Cyient has been in focus of late. The company reported a strong set of numbers in the second quarter, surprising both on revenue as well as margin front. The stock has been trading higher by almost 9 percent this week.
Staying positive on the company’s performance going forward, Krishna Bodanapu, MD & CEO of Cyient, said the visibility for FY16 looks strong and the business momentum in the current year is better than last year.
Below is the transcript of Krishna Bodanapu’s interview to CNBC-TV18’s Sumaira Abidi and Latha Venkatesh
Sumaira: After two years of posting weak dollar revenue growth this time around in Q2 you delivered a solid performance so that has led a lot of brokerages actually to up their FY15 estimates to about 24 percent odd growth. Do you think you will now manage it or will you exceed it?A: We have had a robust streak of quarters now, we have had four solid quarters of growth. The best quarter we have had was 7 percent constant currency growth in the last four quarter. In terms of the absolute numbers I think it is really a mathematical exercise at this point. All I can say is the momentum is quite strong and we continue to see the momentum for the rest of the year. Q3 is seasonally a weak quarter for us just because of the number of working days and a few associated things. So Q3 will still deliver growth but may be not to the extent that what we have done in the last four quarters. But from Q4 onwards and more importantly getting into FY16, we believe we have some really solid momentum behind us. So beyond that it is really a mathematical exercise and anybody can do that.
Latha: Your FY14 was not a bad quarter itself. Your revenues grew by over 20 percent and your earnings have grown 40 percent. So is FY15 going to be at a slightly faster pace?A: Just one correction, FY14 the revenue growth was 20 percent in rupee terms. In dollar terms it was 6.5-6.6 percent. So we obviously significantly benefitted from the rupee depreciation in FY14. So the underlying dollar growth was a little lower than that obviously. Now in FY15 I think we also have one advantage that is the acquisition of Softential adds roughly 5 percent to whatever the end number in dollar terms. But taking Softential into account, the 24 percent is possible or is roughly where we will be. The exact numbers are hard to say right now but that is the range that we are looking at at this point.
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