India's Cyient misses Q3 profit view, narrows guidance for largest unit

Cyient

25/01/2024 11:38

Jan 25 (Reuters) - Indian engineering and tech services
provider Cyient  CYIE.NS  reported a lower-than-expected
quarterly profit on Thursday due to higher employee costs and
narrowed the revenue growth outlook for its largest business
unit.
    The Hyderabad-headquartered company's consolidated net
profit dropped 2% to 1.53 billion rupees ($18.42 million) for
the quarter ended Dec. 31. Analysts, on average, had expected a
profit of 1.85 billion rupees, as per LSEG data.
    The company's employee costs jumped 9% year-on-year to 8.97
billion during the quarter.
    Cyient also narrowed full-year outlook for revenue growth in
its digital, engineering and technology (DET) unit to 13%-13.5%
from 15%-20%. The company did not mention the reasons behind the
narrowed forecast.  
    Earlier this month, larger peers Infosys Ltd  INFY.NS , HCL
Technologies  HCLT.NS  and Wipro  WIPR.NS  also tightened
forecast and flagged that macro conditions had hardly changed
from the previous quarter.
    However, their numbers and commentary turned out to
better-than-feared, fuelling a rally in IT stocks and pushing
the country's benchmark indexes to fresh all-time highs this
month.
    Consolidated revenue from operations for Cyient rose 12.5%
to 18.21 billion rupees for the quarter on the back of growth in
the sustainability and transportation verticals. This is
slightly ahead of analysts' average estimate of 17.11 billion
rupees, according to LSEG data.
    Cyient shares closed 1.2% lower at 2,019.65 rupees on
Thursday ahead of the results. 
    
($1 = 83.0830 Indian rupees)

 (Reporting by Sai Ishwarbharath B; Editing by Janane
Venkatraman)
 ((saiishwarbharath.b@thomsonreuters.com;))