Cyient up 2%, buys Pratt & Whitney's engg biz in Singapore

"We are committed to grow aerospace aftermarket services in the region and expand reach into other industries within Singapore," said Krishna Bodanapu, MD and CEO, Cyient.

Aerospace contract typically has 3 parts - design, build and maintain. Cyient is right now mostly present in design of aero space which is only 15 percent of contract. However, maintenance repair and overhaul (MRO) is 35 percent of contract, and the market is expected to grow from USD 67-100 billion in 10 years, believe experts.

It was the fourth acquisition by company in past 15 months. It acquired Softential Inc in March 2014, Invati Insights in August 2014 (51 percent stake) and Rangsons in January 2015. Of which Softential and Rangsons were relatively big acquisitions.

Cyient has has a 5-year vision plan where it aspires to reach USD 2 billion in revenue by 2020 & return on equity of 20 percent, which calls it as S3 = services systems and solutions.

In the quarter ended June, the IT company's profit after tax fell 20.3 percent sequentially to Rs 74.81 crore and revenue slipped 0.5 percent to Rs 726.3 crore.

At 10:25 hours IST, the scrip of Cyient was quoting at Rs 541.00, up Rs 2.15, or 0.40 percent on the BSE.Posted by Sunil Shankar Matkar