Cyient Q3 Results: Net profit drops 31.7% to ₹122.3 crore, revenue up 4% QoQ; stock gains 6%

Cyient Q3 Results: Cyient announced its October-December quarter results for fiscal 2024-25 (Q3FY25) on Thursday, January 23, reporting a drop of 31.7 per cent in net profit to ₹122.3 crore, compared to ₹179 crore in the preceding July-September quarter of FY25. The engineering and IT services company's revenue from operations in the third quarter of the current fiscal rose 4.2 per cent to ₹1,926.4 crore, compared to ₹1,849 crore in the September quarter. 

Cyient was hurt by slower growth in its biggest segment and higher costs during the December quarter. Growth in Cyient's transportation division — which contributes 30 per cent to the company's biggest unit, digital, engineering and technology — has eased over the past few quarters due to delays in project starts in the aerospace segment and slowdown in the rail segment.

Also Read: Cyient Q1 Results: Net profit rises 45% to ₹168 crore, revenue up 35%; check details

Cyient Q3 Results: Key Metrics

The Hyderabad-based company's total expenses rose nine per cent during the December quarter, led by a 26 per cent jump in its cost of materials consumed and a six per cent rise in employee expenses. Revenue from the company's digital, engineering and technology segment, which contributes more than 76 per cent to its total revenue — fell one per cent. 

The IT major's smaller design-led manufacturing business, Cyient DLM, posted a 38 per cent rise in revenue. Ahead of the announcement of Q3FY25 results, shares of Cyient rose six per cent to hit an intra-day high of ₹1,807.90 before settling 2.72 per cent per cent higher at ₹1,752.80 apiece on the BSE.

Cyient reported revenue of ₹1,480 crore for its DET (digital, engineering, and technology) segment, a 2.1 per cent quarter-on-quarter (QoQ) increase, though a 0.8 per cent decline year-on-year (YoY). DET EBIT stood at ₹200 crore with a margin of 13.5 per cent. Cyient's net profit for the DET segment reached ₹124 crore, marking a 28.3 per cent YoY decline. 

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Cyient announced that Karthikeyan Natarajan stepped down as Cyient's Executive Director and Chief Executive Officer (CEO) effective immediately. Natarajan will take charge of the business's operations in the interim. 

"Debjani Ghosh, a Distinguished Fellow at NITI Aayog and the visionary Chief Architect of the NITI Frontier Tech Hub was inducted into the Board as an Independent Director," said Cyient in a regulatory filing to the stock exchanges.

Krishna Bodanapu, Executive Vice Chairman and Managing Director, said, “Cyient witnessed positive Q3 FY25 results, with quarterly group revenue at $228 million, growth of 4.5 per cent YoY in constant currency. Our semiconductor business continues to witness excellent traction. "

“We have expanded our partnership with Allegro Microsystems and established a Center of Excellence (CoE) at our Manikonda campus to develop magnetic sensors and power semiconductor products for the automotive industry. The CoE will be crucial in developing power integrated circuit product portfolios, components in electric vehicles, advanced driver-assistance systems, and other automotive applications,” said Bodanapu.

Also Read: Cyient approves sale of 14.50% stake worth 1.15 crore shares in Cyient DLM via block deal

He added that the development strengthens Cyient's position as a leading partner for companies seeking to develop and manufacture cutting-edge semiconductor products. “Further, we are delighted to announce that we have secured approval from our Board of Directors to explore additional capital raise options for our recently announced Semiconductor subsidiary. This aligns with our strategy for the semiconductor business towards capital readiness and to drive accelerated growth in the near-medium term.”

The IT major's order intake for the October-December quarter hit an all-time high of $312.3 million, with nearly 100 per cent QoQ growth and a five per cent increase YoY. The company also won 13 large deals in its DET segment, contributing to a contract value of $234.5 million for Q3 FY25.