CYIENT LIMITED INVESTOR
PRESENTATION
ANNEXURE
Q2 FY24
Message from the Management
KRISHNA BODANAPU
Executive Vice-Chairman &
Managing Director
© CYIENT 2023 | Confidential
Commenting on the results, Mr. Krishna Bodanapu, Executive Vice Chairman and Managing Director, said "Cyient Group witnessed positive Q2 FY24 results, with quarterly Group revenue at
$214.9 Mn, growth of 22.3% YoY in constant currency.
Cyient's Digital, Engineering and Technology (DET) business delivered revenue at $178.4 Mn, growth of 1.0% QoQ and 17.1% YoY in constant currency, driven by growth across the Transportation, Sustainability and Automotive BU's. The normalized DET EBIT margin stood at 16.5%, higher by 406 bps YoY. We won 5 large deals in DET with a total contract potential of $51.4 Mn in this quarter. The DET order intake stood at $183.9 Mn, up by 40.0% YoY. Our pipeline for the year looks robust.
We have also declared an interim dividend of Rs.12, in-line with our capital allocation policy. Our focus remains on strengthening and building technology solutions across key megatrends. We expect DET revenue growth to be in the range of 15 - 20% YoY in constant currency terms and to be at the lower end of this range. Margin trajectory remains robust."
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Message from the Management
PRABHAKAR ATLA
President & CFO
Commenting on the results, Mr. Prabhakar Atla, President and Chief Financial Officer, said, "Q2 FY24 witnessed a well-balanced performance in line with our expectations.
DET revenue grew by 1% sequentially and 17.1% YoY in constant currency terms. DET EBIT margin, at 16.5%, highest in last 11 years, was up by 47 bps QoQ driven by operational improvements. We remain confident of our margin trajectory and have maintained the full year guidance range (+150 to 250 bps YoY). DET FCF for the quarter, at ₹1,538 Mn, grew by 166.1% YoY with a conversion of 89% on normalised PAT.
We witnessed robust performance in key verticals including Aerospace (+3.8% cc QoQ), Sustainability (+4.9% cc QoQ) and Automotive (+7.9% cc QoQ). We will continue to build on this foundation in H2 FY24 while remaining vigilant to deal with macro uncertainty."
© CYIENT 2023 | Confidential
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© 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)
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DET METRICS
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© CYIENT 2023 | Confidential
DET INCOME STATEMENT
Income Statement ₹ Mn | Q2 FY24 | Q1 FY24 | Q2 FY23 |
Operating Revenue ($ Mn) | 178.4 | 177.1 | 151.1 |
Operating Revenue (₹ Mn) | 14,762 | 14,546 | 12,068 |
Cost of Revenue | 8,825 | 8,759 | 7,071 |
Gross profit | 5,937 | 5,787 | 4,996 |
Gross margin % | 40.2% | 39.8% | 41.4% |
Sales and Marketing | 512 | 498 | 435 |
General and Administration | 2,389 | 2,333 | 2,497 |
EBITDA (Normalised) | 3,036 | 2,956 | 2,065 |
EBITDA margin % | 20.6% | 20.3% | 17.1% |
Depreciation and Amortization | 597 | 620 | 560 |
EBIT (Normalised) | 2,440 | 2,335 | 1,504 |
EBIT margin % | 16.5% | 16.1% | 12.5% |
Financial expenses | 223 | 215 | 297 |
Other income | 43 | 93 | 181 |
Profit before tax (PBT) (Normalised) | 2,259 | 2,213 | 1,388 |
Tax | 531 | 511 | 376 |
Profit After Tax (Normalised) | 1,728 | 1,702 | 1,013 |
PAT margin % | 11.7% | 11.7% | 8.4% |
Basic EPS (₹) (Normalised) | 15.8 | 15.5 | 9.3 |
One off/ Exceptional item (Post tax) | 48 | 85 | 312 |
