CYIENT IN Q4FY25 AT GROUP LEVEL REPORTED REVENUE OF US$220.4 MN

News: Cyient in Q4FY25 at group level reported revenue of US$220.4 mn, down 3.3% QoQ/ down 1.6% YoY (up 0.1% YoY in CC terms). DET business reported revenue of US$ 170 mn, down 1.9% QoQ/3.4% YoY in CC terms. Geography wise, on a QoQ basis, the growth was led by EMEA (31.1% of the mix) which grew by 4.8%. Whereas, APAC (18.3% of the mix) and North America (50.6% of the mix) declined by 18.2% and 0.8% respectively. Segment wise on a QoQ basis in CC terms, new growth areas (16.2% of the mix), Connectivity (23% of the mix), Transportation (30.5% of the mix) declined 6%, 4%, 1.1%. respectively. Whereas, Sustainability (30.4% of the mix) grew by 1.1%. The company in DET business reported EBIT margins of 13%, down ~50 bps QoQ partially due to subdued revenue growth which is partially offset by cost optimisation and efficiency measures. While at the group level, the margins came at 12.3%, down ~90 bps QoQ. The PAT for the DET business stood at ₹163 crore, up 31% QoQ/ down 6% YoY. TCV for the quarter stood at US$184.2 mn, down 19% YoY. For FY25, the revenue for the group stood at US$ 870 mn, down 0.8% YoY. Whereas, EBIT Margins for the group came at 12%, down 250 bps YoY. DET business reported revenue of US$688 mn, down 3.7% YoY in CC terms. While margins came at 13.5%, down ~300 bps YoY. PAT for the DET business stood at ₹605 crore, down 5% YoY.

View: Cyient's Q4FY25 performance reflected a subdued quarter, with both revenue and margins under pressure due to challenging macroeconomic conditions, leading to deal delays and cancellations. The management anticipates this softness to persist into Q1FY26 and has revised its FY26 margin guidance downward to 15% from 16%, citing planned wage hikes and strategic investments (such as developing a GCC focused vertical to tap into opportunities) aimed at accelerating future revenue growth. We maintain a cautious outlook on the company, until any material improvement is reflected in their revenue performance which will be a function of deal wins and ramp up. 

Impact: Negative