IT firm Cyient, formerly known as Infotech Enterprises, today reported a 29.7 per cent drop in net profit at Rs 65.9 crore for the March quarter, weighed down by a one-time payment of Rs 84.3 crore.
The Hyderabad-based company had posted a net profit of Rs 93.8 crore in the corresponding quarter a year ago.
Excluding the one-off item, net profit was 10.1 per cent lower at Rs 84.3 crore in the reported quarter.
Cyient's revenue stood at Rs 815.8 crore in the said quarter as against Rs 730 crore in the year-ago period, up 11.8 per cent.
In dollar terms, net profit dropped 35.2 per cent to USD 10 million, while revenue grew 3 per cent to USD 121 million in the quarter under review from the year-ago period.
For the fiscal 2015-16, net profit was down 7.6 per cent to Rs 326.2 crore, while revenue grew 13.1 per cent to Rs 3,095.6 crore compared with the previous fiscal.
Krishna Bodanapu, MD and CEO, said Financial year 2015-16 was a challenging year for Cyient.
"The core business of the company consisting of the Engineering and DNO operations was flat. Margin in these businesses increased during the course of the year by 100 bps.
In addition to revenue growth in the core business, we faced significant headwinds in some of the investments we made," he added.
He further said while the company had consistent quarter- on-quarter growth, but the revenue for the year was lower than what "we originally committed and as a result of these challenges, FY16 was a disappointing year".
However, Bodanapu expressed confidence about the new fiscal.
"Our pipeline and backlog are higher than they have ever been... Core business will grow in double digits while DLM will grow at least 50 per cent.
"Overall, margins will also improve by 150 bps. While I am cognizant of the disappointing performance in FY16, I am confident more than ever that we will deliver better than our historical earnings growth in the coming year," he said.
The company added 22 customers during the quarter - 11 in Data Network and Operation (DNO), 9 in Engineering and 2 in Product Realization (PR).
Revenue from the US was down 4.6 per cent quarter-on-quarter (q-o-q), whereas it saw 11.4 per cent q-o-q rise in revenue from Europe, the Middle East, Africa and India, and Asia Pacific grew 8.7 per cent q-o-q.
Engineering revenue increased by 2.9 per cent q-o-q, while DNO revenue grew by 1.1 per cent q-o-q.
Cyient has appointed John Wiedemer as alternate director to Thomas Prete. Jayant Sabnis was the alternate director earlier.
The board has also decided not to declare any final dividend for the year 2015-16.
Cyient's shares closed 3.94 per cent down at Rs 482.15 apiece on BSE.
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