India's Cyient posts quarterly profit fall on sustainability division weakness

Cyient

24/04/2025 13:22

April 24 (Reuters) - Indian engineering and technology firm Cyient CYIE.NS posted a 9.9% fall in fourth-quarter profit on Thursday, hurt by weak demand in its sustainability segment and increased expenses.

The company said its consolidated net profit fell to 1.70 billion rupees ($19.93 million) for the three months ended March 31 from 1.89 billion rupees a year ago.

The engineering, research & design (ER&D) firm's revenue rose 2.6% to 19.09 billion rupees, while a rise in employee benefits costs pushed up its total expenses by 4.2%.

Cyient's sustainability segment, which provides services including plant engineering and decarbonisation, revenue fell 8.9% year-on-year.

KEY CONTEXT

The sustainability segment remained sluggish, with order intake in Cyient's digital, engineering & technology wing — which houses the segment — falling about 7% year-on-year.

Indian ER&D firms offer solutions in areas like energy efficiency, emissions monitoring, equipment design to global enterprises looking to prioritise sustainability and fast-track carbon-neutral and net-zero goals.

Peer Tata Elxsi TTEX.NS missed its quarterly earnings expectations last week.

ER&D services, which also include technology support to areas such as aerospace and automotive, contribute nearly a fifth of the revenue to India's $283 billion technology sector.

  PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth(%)
Profit growth(%)
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
Cyient Ltd
CYIE.NS
17.46
9.12
12.61
22.80
HOLD
18
0.80
2.41
L&T Technology Services Ltd
LTEH.NS
30.73
18.54
18.36
16.84
HOLD
27
0.90
1.12
Tata Elxsi Ltd
TTEX.NS
42.92
31.59
6.18
2.06
SELL
12
1.20
1.24
Tata Technologies Ltd
TATE.NS
37.86
27.07
7.37
15.98
SELL
10
1.04
1.17

 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JAN-MARCH STOCK PERFORMANCE

-- All data from LSEG

-- ($1 = 85.3090 Indian rupees)

TTEX https://tmsnrt.rs/42XAvGd

 (Reporting by Aleef Jahan)

 ((aleefjahan.cs@thomsonreuters.com))