BENGALURU (Reuters) – India’s Cyient reported bigger-than-expected fourth-quarter revenue on Thursday, as engineering and technology, its largest segment, benefited from continued client spending.
WHY IT’S IMPORTANT
India’s $254 billion IT sector has been struggling in recent quarters as clients cut spending on non-essential projects.
However, engineering and tech services companies such as Cyient have been able to tide over as they focus on providing services to the transportation, mining and energy sectors, whereas larger IT services firms, including Tata Consultancy Services and Infosys, mainly cater to sectors such as banking, financial services, and insurance (BFSI).
Analysts expect Cyient’s deal wins in the fourth quarter from Airbus and Deutsche Aircraft to help its maintain engineering and technology growth in the aerospace segment in fiscal 2025.
BY THE NUMBERS
Consolidated revenue rose 6.3% to 18.61 billion rupees ($223.4 million) in the January-March period, beating analysts’ estimate of 17.27 billion rupees, as per LSEG data.
The company’s digital, engineering and technology segment accounted for 80% of its overall revenue.
Net profit climbed 15.9% to 1.89 billion rupees for the period.
GRAPHIC
KEY QUOTES
“For FY25, our order book looks strong and we will continue to focus and invest on strengthening our intelligent engineering and technology solutions across key industries and megatrends,” Managing Director Krishna Bodanapu said.
“We are also confident that our presence in key industry verticals through our balanced portfolio will help us deliver balanced outcomes in the evolving market and geo-political uncertainties.”
($1 = 83.3049 rupees)
(Reporting by Rama Venkat in Bengaluru; Editing by Sonia Cheema)
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