IT company Cyient shares nosedived 19.99 per cent to hit a fresh 52-week low of Rs 1,402.25 per share on Friday, January 24, 2025.
The fall in Cyient share price came after the company posted a weak set of results in the December quarter of financial year 2025 (Q3FY25).
Cyient’s profit fell 31.7 per cent quarter-on-quarter (Q-o-Q) to Rs 122.3 crore in Q3FY25, from 179.1 crore in the September quarter of financial year 2025 (Q2FY25).
Meanwhile, revenue from operations, rose 4.2 per cent Q-o-Q to Rs 1,926.4 crore in Q3FY25, from Rs 1,849.1 crore in Q2FY25.
Operating performance was weak too. Earning before interest, tax, depreciation and amortisation (Ebitda) dropped 14.4 per cent sequentially to Rs 279 crore in Q3FY25, from Rs 296.7 crore in Q2FY25.
Subsequently, Ebitda margin squeezed 250 basis points (bps) to 14.5 per cent in Q3FY25, from 16 per cent in Q2FY25.
In Y-o-Y terms, Cyient’s profit dropped 16.9 per cent to Rs 122.3 crore in Q3FY25, from Rs 147.2 crore ion Q3FY24.
Its revenue from operations rose 5.8 per cent Y-o-Y to Rs 1,926.4 crore in Q3FY25, from Rs 1,821.4 crore.
Operationally, Ebitda slipped 14.4 per cent Y-o-Y to Rs 279 crore, from Rs 326.1 crore in the same quarter a year ago.
Therefore, margin also contracted 340 bps to 14.5 per cent in Q3FY25, from 17.9 per cent in Q3FY24.
Analysts at Nuvama have cut FY25E/26E earnings per share (EPS) sharply by -10.8 per cent/-4.5 per cent on lower growth and margins.
“We are updating FY26E/27E USDINR assumption to 86.5 and rolling over to 20x FY27E PE, yielding a target price (TP) of Rs 1,660 (earlier Rs 1,700); retain ‘Hold’,” Nuvama said in a note.
About Cyient
Cyient, founded in 1991, is a global engineering and technology company. The company offers a broad range of services across engineering, manufacturing, data analytics, and digital technology, assisting businesses in various industries to design, build, operate, and maintain their products.
With a focus on innovation, Cyient supports its customers in areas such as network transformation, clean energy, and geospatial data improvement, helping them navigate complex challenges and accelerate their growth.
Serving over 300 customers worldwide, including 30 per cent of the top 100 global innovators, Cyient has built a diverse portfolio across multiple sectors. The company operates through specialised business units, including aerospace & defense, transportation, industrial & energy, healthcare, and telecommunications.
Additionally, Cyient’s design-led manufacturing (Cyient DLM) division ensures high-quality production processes, further boosting its ability to meet the evolving needs of its global clientele.
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