From the Wires
STRONG growth in Revenue, profit and EARNINGS in q2 2018
- QoQ revenue growth of 6.7% at $150.1 Mn
By: PR Newswire
Oct. 12, 2017 12:44 PM
HYDERABAD, India, Oct. 12, 2017 /PRNewswire/ -- Cyient (Estd: 1991, NSE: CYIENT), a global provider of engineering, manufacturing, geospatial, network and operations management services to global industry leaders, today reported its consolidated financial results for the second quarter (Q2) of FY 2018 ending September 30, 2017.
Message from the Management
Building on our strategy of Design, Build, Operate and Maintain, Cyient Defense Services Inc. signed a definitive agreement to acquire 100% equity shares in B&F Design Inc. This acquisition adds to our tooling design and manufacturing capability. This quarter we also signed an exclusive software licensing agreement with Elpis, a startup software company from Portland, Oregon in USA, that provides innovative machine learning meter and voltage signature technology. Through this agreement, Cyient and Elpis will jointly pursue utility business opportunities, by leveraging our complementing solutions and technology, respectively.
Our outlook for FY18 is strong, backed by a strong pipeline and order backlog. We expect a double digit growth in our services business while DLM business is expected to grow around 20%. Our margins are expected to improve by 50bps driven by improvements in operational efficiency through the year. We expect to deliver a double digit earnings growth in the year."
Mr. Ajay Aggarwal, Chief Financial Officer, said, "I am pleased to share that Q2FY18 and FY18, respectively, have been and are shaping well towards profitability in line with our expectations. The focus on operating profit has showed up well on operating profit growth and operating margin expansion. Cyient continues to have a healthy cash balance of $150.1 Mn. We signed an agreement to acquire B&F Design Inc. to strengthen our aerospace service offering and also divested our stake in IASI to remain focused in our pursuit. We continue to act on investor feedback and have increased our dividend payout from 30% to 40%. We will continue to focus on organic and inorganic strategic investments. We expect this momentum to continue in FY18. Cyient will continue to focus on growth, improvement in operating margin, cash generation and thus maximizing well rounded focus on the value for our shareholders."
Aerospace & Defense
We are witnessing strong growth in North America and Europe and our pipeline for Design-Build Maintain (DLM) projects continues to get stronger. We have rolled out a new process Integrated Product Development Process (IPDP), a framework that integrates business and technical processes to ensure flawless execution in product design, testing and manufacturing. This will help us with seamless delivery of Design-Build-Maintain projects to global OEMs and Tier 1 suppliers.
Despite the seasonal challenges we typically face in Q3, we expect a strong growth through the year driven by continued growth in key accounts and two large project wins with immediate timelines.
Telecom wireless strategy execution is in progress. We see strong growth coming from small cells deployment and 5G planning, and we are putting plans to address this opportunity globally. We are also evaluating inorganic pursuits to build strong capabilities to be an end to end player for "plan-build-operate."
Our outlook for the year continues to be strong we expect the growth to be driven by growth in some of our key client engagements.
Utilities & Geospatial
We had a couple of new project wins in North America this quarter. We expect stronger revenue growth through the year, driven by the ramp up in key clients, growth in new business and a recovery in our revenue from Cheddar business.
We were approved as a potential supplier for two rail operators in Europe and Australia, in addition to two new client acquisitions. This augurs well with our strategy to expand our presence in the operator space as the future growth engine. We were approved as a member of the UK Rail association RSSB (Rail Safety Standards Board) in addition to our active membership in the VDB (Germany), the ARA (Australia).
Our strategy execution continues to gain momentum, especially around Rolling Stock and Signaling solutions. We have also embarked on a journey to accelerate our proactive investments in the emerging areas of Digitalization and Design Led Manufacturing.
Our outlook for the year continues to be positive supported by industry growth in our focus segments of Rolling Stock and Signaling, our strong long term relationships and a healthy opportunity pipeline.
Industrial, Energy and Natural Resources
There are signs of recovery in both the Mining and the Oil & Gas sectors. One key highlight for the quarter is the new client partnership that is expected to grow to over 100 people by the end of the fiscal year.
Key areas of focus are continued traction in DLM and continued execution of the connected equipment strategy.
Semiconductor, IoT and Analytics
The Semiconductor industry is experiencing a strong growth especially in segments like Automotive, Memory and Cloud. We expect a double digit growth through the year driven by new engagements in the areas of mixed signal verification and validation.
Medical & Healthcare
The industry continues to be strong with most medical technology companies showing robust growth across all markets. We expect strong growth in the business driven by services as well as manufacturing.
Our outlook for the year continues to remain strong and we expect to see a double digit growth driven by strong order backlog, growth in the offset segment and new synergy business and a strong pipeline.
Cyient (Estd: 1991, NSE: CYIENT) provides engineering, manufacturing, geospatial, network and operations management services to global industry leaders. Cyient leverages the power of digital technology and advanced analytics capabilities, along with domain knowledge and technical expertise, to solve complex business problems. As a Design, Build and Maintain partner, Cyient takes solution ownership across the value chain to help clients focus on their core, innovate, and stay ahead of the curve. Relationships form the core of how Cyient works. With nearly 14,000 employees in 21 countries, Cyient partners with clients to operate as part of their extended team, in ways that best suit their organization's culture and requirements. Cyient's industry focus includes aerospace and defense, medical, telecommunications, rail transportation, semiconductor, utilities, industrial, energy and natural resources.
For more information, please visit www.cyient.com.
Follow news about the company at @Cyient.
All the references to Cyient's financial results in this update pertain to the company's consolidated operations comprising wholly-owned subsidiaries Cyient Europe Limited; Cyient Inc.; Cyient GmbH; Cyient KK; Infotech Geospatial (India) Pvt. Ltd. (IGIPL): partly owned subsidiaries Cyient Insights Private Limited; Cyient DLM Private Limited; joint venture Infotech HAL Ltd (HAL JV) & associate company Infotech Aerospace Services Inc. (IASI).
The income statement and cash flow provided is in the internal MIS format. MIS format is different from the income statement published as part of the financial results, which is as per the statutory requirement.
View original content with multimedia:http://www.prnewswire.com/news-releases/strong-growth-in-revenue-profit-and-earnings-in-q2-2018-300535813.html
Latest AJAXWorld RIA Stories
Subscribe to the World's Most Powerful Newsletters
Subscribe to Our Rss Feeds & Get Your SYS-CON News Live!
SYS-CON Featured Whitepapers
Most Read This Week