Reduced billing days drag Cyient’s net profit by 14% to Rs86.84 crore
Cyient's revenue grew 9.8% to `781.79 crore from `771.66 crore a year ago
Hyderabad: Engineering services provider Cyient Ltd on Thursday reported a net profit drop of 14% to ₹ 86.84 crore compared to year-ago period for the quarter ended 31 December due to lower working days.
The company’s revenue grew 9.8% to ₹ 781.79 crore from ₹ 771.66 crore a year ago.
Its operating margin, or return on sales, fell to 14.1% from 16.3% in the previous quarter as the number of paydays remained constant while working days were low, leading to decreased billing days.
Costs increased by 17.6% compared to a year ago, putting pressure on net profit.
“We have been adding manpower which increased our cost to deliver the additional workload in Q3 and for the forecasted growth in Q4 and beyond," Krishna Bodanapu, managing director and chief executive officer of Cyient said in a statement.
The company’s business in utilities, semiconductor, communications, energy and natural resources and geospatial sectors showed a decline in growth.
Revenue contribution of Cyient’s top five clients fell 1.9 percentage points annually even as its main markets of Americas, Europe, West Asia, Africa and India contributed lesser income.
Cyient’s stock fell 3.98% to ₹ 468.25 on the BSE on a day the benchmark Sensex declined 0.33% to close at 24,772.97 points.
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