Cyient posts ₹103-cr profit in Q4; to hire 2,000 people in current fiscal

KV Kurmanath Hyderabad | Updated on April 24, 2021

Krishna Bodanapu, MD and CEO   -  Businessline

Announces dividend of ₹17/share for FY21

Cyient, an engineering and digital technology solutions company, will hire 1,500-2,000 people in the current financial year.

“The process has begun. The demand for human resources is high in the market, particularly for some skills such as technology support and digital technologies,” Krishna Bodanapu, Managing Director and Chief Executive Officer of Cyient, told Business Line.

He said the company is on the path of recovery. “We are 10 per cent lower than what it was at the peak,” he said.

Q4 performance

The firm has registered a profit after tax of ₹103 crore in the fourth quarter ended March 31, against ₹46 crore in the same quarter the previous year. It incurred lesser employee benefits of ₹529 crore in the quarter against ₹599 crore in the same quarter last year.

It registered a total income of ₹1,133 crore (₹1,127 crore).

For the full year, it registered a net profit of ₹364 crore (₹341 crore) on a turnover of ₹4,272 crore (₹4,585 crore).

The board, which met on Thursday to consider the results, announced a dividend of ₹17 a share (of ₹5 each) on face value of ₹5 each, with the total payout aggregating ₹187 crore. The 30th annual general meeting will be held on June 17.

“Our performance this year was as per expectations. Despite the headwinds in aerospace, we continued to witness strong momentum in other sectors such as communications, utilities and mining,” he said.

Gloom in aviation sector

The gloom in aviation sector, which has taken a beating globally due to the pandemic, resulted in a dip of 35-40 per cent in revenues from that vertical for the company. He, however, said that the industry has seen the bottom and that it won’t fall any further.

“Good news is that the decline (in aviation sector) has stopped. But the recovery will take some time,” he said.

It was the communications vertical that drove the growth for Cyient in the fourth quarter.

He said the outlook for 2021-22 is strong with growth expected across sectors. “We have and will continue to make significant investments in key growth areas such as digital technologies and embedded software,” he said.

Leadership rejig

BVR Mohan Reddy, who founded the company 30 years ago, has stepped down as Executive Chairman. He

however, will continue to be a part of the board as a Non-Executive Director. MM Murugappan, who has been on Cyient’s board as an independent director since 1997, has been appointed as the Non-Executive Chairman.

Published on April 23, 2021

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