Cyient Q3 net profit falls 12% to Rs 95 crore
Cyient won a number of large deals which sets us up for a stronger performance in the coming quarters, Bodanapu added.
January 21, 2021 / 10:01 PM IST
IT firm Cyient on Thursday reported a 11.9 percent decline in net profit at Rs 95.4 crore for the December 2020 quarter.
The Hyderabad-based company had posted a net profit of Rs 108.3 crore in the year-ago period, Cyient said in a regulatory filing. Its revenue decreased 5.6 percent to Rs 1,044.3 crore for the period under review as against Rs 1,106 crore in the third quarter of 2019-20, it added.
On sequential basis, net profit was higher by 13.8 percent from Rs 83.9 crore, while revenue was higher by 4.1 percent from Rs 1,003.3 crore in September 2020 quarter. "PAT increased by 13.8 percent quarter-on-quarter primarily from higher other income (Rs 126 million) partially offset by higher tax from higher profits and increase in finance charges," it said.
In dollar terms, Cyient's revenue was at USD 141.4 million, up 4.7 percent q-o-q and a de-growth of 8.9 percent year-on-year, it said. "Q3 FY21 results are in line with our expectations, we recorded a revenue of USD 141.4 million which was higher by 4.1 percent q-o-q and lower by 10.4 percent y-o-y in constant currency…We continue to focus on improving operational efficiency and executing actions to bring growth back in the business," Cyient Managing Director and CEO Krishna Bodanapu said.
Cyient won a number of large deals which sets us up for a stronger performance in the coming quarters, he added. "Our order intake for the quarter has increased by 7 percent y-o-y backed by strong growth in key clients and digital opportunities. The new organisation structure implemented in the last quarter is settling in well and we see increased growth traction with opportunities in key industries," he said.
Bodanapu added that the company expects the recovery in the business through the fourth quarter of FY21 with services business growing sequentially, driven by growth across all segments except Aerospace and Defence which is expected to remain flat. "Our outlook for FY21 remains unchanged wherein we expect a double-digit de-growth in revenue," he said.