Cyient Ltd. has posted a nine per cent increase in the net profit during the second quarter, ended September 30, on a year-on-year basis.
Announcing the results, the company said the Board of Directors has declared an interim dividend of Rs.3 per share (of a face value of Rs.5 each) that would aggregate Rs.40.61 crore, including dividend distribution tax.
According to the consolidated results, the net profit was Rs.98.52 crore as against Rs.90.18 crore in corresponding period of previous fiscal. Total income from operations at Rs.771.64 crore was 15 per cent higher compared to the Rs.672.39 crore in the y-o-y period.
Managing Director and Chief Executive Officer Krishna Bodanapu said “budget cuts at couple of large customers impacted some growth. But, with strong business pipeline across our services business and Rangsons [a company acquired by Cyient in February] we are confident that revenue momentum will continue in Q3 and beyond.”
Segment wise, Product Realisation, a new segment helped push the overall revenue. The revenue from Product Realisation was Rs.66.47 crore. In the quarter ended June 30, the first since Cyient entered the segment, it was Rs.38.40 crore.
Revenue from DNO (data transformation, networks and operation) was down on y-o-y at Rs.256.75 crore (Rs.257.47 crore). Engineering, manufacturing and industrial products segment revenue grew 8 per cent to Rs.448.42 crore (Rs.414.92 crore). A release from the company said that the DNO’s pipeline within the IT systems business looks strong and good traction is expected. Data transformation business had a flat quarter due to budget constraints on customer end.
