Cyient tumbles on weaker-than-expected Q2 numbers

NEW DELHI: Shares of Cyient tumbled over 5 per cent in Friday’s trade, following the company's September quarter result.

The stock fell 5.15 per cent to hit a low of Rs 511.05 on BSE.

The company said its consolidated net profit for the quarter declined 2.19 per cent to Rs 97.25 crore for the September quarter against Rs 99.43 crore in the year-ago quarter. Sales grew 18.27 per cent to Rs 913.64 crore for the quarter, compared with Rs Rs 772.48 crore in the same quarter last year.

The company added 23 new customers during the quarter.

Managing Director and Chief Executive Officer, Krishna Bodanapu, said, “We grew by 9.5 per cent in dollar terms and 10.3 per cent in constant currency over the previous quarter. Most of the impact due to currency (Pound) depreciation occurred in the Transportation and Utilities & Geospatial (U&G) BU due to high portion of revenue from the UK.”

Margins have improved by nearly 100 bps QoQ despite the last trench of salary hike, one off expenses and forex headwind, noted company Chief Financial Officer Ajay Aggarwal.