Cyient , a global provider of engineering, manufacturing, geospatial, network and operations management services to global industry leaders, reported its consolidated reported its consolidated financial results for the first quarter (Q1) of FY 2019 ending June 30, 2018.
Commenting on the results, Mr. Ajay Aggarwal, President & CFO, said, “I am pleased to share that Cyient is progressing well to another year of well-rounded performance with 14.3% YoY growth in dollar revenue with 13.5% YoY growth in operating profit. The quarter performance has been in line with our annual plan. Improving operating efficiencies and optimization/absorption of SG&A is the top priority for FY19. While it did not play to plan, also due to limited growth, we are committed to focus on achieving operating margin for the year. Cash generation continues to be a key focus and while in Q1 FY19, it has been lower, we are confident of H1 FY19 and full year FY19 in line with past and annual plan. The cash balance is at ₹11 Bn which is the highest ever.”
Business performance and outlook :
Aerospace & Defence
The Aerospace & Defense BU witnessed a growth of 15.4% YoY and 4.7% QoQ driven by new business from existing and new clients. Our UTC business is stabilizing and we expect to show growth this year.
The outlook for FY19 continues to be strong with the growth coming from increased volumes for key customers and increased plan, design and build work for fixed and mobile networks.
Utilities & Geospatial
The U&G BU witnessed a degrowth of 5.5% YoY and 12.5% QoQ due to delays in project commitment (utilities) and cyclicality (geospatial) together with higher costs. However, our pipeline continues to grow for both core services and IP solutions.
Our outlook for FY19 continues to be positive supported by industry growth in our focus segments of Rolling Stock and Signaling, our strong long term relationships, healthy opportunity pipeline and the increasing momentum in strategy execution.
Industrial, Energy and natural resources (IE&NR)
The I&ENR BU witnessed growth of 6% YoY and a degrowth of 3% QoQ. The YoY growth in the business was predominantly driven by strong performance in Off Highway Equipment.
Semiconductor, Internet of Things & Analytics (SI&A)
The SIA BU witnessed a growth of 34.6% YoY and 39.1% QoQ (including Ansem) driven by strong traction in existing clients and new client wins. This quarter we completed the acquisition of Belgium based fabless semiconductor company, AnSem N.V. The company specializes in advanced analog, radio frequency, and mixed-signal integrated circuit design.
Medical Technology and Healthcare
The Medical and Healthcare BU witnessed a growth of 10% YoY and degrowth of 17% QoQ. The QoQ degrowth was primarily due to particularly strong Q4 and a couple of delayed project starts. The outlook for FY19 continues to be positive in both revenue and profitability.