future growth.”
Karthikeyan Natarajan, the executive director and CEO, expressed optimism for the future, crediting the growth to aerospace, sustainability, and automotive sectors. He anticipates that communications and semiconductor businesses will rebound in the coming fiscal year. Furthermore, Natarajan elaborated on the ongoing projects with Airbus and Deutsche Aircraft, which include developing Airbus’ Intelligent Core Management Platform and designing the rear fuselage for Deutsche Aircraft's D328eco aircraft.
