Software firm Cyient has posted a 34 per cent increase in its net profit at Rs. 94 crore for the quarter ended March 31, 2015, against Rs.70 crore in the corresponding period of the previous year. Revenue has improved by 23 per cent to Rs.730 crore from Rs.595 crore.
Briefing presspersons here on Thursday, Executive Chairman B.V.R. Mohan Reddy said that the final dividend, including an interim declared in September, will be 160 per cent – working to Rs.8 per share.
For the full fiscal, the company registered net profit of Rs.353 crore, 33 per cent more compared to Rs.266 crore of the previous financial year. The revenue was 24 per higher at Rs.2,736 crore (Rs.2,206 crore). Mr.Reddy, who is also Nasscom chairman, said the company beat the association’s estimate of 12-14 per cent growth for the industry.
The Q4 performance, however, was muted on a sequential basis – net profit in third quarter was Rs.101 crore. Managing director and CEO Krishna Bodanapu attributed this to currency fluctuation, which created a “significant headwind along with the reallocation of revenue in a key client from Q4 to Q3.”
Expecting some headwind in 2015-16 first quarter too, due to salary increases planned, he said the impact will not be as much as like last year. One of the positives was the US business being very strong. Geography-wise, North America contributed to over 63 per cent of the company’s revenue, while industry wise aerospace and defence share to the revenue was highest at 34 per cent.
Voluntary attrition in Q4, higher at 27.4 per cent compared to 15.5 per cent, Mr.Bodanapu said was inclusive of those who abandoned service but figured in the database. The system of headcount was being changed. The company, he added, would continue to recruit over 3,000 people this fiscal.
Chief financial officer Ajay Aggarwal said in 2014-15 the company generated free cash flow of Rs.297 crore. On currency fluctuations, he said 70 per cent of the net flows are hedged and euro and Australian $, which saw considerable volatility, were only expected to improve.
