Engineering design services firm Cyient fell in morning trade today after the company said it expects material decline for its design led manufacturing revenue during Q4 FY19.
Cyient share price fell up to 11.95% to 572 level compared to the previous close of 649.60 on BSE. Cyient share price is just 1.52% away from 52 week low of 571.10 on BSE.
The stock has lost 6.36% since the beginning of this year and fallen 15.53%. 19 of 21 brokerages rate Cyient stock "buy" or 'outperform', two "hold", according to analysts' recommendations tracked by Reuters.
Cyient share price was trading below its 50-day and 200 day moving average of 641 and 640 levels, respectively.
Cyient said, "We expect material decline in our design led manufacturing revenue during the Q4 FY19. A large order delivery of - $5 million has been delayed due to delay in regulatory clearances at customer end with one of our customers. In services, we have deferment of orders by some of our key customers in the A&D and Communications business units and we now expect a marginal sequential growth of 1% to 2% in services."
"We expect our operating margin outlook for FY19 to remain the same as mentioned in the earnings call after Q3 FY19 results. We also remain confident of a robust growth in FY20 on revenue and profits." Cyient, formerly Infotech Enterprises, is engaged in providing software-enabled engineering and geographic information system (GIS) services.
The company's segments include data and network operations (DNO); engineering, manufacturing, industrial products (emi), and product realisation (PR). DNO vertical services industries, such as power, gas, telecom, transportation and local government, and offers data conversion, data maintenance, photogrammetry and information technology (IT) services to the DNO vertical.
EMI vertical services customers in industries, such as aerospace, automotive, off-highway transportation and industrial and commercial products, engineering design, embedded software, IT Solutions, manufacturing support, technical publications and other strategic customers. PR vertical services is engaged in providing electronic manufacturing solutions in the fields of medical, industrial, automotive, telecommunications, defense and aerospace applications.
Edited by Aseem Thapliyal