© CYIENT 2023 | Confidential

INVESTOR

PRESENTATION

Annexure

Q1 FY24

Message from the Management

KRISHNA

BODANAPU

Executive Vice

Chairman &

Managing Director

Commenting on the results, Mr. Krishna Bodanapu, Executive Vice Chairman and Managing Director, said "Cyient witnessed positive Q1 FY24 results, with quarterly group revenue at $205.3 Mn, growth of 28.6% YoY in constant currency. Cyient Digital, Engineering & Technology (DET) business includes the erstwhile Services business (core services and acquisitions) and a small portion of Engineering Parts business which was earlier classified under DLM. DET revenue at $177.1 Mn, growth of 0.3% QoQ and 30.6% YoY in constant currency, driven by growth across the Transportation, Sustainability and Automotive BU's. The normalized Group EBIT margins, at 14.7%, is higher by 322 bps YoY.

We won 6 large deals in DET with a total contract potential of $48.8 Mn in this quarter. The order intake stood at $193.2 Mn, up 32.5% YoY. Our pipeline for the year looks robust. We continue to strengthen our technology offerings and remain focused on building solutions across key megatrends. Our full year outlook ahead continues to be strong, we expect 15-20% growth for DET driven by strong order intake, large deals pipeline, and growth in key accounts."

© CYIENT 2023 | Confidential

2

Message from the Management

PRABHAKAR

ATLA

President & CFO

Commenting on the results, Mr. Prabhakar Atla, President and Chief Financial Officer, said, "Q1 FY24 witnessed a well-balanced performance in line with our expectations.

DET revenue grew by 0.3% sequentially in cc terms and 30.6% YoY. DET EBIT margins, at 16.1%, were highest in last 9 years, up by 93 bps QoQ driven by improvements in SG&A costs resulting from optimization initiatives. We remain confident of our margin trajectory and have upgraded the full year guidance range (+150 to 250 bps YoY). DET FCF for the quarter, at ₹1,761 Mn, grew by 150.5% YoY with a strong conversion of 108.9% on reported PAT.

We witnessed robust performance in key verticals including Aerospace (+2.3% cc QoQ), Sustainability (+4.5% cc QoQ) and Automotive (+3.1% cc QoQ). We will continue to build on this foundation in Q2 FY24 while remaining vigilant to deal with macro uncertainty."

© CYIENT 2023 | Confidential

3

© CYIENT 2023 | Confidential

Glossary

  • Cyient Group Business Segments:
    • Cyient DET: Digital, Engineering & Technology
    • Cyient DLM
    • Cyient Others^
  • Cyient DET: Consolidated Services + Engineering Parts business*
    • Transportation: Aerospace + Rail Transportation
    • Connectivity: Communications
    • Sustainability: Mining, Energy & Utilities
    • New Growth Areas: Medical, Semiconductor, Hi-Tech and Automotive

*Engineering Parts business was included in Cyient DLM segment earlier

^Cyient Others: Aerospace Tooling business (Included in DLM segment earlier)

Note: Prior period numbers do not include Engineering Parts business

4

© CYIENT 2023 | Confidential

DET Metrics

5

© CYIENT 2023 | Confidential

DET Income Statement

Income Statement ₹ Mn

Q1 FY24

Q4 FY23

Q1 FY23

Operating Revenue ($ Mn)

177.1

176.2

137.1

Operating Revenue (₹ Mn)

14,546

14,489

10,604

Cost of Revenue

8,759

8,381

6,204

Gross profit

5,787

6,108

4,400

Gross margin %

39.8%

42.2%

41.5%

Sales and Marketing

498

506

418

General and Administration

2,333

2,746

2,184

EBITDA (Normalised)

2,956

2,857

1,798

EBITDA margin %

20.3%

19.7%

17.0%

Depreciation and Amortization

620

666

442

EBIT (Normalised)

2,335

2,191

1,356

EBIT margin %

16.1%

15.1%

12.8%

Financial expenses

215

188

130

Other income

93

22

273

Profit before tax (PBT) (Normalised)

2,213

2,024

1,499

Tax

511

419

410

Profit After Tax (Normalised)

1,702

1,606

1,089

Basic EPS (₹) (Normalised)

15.5

14.7

10.0

One off/ Exceptional item (Post tax)

85

127

0

Profit After Tax (Reported)

1,617

1,478

1,089

Basic EPS (₹) (Reported)

14.8

13.5

10.0

6

© CYIENT 2023 | Confidential

DET Cash Generation for the Quarter

Cash Flow Summary (₹ Mn)

