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Informist, Thursday, Oct. 16, 2025

By Gopika Balasubramanium

MUMBAI – The manufacturing and engineering technology solutions company Cyient Ltd.'s bottom line missed Street expectations by a small margin and fell in high teens on a sequential basis mainly due to rise in expenses. The company's top line was higher than expected as all its segments posted growth, but the growth in revenue was lower than the rise in costs.

The company's net profit fell over 17% on quarter and around 29% on year to INR 1.28 billion. The net profit was lower than consensus estimate of INR 1.52 billion. Revenue from operations rose 4% sequentially but fell around 4% on year to INR 17.81 billion. It surpassed expectations of INR 16 billion. 

The company's revenue in dollar terms was $203.50 million, down 7.8% on year. In constant currency terms, it was down 8.4%. The company's earnings before interest and tax margin was 9.4%, down 308 basis points on year.

"This quarter, we added seven new customers across diverse industries...," Sukamal Banerjee, executive director and chief executive officer of Cyient, was quoted as saying in a press release. "We also experienced renewed momentum across key verticals," he said.

Cyient's revenue from digital, engineering, and technology for the quarter rose 3.3% on quarter and 4.5% on year to INR 14.39 billion. This accounted for nearly 81% of company's total revenue from contracts with customers. In dollar terms, the segment revenue was $164.4 million, up 1% on quarter, according to the company's investor presentation. In constant currency terms, this segment's revenue grew just 0.5% sequentially. The segment's EBIT fell 7.5% on year to INR 1.75 billion and its EBIT margin rose 16 bps on quarter but fell 157 bps on year to 12.2%.

The Hyderabad-based company's revenue from design led manufacturing vertical rose nearly 12% on quarter but declined over 20% on year to INR 3.11 billion. Its semiconductor vertical posted a near 15% on quarter rise to INR 542 million.

The company's total expenses for the quarter ended September rose over 5% on quarter and were largely unchanged year-on-year at INR 16.50 billion. This sequential rise was due to 4% increase in its employee benefits costs to INR 10.06 billion, which accounted for 61% of total expenses in the September quarter. Other expenses, the second largest item under expenditure, rose around 6% on quarter to nearly INR 3.70 billion. The company's costs of material consumed rose nearly 16% sequentially to INR 1.87 billion.

For the half year ended September, the company's revenue from operations fell nearly 1% on year to INR 34.93 billion. Net profit for the period was INR 2.81 billion, down nearly 13% on year. The company said it will pay INR 16 per share as interim dividend. On the National Stock Exchange, the company's shares closed 5% higher at INR 1,180.60.  End  

US$1 = INR 87.82

Edited by Ashish Shirke

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