0

0

0

0

0

0

0

0

0

This article is more than 11 month old.

Cyient shares rally over 4% after Q2 net profit rises 3%

Mini

Shares of Cyient rallied over 4 percent on Friday after the company reported better than estimated September quarter earnings. Cyient, on Thursday, reported a 3.1 percent rise in Q2FY21 net profit at Rs 83.9 crore as against Rs 81.4 crore in the previous quarter. CNBC-TV18 analysts' poll had estimated a  net profit of Rs 83 crore.

Cyient shares rally over 4% after Q2 net profit rises 3%
Shares of Cyient rallied over 4 percent on Friday after the company reported better than estimated September quarter earnings.
The stock price gained as much as 4.66 percent to an intraday high of Rs 383.40 apiece on the BSE. At 11:25 am, the shares were trading 3.77 percent higher at Rs 380.10 as against 0.57 percent gains in the benchmark Sensex.
Cyient, on Thursday, reported a 3.1 percent rise in Q2FY21 net profit at Rs 83.9 crore as against Rs 81.4 crore in the previous quarter. CNBC-TV18 analysts' poll had estimated a  net profit of Rs 83 crore.
"PAT increased by 3 percent quarter-on-quarter mainly from higher operating income driven by higher volume and efficiency," the company said.
Revenue during the quarter increased 1.2 percent to Rs 1,003.3 crore from Rs 991.7 crore, QoQ. CNBC-TV18 poll estimated revenue of Rs 995 crore.
The Hyderabad-based company posted a robust operational performance as EBIT in Q2 more than doubled to Rs 109.7 crore from Rs 50.2 crore in Q1 while EBIT margin expanded by 580 bps to 10.9 percent, sequentially.
"This quarter we focused on setting up the business back on a growth path. We continued our rigour on efficiency improvement and building pipeline for the business," said Krishna Bodanapu, Managing Director and Chief Executive Officer of Cyient.
The company has won key projects that set it up for a better second half, he added.
"Our outlook for H2 is positive and we expect growth based on the outlook and pipeline across most sectors… For the year, we expect a double-digit decline in revenue and margins will be similar to FY20 margins," he added.
Jyoti Roy - Equity Strategist, Angel Broking said that while the company did post growth in revenues, it was well short of the growth posted by larger companies like Infosys and TCS.
This was largely due to the continued degrowth in the aerospace and defence segment which is amongst the worst impacted due to the Covid-19 pandemic and degrew by 10.4% QoQ, he said.