New Delhi: IT firm Cyient on Thursday posted a 54.7 per cent rise in net profit to Rs 188.1 crore for the March 2019 quarter, helped by exceptional items like ‘one-off employee cost’.
Meanwhile, the share price of Cyient rose 8 per cent to Rs 603 per share in early trades on Friday after the company reported robust numbers for the quarter ended March 2019. However, at the time of writing, the shares fell sharply reaching Rs 592.50 a piece.
The Hyderabad-based company had posted a net profit of Rs 121.5 crore in the corresponding quarter a year ago, Cyient said in a statement.
The net profit without the impact of ‘one-off employee cost’ and ‘Insights LLC dissolution’ (a subsidiary) was Rs 176.8 crore, which Cyient referred to as PAT. This was higher by 49.4 per cent.
Its revenue increased 9.5 per cent to Rs 1,162.9 crore in the said quarter against Rs 1,061.8 crore in the year-ago period, it added.
On a sequential basis, the net profit more than doubled from Rs 92.1 crore, while revenue declined 2.1 per cent in the reported quarter from Rs 1,187.6 crore in the October-December 2018 quarter.
“Our performance (during the quarter) was lower than the initial expectations both on revenue and margin… For the year we delivered a strong performance…Our outlook for FY20 remains strong backed by a strong pipeline and order backlog,” Cyient Managing Director and Chief Executive Officer Krishna Bodanapu said.
For 2018-19, the net profit (normalised) grew 14 per cent to Rs 489.8 crore, while revenue was higher by 17.9 per cent to Rs 4,617.5 crore from the previous fiscal.
The ‘reported PAT’ during 2018-19 rose 18 per cent to Rs 478.5 crore. This takes into account the impact of exceptional items like divestment in Infotech Aerospace Services Inc (IASI) and restricted stock units’ fair valuation in 2017-18, and one-off employee cost, and Insights LLC dissolution in 2018-19.
The company said it has seen its highest-ever group annual revenue at USD 660 million, an increase of 8.7 per cent in dollar terms and a 10.1 per cent in constant currency terms.
The board has recommended a final dividend of Rs 9 per share share, aggregating to Rs 119.3 crore including dividend distribution tax for 2018-19. Its cash and cash equivalents stood at Rs 998.3 crore at the end of March 2019.
Cyient, whose board of directors in February had approved buyback of shares worth about Rs 200 crore, said about 2.6 million shares had been bought back till March 31, 2019, for Rs 167 crore.
At the end of the March 2019 quarter, Cyient had 15,084 employees with voluntary attrition rate at 19.9 per cent and involuntary attrition at 4.6 per cent.
