Cyient DLM Q1 results: Company reports strong YoY growth in revenue and EBIDTA, PAT declines

The company reported strong year-on-year (YoY) growth in both revenue and EBIDTA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The revenue increased by 27.6% YoY, reaching ₹2,171 million, while EBIDTA saw a significant growth of 72.6% YoY, amounting to ₹200 million. However, the Profit After Tax (PAT) experienced a decrease of 15.2% YoY, amounting to ₹54 million.

The company's order backlog remained robust, supported by confirmed Purchase Orders (POs) and forecasts. The order backlog reached ₹24,997 million, representing a growth rate of 9.2%.

In terms of highlights for the quarter, the company successfully listed Cyient DLM on the NSE and BSE, receiving an excellent response from the investor community. The company also showcased a strong pipeline of $708 million, backed by significant deals from major Aerospace and Defense clients.

Regarding key wins and pipeline, the company secured new projects from Aerospace and Defense customers with a total contract value (TCV) of $26.9 million spread over 2-5 years. The quarter saw an order intake of $33.6 million, contributing to the growth and stability of the order backlog.

The company demonstrated strong operating performance, resulting in a remarkable 72.6% YoY increase in EBIDTA. However, it faced higher finance costs due to increased borrowings and rising interest rates. Additionally, the other income for the quarter was lower YoY, primarily attributed to the absence of unrealized forex gains seen in the previous fiscal year 2023.

In Q1 FY24, the company reported revenue growth in various segments. Aerospace and Defence segments experienced growth of 22% and 12%, respectively, supported by the Make In India initiatives and off-sets. The Industrial Segment showed a significant YoY growth of 75%. However, the Med Tech segment recorded a de-growth of 14% YoY due to lower demand in COVID-related businesses.

The Printed Circuit Board Assembly (PCBA) business remained prominent across all industry segments. Both the PCBA and Cables businesses witnessed substantial growth of over 60% YoY. However, the Box-build revenue declined by 23% due to seasonal factors. The "Others" category, accounting for 2% of the business share, includes Precision Machining Revenue.

The company's export business saw higher demand in the Industrial and Aerospace segments, contributing to a higher export share of 69%, which includes Deemed exports of 13%.