The top line and bottomline of engineering solutions firm Cyient have been impacted by the Covid-19 pandemic. The revenue of the firm in the fourth quarter ended March 31, 2020, fell to ₹1,073.6 crore from ₹1,163 crore in the same period last year, showing a decline of 7.7 per cent.

Profit after tax (PAT) fell by 60 per cent to ₹75.4 crore in the fourth quarter from ₹188 crore in the comparable quarter last year.

“Our performance was below expectations both on revenue and margin terms largely due to the impact of Covid, which was significant on many parts of our business,” Krishna Bodanapu, Managing Director and Chief Executive Officer of Cyient, said.

Lower utilisation during the quarter due to Covid preparedness also impacted the margin, he added. In dollar terms, the revenues for the quarter stood at $149.2 million, which is 3.7 per cent lower quarter-on-quarter.

“We are preparing to secure the future in these challenging times with an aggressive cost control and optimisation plan with primary focus on liquidity and cash. This includes rigorous initiatives on collections, working capital cycles, receivables, payables and discretionary cost control,” Ajay Aggarwal, President and Chief Financial Officer, said.

“We expect our margins to strengthen in FY21 where the full benefits of improved operational efficiency will be visible. The Covid-19 pandemic has slowed down the positive momentum that we had seen building in the overall performance,” he pointed out.

The firm posted revenues of ₹4,427 crore in the financial year 2019-20 as against ₹4,617.5 crore, showing a decline of 4.1 per cent.

Attrition

The involuntary attrition rate has gone up in the quarter to 9.8 per cent from 4.6 per cent in the same quarter last year.

The voluntary attrition is a tad lower at 18.9 per cent (19.9 per cent) in the quarter. At the end of the financial year, the firm has about 13,859, down from 15,084 last year.

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