- 26 Jul 2023
- ICICI Securities
HEALTHY MARGINS PERFORMANCE; MAINTAINS 15-20% REVENUE GROWTH GUIDANCE FOR FY24
CYIENT - 1290 Change: -8.00 (-0.62 %)News: Cyient reported revenue of US$ 205 mn at group level, down 3% QoQ. Consolidated Services revenue (Acquisitions & Core Services) reported revenue of US$ 177.1 mn, up 0.3% QoQ and in CC terms. Vertical wise in CC terms Transportation & Sustainability grew by 3.5% & 4.4% QoQ while Connectivity declined by 2.3% QoQ. EBIT margins at group level stood at 14.7%, up 50 bps QoQ. Normalised Core services EBIT margin excl. exceptional items improved by ~93 bps QoQ to 16.1% due to the tailwinds of rationalisation in SG&A expenses. The company during the quarter won order intake of US$ 2193.2 mn, down 12% QoQ and it won 6 large deals with total contract potential of US$ 48.8 mn
Views: The company is guiding for 15-20% revenue growth in FY24 led by increased traction in aerospace vertical. It also expects normalised EBIT margins to improve by 150-250 bps YoY.
Impact: Positive