Karthikeyan Natarajan, President & COO of Cyient, on Thursday said that the revenue decline for FY21 for the company could be close to 10 percent.
“We continue to hold the view that we would be closer to the 10 percent de-growth as compared to what we guided in the past,” he said in an interview with CNBC-TV18.
He said that the company has been making steady progress in its financials after the dip in Q1.
“We have been making steady progress after we saw a dip in Q1. We have definitely seen a margin increase in Q2 and we continue to make progress even in Q3 both in terms of revenue growth as well as margin expansion,” he said.
Natarajan said that they had brought in operational efficiencies via offshoring, higher utilisation and employee pyramid. He expects 2021 to be better than 2020.
“We have been able to bring in a lot of operational efficiency in the form of offshoring, utilisation, trying to improve our pyramid structure, and also able to help through automation which has been one of the initiatives we started off 6 months ago. We are trying to work with many of our customers to make sure that we are able to provide the right value at the right price. We are making steady progress on the digital transformation; we expect a lot more to happen on the digital area as we move into 2021. We are hopeful that 2021 will be lot better than 2020,” he said.
According to Natarajan, softness in the aerospace and defence business contributed to the revenue decline over the last few quarters. He further added that the medical and healthcare vertical grew 40 percent year-on-year (YoY) and that the company had added two large healthcare R&D spenders as clients in the last 6 months.
As he said, the order intake in Q3 was a sign of pent-up demand. Cyient closed five large deals worth $106 million in Q3, he added.Watch video for more.