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Cyient Ltd
Cyient Ltd., a robust player in the global technology and digital services sector, began its journey in the early 1990s under the visionary leadership of its founder, B.V.R. Mohan Reddy. What started as Infotech Enterprises evolved into a powerhouse that helps companies redefine industries thanks to its engineering, design-led manufacturing, and digital technology integrations. Known for its expertise in sectors like aerospace, rail transportation, medical devices, and utilities, Cyient thrives by solving complex challenges with innovative technological solutions. The company's portfolio boasts a range of services, including data analytics, software development, and consulting, which enable it to tailor solutions that enhance operational efficiency and modernize its clients' core processes.
The company's path to profitability and growth is crafted by its strategic focus on providing bespoke solutions to its clients' most pressing needs. Through partnerships and collaborations with various industries worldwide, Cyient succeeds by embedding itself in its customers’ value chains, ensuring that its solutions not only meet but often anticipate future demands. Revenue is generated by offering these specialized services and sometimes through long-term contracts and licensing agreements that connect Cyient’s state-of-the-art technology with the operational frameworks of its clients. This dynamic approach not only strengthens customer relationships but also fuels Cyient's continuous expansion into new markets and technologies, carving a niche as a transformative partner in an ever-evolving digital landscape.
Cyient Ltd., a robust player in the global technology and digital services sector, began its journey in the early 1990s under the visionary leadership of its founder, B.V.R. Mohan Reddy. What started as Infotech Enterprises evolved into a powerhouse that helps companies redefine industries thanks to its engineering, design-led manufacturing, and digital technology integrations. Known for its expertise in sectors like aerospace, rail transportation, medical devices, and utilities, Cyient thrives by solving complex challenges with innovative technological solutions. The company's portfolio boasts a range of services, including data analytics, software development, and consulting, which enable it to tailor solutions that enhance operational efficiency and modernize its clients' core processes.
The company's path to profitability and growth is crafted by its strategic focus on providing bespoke solutions to its clients' most pressing needs. Through partnerships and collaborations with various industries worldwide, Cyient succeeds by embedding itself in its customers’ value chains, ensuring that its solutions not only meet but often anticipate future demands. Revenue is generated by offering these specialized services and sometimes through long-term contracts and licensing agreements that connect Cyient’s state-of-the-art technology with the operational frameworks of its clients. This dynamic approach not only strengthens customer relationships but also fuels Cyient's continuous expansion into new markets and technologies, carving a niche as a transformative partner in an ever-evolving digital landscape.
Revenue Rebound: Cyient reported a strong Q2 with group revenue growth, led by a 12% quarter-on-quarter rebound in the semiconductor business and 3.3% quarter-on-quarter growth in DET (Design, Engineering and Technology) in rupee terms.
Margin Improvement: DET EBIT margin expanded by 16 bps quarter-on-quarter to 12.2%, despite wage hikes and restructuring costs.
Order Intake Quality: The share of new business in order intake rose to 27% from 21% last quarter, and the technology-related pipeline doubled over one quarter.
Dividend Increase: The Board declared an interim dividend of INR 16, the highest ever, reflecting confidence in future growth and cash flows.
Growth Guidance: Management expects H2 revenue and margins to be stronger than H1, supported by a healthy pipeline and cost optimization programs.
Semiconductor Strategy: Cyient Semiconductor is targeting a $50 million revenue run-rate and EBIT neutrality by FY '27, with a $100 million ASIC pipeline.
Cost Actions: Q2 included a one-off restructuring cost of about 200 bps, mainly from employee severance, mostly completed this quarter.