Aiming for USD 10-12 mn topline in FY16-17: Cyient CFO

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26 Aug, 2025 12:21

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Cyient will get an entry into the maintenance, repair and overhaul (MRO) related engineering services with its acquisition of Global Services Engineering Asia, Chief Financial Officer Ajay Aggarwal told CNBC-TV18.The acquisition fits into its long term growth strategy in aerospace and defence sectors, Aggarwal said adding that it will add to the company’s capacity.Cyient will inherit Global Services’ customers as per the agreement, Aggarwal said. In the short term, the company is expecting a 12-14 percent margin and a 15-20 percent margin in the  long term. In FY2016-17, Cyient is expecting consolidated revenues of USD 10-12 million.Below is the transcript of Ajay Aggarwal’s interview with Reema Tendulkar and Mangalam Maloo on CNBC-TV18.Mangalam: First up, where does this take you in terms of your long-term vision towards getting more revenue from services and design companies? I mean what is the incremental benefit from this company?A: If you see our long-term strategy and vision, one of the clear articulation is in terms of growth in aerospace and defence, which is one of our major industries and more than one third of our revenue comes from aerospace. There we have been giving some repair, engineering related services, but this gives us an entry into maintenance, repair and overhaul (MRO) related repair engineering services. And this will really provide us another capacity and capability to serve our customers.Reema: With this acquisition, you do extend your capabilities in the after-market and in the MRO space which is maintenance, repair and overhaul. What is the addressable market size? Could you quantify that for us?A: As such, if you look at the MRO market is a very huge. Today, it is about USD 67 billion and it goes to about USD 100 billion by 2025. Maybe at least 10 percent of that could be the addressable market in terms of the repair related engineering. So, the market size is really huge. It is a small beginning for us in this. That is what I would say.Mangalam: Is there any order book, pre the acquisition that the company comes with, which will be added on to Cyient as well?A: As of now, this company dedicatedly works for one of our customers, Pratt & Whitney, America and this has been operating exclusively as their in house operation. So, what we inherit will be the contract with the customer and that guaranteed renews our part of the terms and conditions.Reema: Considering you will be able to leverage all these skilled employees, 90-100 skilled employees that you get from this particular acquisition, can you increase your margins say by FY17 from the current 12-14 percent that this company enjoys? A: I would say in financial year FY16 and FY17, I would go by the view of 12-14 percent margins. when we look at long-term horizon of 3-5 years, there are definitely huge opportunities both in terms of revenue scale-up as well as improving the operating margins. Reema: Any numbers?A: Maybe it can go from 15-20 percent.Reema: And on the top-line what could be the growth?A: I would say that as of now, financial year FY16-FY17, we are saying the revenue top-line could be about USD 10-12 million annually, for financial year FY16, we will get the benefit of 6-7 months depending on when we close this transition, definitely in quarter two. Long-term, I would not like to put a number as of now.Mangalam: Your FY15 revenue was close to about USD 415 million while your target is about USD two billion by 2020. So, we are understanding that there will be some more inorganic acquisitions as well?A: That is right. If you see, this is the fourth acquisition in the last 15 months. And definitely, we should see number of more acquisitions coming in, in line with the strategy.