How come the profit growth of Cyient was so strong despite tepid sales?
Answer
Answer
For the fourth quarter ended Mar-21, Cyient reported 8.1% growth in sales revenues at Rs.1,181 crore. Sequential revenues were marginally lower for the quarter by -0.19%. In terms of segmental revenues, Cyient reported 12.8% positive growth in Services revenues at Rs.983 crore but the design led manufacturing business saw -10.8% fall in revenues at Rs.197.60 crore. The board declared final dividend of Rs.14 per share translating into full year dividend (including the interim dividends) of Rs.24 per share.
Cyient Ltd
Rs in Crore
Mar-22
Mar-21
YOY
Dec-21
QOQ
Total Income (Rs cr)
₹ 1,181.20
₹ 1,093.10
8.06%
₹ 1,183.40
-0.19%
Net Profit (Rs cr)
₹ 154.20
₹ 103.10
49.56%
₹ 131.80
17.00%
Diluted EPS (Rs)
₹ 14.03
₹ 9.37
₹ 12.01
Net Margins
13.05%
9.43%
11.14%
Profit after tax (PAT) for Q4 was up 49.6% at Rs.154.20 crore yoy and 17% higher on QOQ basis. The operating profit thrust in the quarter came from IT services which with operating profits growing 47.9% at Rs.159 crore. However, operating profit in design led manufacturing fell by -5.8%. Net margins stood at 13.05% in Mar-22 quarter sharply higher than the 9.43% NPM in Mar-21. The net profit margins were higher by 191 basis points on a sequential basis.