Cyient defers decision
on share buy-back
IT firm Cyient said its board would discuss the proposed share buy-back issue at a later date. The board of directors of Cyient decided to take up discussion on the buyback at a later day, the company said. sharing results for quarter ended December 31 approved by the meeting. The firm has posted a net profit of ₹92.5 crore, 6% higher than the ₹87.1 crore reported in the corresponding period of the previous year. Net profit declined by 37.29% from ₹127 crore recorded in the quarter ended September 30. Revenue from operations in the third quarter rose 20.75% to ₹1,187 crore.
It was a flat growth on a sequential basis as the company had posted revenue from operations of ₹1,186 crore in the quarter ended September.
Managing director and CEO Krishna Bodanapu said “Q3 is generally a slow quarter and we recorded a revenue de-growth of 1.5% in constant currency over the previous quarter. However, we witnessed a growth of 10.7% in constant currency YoY.”
The QoQ growth, he said in a release, was impacted by de-growth in the semiconductor and communications business units wherein some of the key deals expected got pushed out to the next quarter. Due to seasonality in the business DLM (design-led manufacturing) segment witnessed a de-growth of 10% QoQ. However, the business grew by 69.7% YoY.
President and CFO Ajay Aggarwal said it was the highest-ever rupee revenue and operating profit ₹174 crore) for a quarter. There is a significant focus on profit improvement initiatives both on improving quality of revenue and cost positions and will show up in results in future, he said.
More deliberations
On the decision pertaining to the buyback, a regulatory filing by the company said the Board of Directors felt that further deliberations were required in order to take a decision on the proposal of buyback.
On Thursday, Cyient shares touched an intra-day high of ₹636.20 before closing with a gain that was less than 1% at ₹627.80.
