India's Cyient misses third-quarter profit estimates on higher costs

L&T Technology Services

23/01/2025 13:12

Jan 23 (Reuters) - Indian engineering and technology
firm Cyient  CYIE.NS  reported a third-quarter profit below
analysts' expectations on Thursday, hurt by slower growth in its
biggest segment and higher costs.
    Its profit declined to 1.22 billion rupees ($14.12 million)
for the three months ended Dec. 31, from 1.47 billion rupees a
year ago. Analysts had expected 1.71 billion rupees, according
to data compiled by LSEG.
    Growth in Cyient's transportation division — which
contributes 30% to the company's biggest unit, digital,
engineering and technology — has eased over the past few
quarters due to delays in project starts in the aerospace
segment and slowdown in the rail segment.
    The downbeat results also echo those of peer engineering,
research and design companies (ER&D) Tata Elxsi  TTEX.NS  and
L&T Technology Services  LTEH.NS .
    ER&D services, which include providing technology support to
industries such as aerospace, telecom and automotive, contribute
a sixth of the revenue to India's $254-billion technology
sector.
    Cyient's total expenses rose 9% during the quarter, led by a
26% jump in its cost of materials consumed and a 6% rise in
employee expenses.
    Revenue from the company's digital, engineering and
technology segment, which contributes more than 76% to its total
revenue — fell 1%.
    Its smaller design-led manufacturing business, Cyient DLM
 CYIT.NS , posted a 38% rise in revenue.
    Cyient's total revenue rose 5.7% to 19.26 billion rupees,
beating analysts' estimates.

($1 = 86.4040 Indian rupees)

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 (Reporting by Aleef Jahan)
 ((aleefjahan.cs@thomsonreuters.com))