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- 21 Apr 2023
- ICICIdirect Research
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CYIENT GUIDING FOR 15-20% REVENUE GROWTH IN FY24
CYIENT - 1309 Change: 2.70 (0.21 %)News: Cyient reported revenue of US$ 213 mn at group level, up 8.1% QoQ while in CC terms it grew by 6.6%. Consolidated Services revenue (Acquisitions & Core Services) reported revenue of US$ 176.2 mn, up 4.9% QoQ and in CC terms it grew by 3.2%. Core Services (organic business) grew 2.6% QoQ & 12% YoY in CC terms. In rupee term the group revenue grew by 8.2% QoQ to Rs 1,751.4 crore with DLM contributing 302.5 crore (up 26.8% QoQ). Geography wise the growth was led by EMEA region (34.4% of revenue mix) which grew by 10.1% QoQ while North America (46% of mix) reported muted growth of 0.4% QoQ. Vertical wise in CC terms Transportation & Sustainability grew by 12.9% & 3.1% QoQ while Connectivity declined by 3.3% QoQ. Normalised Core services EBIT margin excl. exceptional items & acquisition impact improved by ~100 bps QoQ to 16.1% due to the tailwinds of: i) improved realizations +130 bps, ii) cost efficiency due to increase in volume +90 bps, iii) favourable revenue mix +40 bps & iv) currency benefits +30 bps mitigated by the tailwinds of i) increase in SG&A expenses -100 bps & ii) decline in utilisation -90 bps. The company added 479 net new employees taking the total headcount to 479
Views: The company is guiding for 15-20% revenue growth in FY24 led by increased traction in aerospace vertical wherein it expects double digit growth due to increase in air travel & opening up of China economy. The company indicated that it has given wide revenue guidance due to the uncertain macro environment but we expect the company to narrow the gap as the year progresses. The company has also received approval from SEBI for IPO of the DLM business which will further be accretive for the margins at the group level
Impact: Positive