DET

Q1 FY24

Q4 FY23

Q1 FY23

Profit before tax

2,102

1,797

1,496

(+/-)Non-cash & non-operating items

890

795

553

Operating profit before WC changes

2,992

2,592

2,049

(+/-) DSO Movement (Receivables)

91

-781

-1,323

(+/-) Other WC changes

-773

407

-80

Operating CF after WC changes

2,310

2,218

646

(+/-) Taxes

-522

-233

190

(+/-) Capex

-27

-138

-133

FCF

1,761

1,847

703

FCF to EBITDA Conversion^

60.9%

70.1%

35.3%

FCF to PAT Conversion

108.9%

124.9%

64.6%

^EBITDA used for FCF conversion includes other income part of cash flow from operations

Cash Position (₹ Mn)

DET

Q1 FY24

Q4 FY23

Q1 FY23

Cash & Cash Equivalent including treasury investments

9,238

9,133

12,737

Cash & Bank balances

6,076

5,208

3,202

Investments in FDs

141

347

6,574

Investment in MFs and Commercial Papers

1,051

1,290

861

Other treasury investments

1,970

2,288

2,100

Note: Above cash position includes pending dividend disbursal of ₹1,792 Mn. This was disbursed in July'23

7

© CYIENT 2023 | Confidential

DET Other Income

DET (₹ Mn)

Q1FY24

Q4FY23

Q1FY23

Income from Investments

75

53

95

Realised gains/(losses) on Fwd Contracts

-38

-47

144

Unrealised Fx gains/(losses)

119

-89

-25

Others

-63

105

59

Other Income

93

22

273

Currency

Q1 FY24

Q4 FY23

Q1 FY23

Movement

Forward

Spot

Forward

Spot

Forward

Spot

USD

80.4

82.2

78.6

82.2

77.1

77.6

EUR

87.4

89.8

89.9

88.9

94.0

82.4

GBP

100.9

103.2

105.9

100.5

108.9

96.9

AUD

56.8

54.6

56.7

56.3

59.4

54.8

CAD

62.5

61.0

61.8

60.7

63.2

60.6

Forward and spot rates represent average of monthly rates

8

DET Hedge Book

Outstanding ForwardContracts

Value in Respective

Currency Mn.

30-Jun-23

31-Mar-23

30-Jun-22

154 152

116

81 79

59

24 29 30

6

7

7

14

20

18

21 27 28

USD

EUR

GBP

CAD

AUD Total (USD)

Booked Rate (in ₹) for next 12 Months

(4.0)

1.6

(1.0)

103.5

99.6

1.1

83.7

82.1

88.1 89.2

2.9

63.1 61.9

57.1 54.2

INR/USD

INR/EUR

INR/GBP

INR/CAD

INR/AUD

FW Cover Rate

Spot Rate

© CYIENT 2023 | Confidential

  • Considering the current economic conditions & volatility in the currencies, we have aligned to hedge only USD / INR pair upto 40% of H1 FY25 net inflows. We will continue to monitor the fx movements every month end & update our hedge position accordingly for all the currency pairs (USD, GBP, EUR, AUD, CAD). On the current forward contracts, the company has following position for the next 12 months at current spot rates:
    • Outstanding Forward Contract as on 30th June '23 is $116 Mn ($116 Mn in constant currency considering 31st Mar 2023 rates)

9

© CYIENT 2023 | Confidential

DET Other Metrics (1/2)

Revenue by Geography (%)

DET

Q1 FY24

Q4 FY23

Q1 FY23

Americas

43.2%

46.0%

53.0%

Europe, Middle East, Africa

34.4%

34.4%

21.8%

Asia Pacific (including India)

22.4%

19.6%

25.2%

Onsite/offshore Revenue Split (%)

DET

Q1 FY24

Q4 FY23

Q1 FY23

Onsite

55.6%

55.6%

50.0%

Offshore

44.4%

44.4%

50.0%

Note: Q4 FY23 offshore revenue % was incorrect. It has been rectified now

Revenue by Currency (%)

DET

Q1 FY24

Q4 FY23

Q1 FY23

USD

43.7%

44.9%

53.6%

EURO

18.2%

19.5%

9.9%

GBP

7.8%

8.3%

7.7%

AUD

12.3%

10.0%

12.4%

Others

18.0%

17.4%

16.4%

Note: Revenue currency mix for previous period have been restated including acquisitions

10

Attachments

Disclaimer

Cyient Limited published this content on 19 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 December 2023 14:09:14 UTC.