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Engineering services firm Cyient (formerly Infotech Enterprises) has posted a net profit of Rs 94 crore in the fourth quarter, showing a growth of 34 per cent over Rs 70 crore in the comparable quarter last year. The net profit, however, saw a decline of 7 per cent over the profit in the third quarter.
The firm posted revenues of Rs 730 crore (Rs 595 crore) in the fourth quarter, showing a growth of 23 per cent.
Cyient Founder and Executive Chairman B V R Mohan Reddy announced a final dividend of 160 per cent (including the interim dividend of 60 per cent) for the financial year 2014-15. For every share of Rs 5, the shareholders will get a dividend of Rs 8.
The company’s scrip gained 2.67 per cent to close at Rs 490 on Bombay Stock Exchange on Thursday.
Addressing a press conference he said business prospects continued to be strong despite the challenge of foreign exchange fluctuations.
The company, which saw a gross addition of about 3,000 employees in 2014-15, is projecting to hire a similar number this year as well. The attrition rate had gone up significantly from about 15 per cent in the fourth quarter of last year to 27 per cent.
Cyient Chief Executive Officer (CEO) Krishna Bodanapu, however, attributed the sharp increase in the attrition to a recent change in the policy of how the company regarded unauthorised absence. “We used to keep them on the rolls as we finalised the numbers for about six months. But we have decided to change this and are removing them from the count after a few days of absence,” he said.
For the full year, the net profit grew by 33 per cent to Rs 353 crore and revenue by 24 per cent to Rs 2,735 crore.
Krishna Bodanapu said that there would be some pressure on the first quarter margins due to upcoming salary increases. “But we expect this to be lower as the company would get a higher percentage of offshore revenue. We are also planning to increase utilisation rate,” he said.
The USA contributed 63.7 per cent (59.20 p.c.) to the revenues in the fourth quarter, followed by EMEAI (Europe, Middle-East, Africa, India) with 25.8 per cent (31.4 per cent) and Asia-Pacific 10.5 per cent (9.4 per cent)
Forex woes
Cyient Chief Financial Officer Ajay Aggarwal said that the worst might be over in terms of currency volatility.
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