HYDERABAD: IT firm Cyient’s net profit fell 22.5 per cent at Rs 98 crore for the quarter ended September 2019 as against a net profit of Rs 127 crore in the corresponding period a year ago.
The company’s revenue too declined, but by a modest 2.4 per cent at Rs 1,159 crore compared to Rs 1,187 crore.
It also declared an interim dividend of Rs 6 per share. In dollar terms, net profit and revenue fell 23 and 3 per cent to $13.8 million and $164.2 million respectively.
The company’s management, however, said the second-quarter results were in line with its projections.
“Excluding the one-off spends, the EBIT (earnings before interest and taxes) would have been 105 basis points higher quarter-on-quarter and our services EBIT margin would have been higher by 158 basis points quarter-on-quarter,” said Krishna Bodanapu, MD and CEO, Cyient. Its workforce as on September stood at 14,869 with voluntary attrition at 18 per cent.
“We are confident of delivering steady growth in our services business for the rest of the year. We remain strongly focused on growth, improvement in operating efficiencies and cash generation and thus, maximising the value for our shareholders,” said Ajay Aggarwal, president and CFO, Cyient.
While the company’s aerospace and defence business unit turned in nearly 8 per cent growth over the previous quarter, services segment witnessed a de-growth due to near-term industry uncertainties. But Cyient expects improvement from next year.
The company is anticipating seasonality challenges in Q3, and hence its forecast for next quarter remains flat.