Hyderabad: Hyderabad-based IT services and engineering company Cyient witnessed 6.03 per cent drop in profit after tax for the first quarter of the financial year 2019 at Rs 82.5 crore in comparison to same quarter last year at Rs 87.8 crore. In addition, the company’s PAT quarter-on-quarter also dipped by 32 per cent from Rs 121.5 crore in the fourth quarter of FY18.
However, the company’s revenue grew by 19.07 per cent from Rs 907 crore in Q1 of FY18 to Rs 1,080 crore in Q1 of FY19 and QoQ there was a slight growth of 1.71 per cent from Rs 1,061 in Q4 of FY18.
Commenting on the results, Krishna Bodanapu, managing director and chief executive officer, said, “Q1 FY 19 has been in line with our expectation. The services business witnessed a growth of 1.1 per cent QoQ in constant currency, while DLM business witnessed de-growth due to cyclicality in the business. Our top customer revenue grew by 6.4 per cent YoY. Our Aerospace and Defense business grew by 15.4 per cent YoY which reflects that the momentum is back after a few tepid years. Our outlook for FY 19 continues to remain strong. We expect a double digit growth in operating profit through the year.”
The company made two key acquisitions during the quarter – AnSem N V that specialises in advanced analog, radio frequency and mixed-signal integrated circuit design and a small manufacturing facility in North America to strengthen its capabilities. It also signed a definitive agreement to acquire 100 per cent ownership of Cyient Insights Private Limited (Cyient Insights), a data science company whose 51 per cent stake was acquired in 2014. The quarter also formed a joint venture Cyient Solutions and Systems with Israel-based BlueBird Aero Systems that will indigenise, manufacture, assemble, integrate, and test advanced UAV systems at its production facilities in Hyderabad.
In terms of geographies, the company saw an year-on-year growth of 17 per cent, 14 per cent and 13 per cent in Europe, Middle East and Africa (EMEA), NAM and Asia Pacific region respectively. Sector-wise, aerospace and defence saw 26 per cent revenue growth while transportation and Semiconductor, Internet of Things and Analytics saw 28 per cent and 35 per cent growth respectively.