IT firm Cyient posted a consolidated net profit of ₹89.9 crore for the quarter ended June 30, a 10.17% growth over ₹81.6 crore recorded a year earlier.
Revenue from operations of the Hyderabad-headquartered firm was almost flat at ₹1,089 crore (₹1,080 crore).
Managing director and CEO Krishna Bodanapu said the results were “disappointing. We recorded a revenue of $156.6 million, lower by 4.8% quarter-on-quarter (Q-o-Q) and 0.6% year-on-year. Our services business was lower by 5.7% Q-o-Q predominantly driven by communications, aerospace, energy and utilities and portfolio business units.”
“Our EBIT% at group level witnessed a de-growth of 356 bps (basis points) Q-o-Q due to lower business volume, incremental spend on investments and wage hike impact. The outlook for the year remains positive and we are confident on double digit EBIT growth backed by revenue growth and cost optimisation initiatives,” he said in a statement.
On Thursday, the company’s shares closed with a gain of 1.26% at ₹544.15 apiece on the BSE.