Cyient is on a strong footing today, opening 2.5% higher at Rs.705 and going to hit a new high at Rs.720 with an over 2x surge in volumes.
The company announced a good set of earnings for Q4FY21. Though YoY, the numbers look great with a 128% jump in net profit at Rs.103 crore, sequentially, it is more staid growth by 8%. Revenue from operations, YoY was very flat, up 2% at Rs.1093 crore but QoQ, it was up 5%.
Though the reduction in employee cost did help, the impairment cost of non-current assets at Rs.31 crore and higher tax out go offset that advantage.
Its Free Cash Flow generation for the quarter was at Rs.190 crore, a conversion of 101% on EBITDA (conversion of 171.4% on PAT).
Its normalized EBIT margin excluding exceptional items was at 12.6% up by 148 bps QoQ, which was the highest in the last eight quarters and its EBIT margin for services at 13.6%, was up 233 bps QoQ, while EBIT margin for DLM at 8.8%, down 181bps.