India's Cyient beats Q2 revenue estimates on sustainability, transport demand

Cyient

19/10/2023 12:56

BENGALURU, Oct 19 (Reuters) - India's Cyient  CYIE.NS 
on Thursday reported a bigger-than-expected rise in its
second-quarter revenue on strong growth in sustainability and
transportation segments.   
    The engineering and technology solutions company's
consolidated revenue from operations jumped 27.4% to 17.79
billion rupees ($213.8 million) for the September quarter,
beating analysts' average estimate of 16.67 billion rupees, as
per LSEG data. 
    The company's consolidated net profit saw an over two-fold
rise to 1.78 billion rupees in the September quarter from a year
earlier.
    Revenue from its biggest digital, engineering and technology
segment rose 22% to 14.76 billion rupees during the quarter.
    The company's order intake for digital, engineering and
technology business saw a 40% year-on-year rise. 
    Revenue from the sustainability business rose nearly 72%,
while the transportation segment saw a growth of 22%.
    Cyient's revenue growth was stronger compared with its
larger peers.
    Market leader Tata Consultancy Services  TCS.NS  posted
weaker-than-expected second-quarter revenue last week, while
Wipro  WIPR.NS  reported an unexpected drop in revenue on
Wednesday.
    Wipro has warned it expects the decline in its IT services
revenue to accelerate this quarter, while Infosys  INFY.NS  has
cut its full-year revenue forecast as clients are delaying
decision making and cutting discretionary spends.
    Shares of Cyient closed nearly 5% up at 1,763.20 rupees
ahead of results on Thursday.
    The company's design-manufacturing business Cyient DLM
 CYIT.NS , which was listed in July, reported an over two-fold
rise in September quarter net profit. 
   


($1 = 83.2150 Indian rupees)

 (Reporting by Kashish Tandon in Bengaluru; Editing by Mrigank
Dhaniwala)
 ((Kashish.Tandon@thomsonreuters.com;))