Cyient (earlier known as Infotech Enterprises), which will declare its second quarter (July-September) earnings on Wednesday, is likely to report 36.5 percent growth in profit at Rs 93.5 crore compared to Rs 68.5 crore in previous quarter.
Analysts expect dollar revenue growth to appear lower than the 7.8 percent growth reported in Q1 as Q1 had a USD 3.56 million revenue contribution from its acquisition Softential.
A CNBC-TV18 poll sees dollar revenue rising 3.65 percent to USD 107.8 million from USD 104 million while rupee revenue may increase 5.3 percent to Rs 655 crore from Rs 621.7 crore on sequential basis.
Analysts feel lower subcontracting expenses, improving utilisation and rupee depreciation may boost operating profit margin of the company.
Operating profit or EBITDA is seen rising 20 percent quarter-on-quarter to Rs 105 crore and margin may expand 190 basis points to 16 percent in the quarter ended September 2014.
Analysts said Cyient has a hedge position of USD 130 million (as of June 2014) at an average rate of 66 per dollar. Assuming the rupee rate remains at 61-62 a dollar over the coming quarters, these hedges are likely to yield Rs 50-65 crore of gains over the next 12 months.
Key things to watch out for are outlook for growth in aerospace segment, revenue growth from top clients, fresher hiring, and margin outlook and capex plan.
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