Cyient logs 5.6% rise in FY17 net

Hyderabad: City-based IT player

Cyient

Limited has reported a 5.6% rise in the net profit for the 2016-17 fiscal at Rs 343.8 crore as compared to Rs 325.5 crore last fiscal. This was on a 16.3% increase in revenues at Rs 3,606.5 crore in FY17 as against Rs 3,102 crore in FY16. Cyient MD and CEO Krishna Bodanapu said, “For the year, we delivered a strong performance and witnessed a growth of 13.7%, driven by communications, aerospace & defence and design led manufacturing (DLM) business units, while the utilities and geospatial and transportation business unit growth was impacted by cross currency fluctuation.”

The company said that during FY 17 it had the highest ever cash balance of Rs 970.6 crore in spite of three acquisitions and increased dividend payout.

The company said its net profit dipped 16.7% to Rs 78.4 crore as compared to Rs 94.2 crore during the third quarter of FY17. This was on a marginal increase of 2.6% in the total income at Rs 941 crore in the fourth quarter as compared to Rs 917 crore in the third quarter of FY17. Talking about the fourth quarter results, Bodanapu said, “Q4 FY17 was in line with our expectations, both in revenue and margin. We recorded our highest ever revenue and free cash flow in this quarter. The growth in our services business was driven by utilities and geospatial, aerospace & defence and transportation business units. The DLM business continues to improve performance and delivered a double digit growth YoY.” On the outlook for FY18, he said the company expects a similar growth in the services business while the DLM business is expected to grow in the range of 20%. “Our margins are expected to improve by 50bps, driven by improvements in operational efficiency through the year. We expect to deliver a double digit earnings growth in FY18,” he added. The company said its board has appointed Vinai Thummalapally as additional director and also recommended a final dividend of 100% for 2016-17, which works out to a dividend of Rs 5 per equity share of face value of Rs 5 each.


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