Shares of Cyient DLM rallied as much as 4.2 percent to Rs 440 in morning trade on February 12, snapping its massive seven-day losing streak, after the company announced it has secured a production contract from Boeing Global Services (BGS) for precision-machined parts and assemblies, marking a key milestone in their partnership.
"This contract with Boeing is a significant achievement for Cyient DLM, showcasing our advanced manufacturing capabilities and unwavering commitment to excellence," the company said in a regulatory filing. "We look forward to strengthening this relationship by consistently delivering products that meet the highest industry standards," it added.
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The company is among the first AS9100C aerospace-certified electronic manufacturing facilities and the first in India to obtain the National Aerospace and Defense Contractors Accreditation Program (NADCAP) certification for Circuit Card Assembly (CCA).
The company reported a sequential decline in its consolidated net profit and margin for the December quarter.
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Cyient DLM reported a sharp decline in its consolidated net profit for the December 2024 quarter, with earnings falling nearly 30 percent sequentially and 40 percent year-on-year to Rs 11 crore. The company’s EBITDA margin contracted to 8.1 percent, down from 9.2 percent in the same period last year, as higher employee and operational costs weighed on profitability.
The increase in costs was primarily driven by the consolidation of Altek Electronics, Inc., a U.S.-based EMS firm specializing in PCB assemblies, box builds, and cable harnesses, with ITAR certification.
Despite the profit decline, Cyient DLM posted strong revenue growth, with operations generating Rs 444.2 crore in Q3 FY25, marking a 38 percent year-on-year rise from Rs 321 crore and a 14 percent sequential increase from Rs 389.4 crore in the previous quarter. EBITDA also improved to Rs 35.9 crore from Rs 29.4 crore a year earlier and Rs 31.6 crore in Q2 FY25.
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As an electronics system design and manufacturing firm, Cyient DLM provides design, integration, testing, and production of electronic components for OEMs. It serves sectors such as aerospace, defence, and high-tech engineering, with a global presence across India, Europe, North America, China, and Japan.
At about 10:50 am, shares of the company were trading at Rs 438, higher by 3.9 percent from the last close on the NSE. Cyient DLM shares have tanked a staggering 30 percent in the last month.
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