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Cyient shares rally over 9% on better than expected Q1 earnings

Cyient shares rally over 9% on better than expected Q1 earnings

Cyient shares rally over 9% on better than expected Q1 earnings
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By Ankit Gohel  Jul 17, 2020 11:59:43 AM IST (Updated)

Shares of IT firm Cyient Ltd rallied over 9 percent in the early trade on Friday after the company reported better than estimated earnings for the April-June quarter of fiscal 2021 with a robust rise in net profit and improvement in operating performance.

Shares of IT firm Cyient Ltd rallied over 9 percent in early trade on Friday after the company reported better than estimated earnings for the April-June quarter of fiscal 2021 with a robust rise in net profit and improvement in operating performance. The stock surged 9.27 percent to an intraday high of Rs 310.50 on the BSE. At 10:15 am, the shares traded 5.86 percent higher at Rs 300.80 apiece.

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The company's bottomline in Q1FY21 rose 76.2 percent to Rs 81.4 crore from Rs 46.2 crore in the previous quarter. CNBC-TV18 analysts' poll had estimated profit of Rs 41 crore.
Topline during the quarter declined by 7.6 percent to Rs 991.7 crore from Rs 1,073.6 crore, QoQ.
Operational performance improved on a sequential basis as EBIT rose 10.6 percent to 50.2 crore from 45.4 crore and EBIT margin expanded by 90 bps to 5.1 percent.
"Q1 FY21 results were better than our expectations, where we recorded a revenue of USD 130.6 million which was lower by 11.6 percent quarter-on-quarter and 15.1 percent year-on-year in constant currency," Cyient Managing Director and CEO Krishna Bodanapu said.
He added that the company saw some significant wins in both new business and existing clients in June 2020 quarter that will help strengthen Cyient's revenue outlook in the coming quarters.
"Our outlook for Q2 is positive and we expect growth to return in all industries except aerospace, which will de-grow further in Q2. For the year, we expect a de-growth in revenue in double digits," he said.
Bodanapu said margins in the second half of the fiscal will be "back to the steady state margin of H1 of last year"
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