Cyient has announced its financial results for the quarter and year ended March 31, 2021.
During the quarter, the company reported a revenue back to pre-pandemic levels; wherein the group revenue for Q4 stood at $149.9 million, recording quarter-on-quarter(QoQ) growth of 6 per cent in $ terms. Further, Cyient’s Q4 profit after tax (PAT) (normalised) stood at Rs 1.10 billion, a QoQ growth of 16 per cent.
Further, services revenue at $119.6 million, witnessed a QoQ growth of 3.7 per cent in $ terms. Meanwhile, the company’s Q4 EBIT Margins stood at 12.6 per cent, clocking a QoQ increase of 148 bps and YoY increase of 421 bps; Highest Group EBIT Margin (normalised) in last eight quarters and second highest in five years.
As Cyient continues to put its S3 (Services, Systems, and Solutions) strategy into action, it saw broad-based growth across multiple sectors in Q4. Cyient customers reinforced their trust in the company and have recognised its delivery excellence and customer-centricity through endorsements and awards. The company retained the leadership position in engineering and R&D services for the seventh consecutive year, in the annual ratings by Zinnov, a leading independent global management and strategy consulting firm. To accelerate its Digital Business growth strategy, Cyient launched the INTELLICYIENT suite of Industry 4.0 solutions that will help drive digital industrial transformation for asset-heavy enterprises. With six digital solutions, powered by the interplay of nine technology studios, and our robust partner ecosystem, INTELLICYIENT will help enterprises globally achieve the full potential of digital transformation with IT-OT convergence.
Commenting on the results, Krishna Bodanapu, MD and CEO, Cyient said, “Our performance this year was as per our expectations. Despite the headwinds in aerospace, we continued to witness strong momentum in other sectors such as communications, utilities and mining. The design led manufacturing business grew considerably this year. Outlook for FY 22 is strong with growth forecasted across sectors. We have and will continue to make significant investments in key growth areas such as digital technologies and embedded software and focus on adding differentiated capabilities to our offerings portfolio.”
Meanwhile, Cyient announced the appointment of MM Murugappan as the Non-Executive Chairman, he served as a Non-Executive Director on Cyient’s board. Founder Chairman BVR Mohan Reddy will continue to be a part of the board as a Non-Executive Director and will play an active role in mentoring and guiding the Cyient leadership team. Reddy will continue his work in education, entrepreneurship, and leadership. He will also work with the government, educational institutions, and industry bodies in shaping the next growth phase for the industry.
Further, BVR Mohan Reddy, Founder Chairman of Cyient, said, “I am delighted and honored to have served Cyient since its inception for 30 years, first as the Chairman and Managing Director and later as the Executive Chairman. It has been a gratifying endeavor to build an enduring institution with a market value of over a billion dollars. We have created employment for about 14,000 professionals worldwide, several of whom have been associated with me for over 25 years. Our customer-centricity helped us build lasting value for our clients, some partnering for more than two decades. I have accomplished my mission of building a lasting institution and now leave Cyient in the safe hands of the next-generation leadership—Krishna Bodanapu and the team. The role of Chairman will transition to MM Murugappan, who, with an impeccable track record, has been associated with the company as a lead independent director since its IPO in 1997. I am very certain that Cyient, with its younger, competent, and agile leadership and their unwavering commitment to values, will chart newer heights in this technology-driven digital world.”
Speaking on the appointment, MM Murugappan, Non-Executive Chairman, Cyient, said, “It is indeed a great honor and privilege for me to accept Chairman Mohan Reddy’s and the board’s nomination as Non-Executive Chairman of Cyient. I have had the unique opportunity to serve on the board for over two decades and have been witness to the company’s transformation to progressively harness opportunities while ensuring high standards of governance at all times. I am confident that the Cyient team is well-positioned for the future by embracing new technologies and enhancing its product and service offerings to customers through passion, dedication, and diligence.”
Meanwhile, Krishna Bodanapu added, “After an incredible 30-year executive management role, starting with the founding of Infotech Enterprises, Mohan Reddy has decided to take a non-executive position on the board. We look to his guidance and mentorship as Cyient embarks on the next phase of our evolution. We are also fortunate that MM Murugappan will take over as the non-executive Chairman. He has been associated with Cyient for over 25 years and I have personally greatly benefitted from his guidance throughout my career in Cyient. We are privileged that an industry stalwart such as he will be our next Chairman.”
Further, Cyient also appointed Karthikeyan Natarajan, President and COO and Ajay Aggarwal, President and CFO as executive directors. Krishna Bodanapu welcomes them and said, “I am also excited that the board has decided to appoint Karthik Natarajan and Ajay Aggarwal as executive directors of the company. I am fortunate to have them on my leadership team and their appointment to the board is a very apt acknowledgement of the contribution they have made to the company and the potential they hold to help deliver accelerated growth in the next phase of the company.”