Cyient net profit down 12% to ₹95 crore

Engineering and technology solutions company Cyient has reported a fall in net profit at ₹95.4 crore in the third quarter ending December 31, 2020, as against ₹107.6 crore in the corresponding period last year.

The revenues fell to ₹1,066.2 crore in the quarter as against ₹1,155.7 crore in the comparable quarter last year.

“The third quarter results are in line with our expectations, we recorded a revenue of $141.4 million, which was higher by 4.1 per cent over the previous quarter and lower by 10.4 per cent when compared to the comparable quarter previous year in constant currency,” Krishna Bodanapu, Managing Director and Chief Executive Officer, Cyient, said.

The design-led manufacturing (DLM) business contributed $26 million grew by 24.8 per cent quarter-on-quarter and 72.4 per cent year over the comparable quarter previous year.

“We continue to focus on improving operational efficiency and executing actions to bring growth back in the business. The new organisation structure implemented in the last quarter is settling in well,” he said.

“We expect the recovery in the business in the fourth quarter with services business growing sequentially, driven by growth across segments except for aerospace and defence which is expected to remain flat,” he said.

“Our outlook for the financial year remains unchanged wherein we expect a double-digit de-growth in revenue,” he said.

Attrition

The number of employees fell to 12,187 in the third quarter when compared to 14,472 in the same quarter last year. The voluntary attrition rate fell to 13.2 per cent from 19.7 per cent in the comparable quarter last year.