Profit After Tax (Reported) | 1,680 | 1,617 | 701 |
Basic EPS (₹) (Reported) | 15.3 | 14.8 | 6.4 |
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© CYIENT 2023 | Confidential
DET CASH GENERATION FOR THE QUARTER
Cash Flow Summary (₹ Mn) | |||
DET | Q2 FY24 | Q1 FY24 | Q2 FY23 |
Profit before tax (Reported) | 2,197 | 2,102 | 949 |
(+/-)Non-cash & non-operating items | 782 | 890 | 796 |
Operating profit before WC changes | 2,979 | 2,992 | 1,745 |
(+/-) DSO Movement (Receivables) | -796 | 91 | -372 |
(+/-) Other WC changes | -27 | -773 | -184 |
Operating CF after WC changes | 2,156 | 2,310 | 1,189 |
(+/-) Taxes | -481 | -522 | -531 |
(+/-) Capex | -137 | -27 | -80 |
FCF | 1,538 | 1,761 | 578 |
FCF to normalised PAT conversion | 89.0% | 108.9% | 82.5% |
Cash Position (₹ Mn) | |||
DET | Q2 FY24 | Q1 FY24 | Q2 FY23 |
Cash & Cash Equivalent including treasury investments | 8,242 | 9,238 | 12,704 |
Cash & Bank balances | 4,625 | 6,076 | 4,854 |
Investments in FDs | 141 | 141 | 5,014 |
Investment in MFs and Commercial Papers | 1,131 | 1,051 | 271 |
Other treasury investments | 2,345 | 1,970 | 2,565 |
Note: Q1 FY24 cash position includes pending dividend disbursal of ₹1,792 Mn. This was disbursed in July'23
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© CYIENT 2023 | Confidential
DET OTHER INCOME
DET (₹ Mn) | Q2FY24 | Q1FY24 | Q2FY23 |
Income from Investments | 81 | 75 | 97 |
Realised gains/(losses) on Fwd Contracts | -28 | -38 | 47 |
Unrealised Fx gains/(losses) | -80 | 119 | -28 |
Others | 70 | -63 | 66 |
Other Income | 43 | 93 | 182 |
Currency | Q2 FY24 | Q1 FY24 | Q2 FY23 | |||
Movement | Forward | Spot | Forward | Spot | Forward | Spot |
USD | 82.5 | 82.9 | 80.4 | 82.2 | 77.3 | 79.8 |
EUR | 85.1 | 89.5 | 87.4 | 89.8 | 91.1 | 80.6 |
GBP | 96.0 | 104.0 | 100.9 | 103.2 | 106.0 | 94.6 |
AUD | 56.9 | 54.0 | 56.8 | 54.6 | 56.2 | 55.0 |
CAD | 63.3 | 61.5 | 62.5 | 61.0 | 60.6 | 61.6 |
Forward and spot rates represent average of monthly rates
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DET HEDGE BOOK
Outstanding ForwardContracts | Value in Respective | ||||||||||||
Currency Mn. | |||||||||||||
30-Sep-23 | 30-Jun-23 | 30-Sep-22 | 150 | ||||||||||
116 | |||||||||||||
82 | 95 | ||||||||||||
5459 | |||||||||||||
202429 | 4 | 6 | 7 | 9 | 1418 | 142127 | |||||||
USD | EUR | GBP | CAD | AUD Total (USD) |
Booked Rate (in ₹) for next 12 Months
0.9 | 2.3 | (0.5) | ||||
101.1 | 101.6 | |||||
84.2 | 83.2 | 90.2 | 87.9 | 1.2 | ||
3.7 | ||||||
62.9 61.7 | 57.2 53.5 |
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 Sep '23 is $95 Mn
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© CYIENT 2023 | Confidential
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DET OTHER METRICS (1/2)
Revenue by Geography (%) | |||
DET | Q2 FY24 | Q1 FY24 | Q2 FY23 |
Americas | 43.0% | 43.2% | 50.7% |
Europe, Middle East, Africa | 33.4% | 34.4% | 28.0% |
Asia Pacific (including India) | 23.6% | 22.4% | 21.3% |
Onsite/offshore Revenue Split (%) | |||
DET | Q2 FY24 | Q1 FY24 | Q2 FY23 |
Onsite | 55.8% | 55.6% | 52.0% |
Offshore | 44.2% | 44.4% | 48.0% |
Revenue by Currency (%) | |||
DET | Q2 FY24 | Q1 FY24 | Q2 FY23 |
USD | 43.5% | 43.7% | 49.1% |
EURO | 19.0% | 18.2% | 14.1% |
GBP | 7.5% | 7.8% | 8.7% |
AUD | 13.3% | 12.3% | 11.2% |
Others | 16.8% | 18.0% | 17.0% |
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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.
