January 19, 2017 / 15:15 IST
ICICI Direct's research report on Cyient Cyient’s EBITDA margins declined 60 bps QoQ to 13.4% and were below our 14.2% estimate. Margins were impacted mainly due to muted revenue growth and higher material & manufacturing cost that dented gross margins of Rangsons business by 60 bps. Q4FY17E margins may witness some uptick in Q3FY17 led by higher revenue growth owing to strong order intake and higher revenue growth from Rangsons business. The management expects margins to remain flat or increase marginally in FY17E.
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Cyient’s EBITDA margins declined 60 bps QoQ to 13.4% and were below our 14.2% estimate. Margins were impacted mainly due to muted revenue growth and higher material & manufacturing cost that dented gross margins of Rangsons business by 60 bps. Q4FY17E margins may witness some uptick in Q3FY17 led by higher revenue growth owing to strong order intake and higher revenue growth from Rangsons business. The management expects margins to remain flat or increase marginally in FY17E.
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