India's Cyient beats Q4 revenue estimates on resilient client demand

Cyient

25/04/2024 12:47

BENGALURU, April 25 (Reuters) - India's Cyient  CYIE.NS 
reported bigger-than-expected fourth-quarter revenue on
Thursday, as engineering and technology, its largest segment,
benefited from continued client spending. 
        
    WHY IT'S IMPORTANT
  
    India's $254 billion IT sector has been struggling in recent
quarters as clients cut spending on non-essential projects.
    However, engineering and tech services companies such as
Cyient have been able to tide over as they focus on providing
services to the transportation, mining and energy sectors,
whereas larger IT services firms, including Tata Consultancy
Services  TCS.NS  and Infosys  INFY.NS , mainly cater to sectors
such as banking, financial services, and insurance (BFSI).
        Analysts expect Cyient's deal wins in the fourth quarter
from 
    Airbus
     and 
    Deutsche Aircraft
     to help its maintain engineering and technology growth in
the aerospace segment in fiscal 2025.  
  
            
  
       
    BY THE NUMBERS
  
    Consolidated revenue rose 6.3% to 18.61 billion rupees
($223.4 million) in the January-March period, beating analysts'
estimate of 17.27 billion rupees, as per LSEG data.
    The company's digital, engineering and technology segment
accounted for 80% of its overall revenue.
    Net profit climbed 15.9% to 1.89 billion rupees for the
period. 
        
  
             
    GRAPHIC
  
   
 
  
       

    KEY QUOTES
  
 "For FY25, our order book looks strong and we will continue to
focus and invest on strengthening our intelligent engineering
and technology solutions across key industries and megatrends," 
Managing Director Krishna Bodanapu said. 
    "We are also confident that our presence in key industry
verticals through our balanced portfolio will help us deliver
balanced outcomes in the evolving market and geo-political
uncertainties."
    
($1 = 83.3049 rupees)

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Cyient vs peers    https://tmsnrt.rs/44lhQ6n
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 (Reporting by Rama Venkat in Bengaluru; Editing by Sonia
Cheema)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;
 +91 8095218099;))