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BENGALURU: Hyderabad-based IT services company Cyient Ltd expects to bounce back strongly in FY22 driven by growth from some of its key verticals and customers.

“Next year, we expect growth to come from verticals like rail transportation, communications, semiconductor, and mining. The aerospace industry is on a recovery path and we expect it will gain momentum next year," Krishna Bodanapu, managing director & chief executive officer, Cyient said in a letter to shareholders in the annual report 2020-21.

“Our DLM (design-led manufacturing) business is also poised for robust growth…DLM’s performance validates our strategy of investing in this area to offer a distinctive design and manufacturing value proposition to our customer," Bodanapu said.

During FY21, Cyient benefitted from the accelerated deployment of 5G networks, which represents about 10% of the total revenues. The rail transportation business grew on the back of recovery in key accounts and ramp-up of new engagements.

“Overall, this sector is seeing increased infrastructure projects that are creating demand across the engineering segment," Bodanapu said.

In line with Cyient’s mergers and acquisitions (M&A) strategy, it acquired Integrated Global Partners (IGP), a specialist Australian consulting firm, to expand its offerings for the local and regional resources sector. Mining remains a focus industry and Australia presents a strategic growth region.

“M&A is a key element of our growth strategy and we will continue to leverage the cash available in the business to focus on strategic and tactical acquisitions," Bodanapu said.

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