- 26 Apr 2024
- ICICI Securities
Revenue Missed lower end of guidance band in FY24, Revenue guidance of high single digit growth in FY25
CYIENT - 1768 Change: -29.90 (-1.66 %)News: Cyient at group level reported revenue of US$ 224 mn, up 2.4% QoQ & 5.2% YoY (5.3% in CC terms). In DET business the company reported revenue of US 179.3 mn, up 0.1% QoQ (down 0.5% QoQ in CC terms). Geography wise EMEA (36.2% of mix) grew by 3.5% QoQ while Americas (43.7% of mix) & APAC (20.1% of mix) declined by 0.4% & 4.7% respectively. Segment wise in CC terms Sustainability & New Growth areas grew by 0.7% & 1.2% respectively while Transportation & Connectivity declined by 1.5% & 2.3% respectively. The company in DET business reported flat EBIT margin of 16% while at Group level EBIT margin improved by 10bps QoQ to 14.4%. The company in Q4 reported PAT of INR 173.5 crore with a PAT margin of 11.7% in DET business. The company in Q4 reported order intake of US$ 227.8 mn, down 23.4% QoQ & up 7.1% YoY. The company declared final dividend of INR 18 per share in Q4FY24. The company’s net employees during the quarter declined by 217 to 15,461 and attrition declined by 130 bps to 17.1%. For FY24 the DET business reported revenue of US$ 714 mn, up 12.9 % (12.6% in CC terms). The company reported normalized EBIT margin of 16.1%, up 240 bps in DET business while normalized PAT margin came at 11.7%. The company for FY25 is guiding for revenue growth in high single digit & EBIT margin in the range of 16% in DET business.
Views: The company had guided for revenue growth of 15-20% & normalized EBIT margin improvement of 150-250 bps in DET business for FY24. The revenue guidance was later revised to 13-13.5% in Q3 as the macro headwinds impacted the business. The company achieved the EBIT margin range but couldn’t meet even the lower end of revenue guidance indicating that the demand environment is further weakening. The revenue guidance of high single digit growth in FY25 is expected with recovery in second half implying that near term remain and the guidance could be revised further as the year progresses.
Impact: Negative