IT firm Cyient on Thursday reported a 74.4 percent decline in consolidated net profit at Rs 45.2 crore for March 2020 quarter. The Hyderabad-based company had posted a net profit of Rs 176.8 crore in the year-ago period, it said in a regulatory filing.
Its revenue from operations also decreased 7.7 percent to Rs 1,073.6 crore for the period under review as against Rs 1,162.9 crore in the fourth quarter of 2018-19.
In dollar terms, net profit fell almost 76 percent to USD 6.1 million, while revenue was lower by 9.7 percent at USD 149.2 million in the said quarter over previous fiscal.
For FY'20, net profit slipped 28.4 percent to Rs 342.5 crore, while revenue was lower by 4.1 percent at Rs 4,427.4 crore.
"Our performance was below expectations both on revenue and margin terms, largely due to the impact of COVID which was significant on many parts of our business. Our revenue for the quarter stood at USD 149.2 mn, 3.8 percent lower quarter-on-quarter in constant currency," Cyient Managing Director and CEO Krishna Bodanapu said.
The gross margin at 33.5 percent was lower by 248 bps sequentially with significant impact due to the shortfall in revenue, he said, adding that the company is focused on accelerating business growth.
Cyient President and CFO Ajay Aggarwal said, "We are preparing to secure future in these challenging times with an aggressive cost control and optimisation plan with primary focus on liquidity and cash."
"This includes rigorous initiatives on collections, working capital cycles, receivables, payables, and discretionary cost control," he said.
Aggarwal added that the company continues to tap opportunities for automation, pyramid rationalisation, subcontracting cost optimisation and other cost levers.
"We expect our margins to strengthen in FY21 where the full benefits of improved operational efficiency will be visible. The COVID-19 pandemic has slowed down the positive momentum that we had seen building in the overall performance.
"However, we stay confident in our ability to embrace and adapt to the new normal and to get back to an industry-leading growth and profitability position over the long term," he said.
The total dividend for the year stood at Rs 15 per share.
The company's headcount at the end of March quarter was at 13,859 people as compared with 14,472 people at the end of December 2019 quarter.
Its voluntary attrition was at 18.9 percent in the fourth quarter of FY'20.