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Cyient’s Q2 net profit declines 22.5 per cent

Cyient, formerly Infotech Enterprises, has registered a revenue of ₹1,159 crore in the quarter September 30, 2019, as against ₹1,187 crore in the same quarter last year, showing a decline of 2.4 per cent.

The firm posted a net profit of ₹98.5 crore in the quarter as against ₹127 crore in the comparable quarter last year, a decline of 22.5 per cent.

Cyient’s CEO, Krishna Bodanapu, said that the results were in line with the expectations. Asked about the decline in turnover and net profit, he said: “It’s cyclical. We witnessed a good growth in the first two quarters. We will continue to grow.”

“In constant currency, our revenue for the quarter would have been $165.4 million, which is the quarterly average of last year’s revenue,” he said.

The firm faced headwinds in the form of a wage hike ( about 7-8 per cent) and one-time restructuring costs.

The Board has declared an interim dividend of ₹6 per equity share (of ₹5 each) for FY20. It has set October 31, 2019, as the record date. The dividend payout will happen on November 6.

“We continue to make steady progress despite the near-term headwinds. The quarter performance is in line with our expectations with a quarter-on-quarter growth of 4.9 per cent in dollar terms,” said Ajay Aggarwal, President and Chief Financial Officer, Cyient.

Source: The Hindu