Cyient is the top loser on the BSE currently, going down 10% to Rs.585.60, not too far from its 52-week low of Rs.571, just 5% away. It has a 20% LC at Rs.519.70.
The market is upset with its latest business update where the Q4FY19 picture does not look good.
The company stated that it expects a material decline in its Design Led Manufacturing revenue during the Q4 FY19. A large order delivery of $5Mn has been delayed due to delay in regulatory clearances at customer end with one of our customers.
In Services, the company has deferment of orders by some of its key customers in the A&D and Communications business units.
Cyient expects marginal sequential growth of 1% to 2% in Services and its expects the operating margin outlook for FY19 to remain the same as mentioned in the earnings call after Q3 FY19 results.
During Q3FY19 results, the company had guided for 8.5% to 9.5% growth in the Services business in cc terms and expected the Legacy Design-led Manufacturing business to grow by 20% and overall Design-led Manufacturing, including B&F, to grow by 35%.