Engineering and technology solutions company Cyient has reported a ₹46.2 crore consolidated net profit for the quarter ended March, which, when compared to the ₹176 crore of the corresponding period of previous fiscal is a 73.75% decline.
The steep fall in the net profit came on the back of Hyderabad-headquartered firm’s total income declining over 9% at ₹1,127.5 crore (₹1,241.8 crore).
For 2019-20, the consolidated net profit at ₹341.2 crore was 28.48% lower compared to the ₹477.1 crore registered in the previous fiscal. Total income declined 3.48% to ₹4,585.7 crore (₹4,751.5 crore).
Managing Director and CEO Krishna Bodanapu said the performance was below expectations both on revenue and margin terms largely due to the impact of COVID-19 which was significant on many parts of the business.
“We are focused on accelerating business growth and have strengthened our leadership team with the appointment of Karthik Natarajan as the President and Chief Operating Officer and Felice Gray-Kemp as Senior Vice President and General Counsel. With both joining us we will strengthen our focus on winning new business, especially in digital focused, IP-driven solutions and services,” he said in a statement.
President and CFO Ajay Aggarwal said the COVID-19 pandemic has slowed down the positive momentum seen building in the overall performance. “We are preparing to secure future in these challenging times with an aggressive cost control and optimisation plan with primary focus on liquidity and cash. This includes rigorous initiatives on collections, working capital cycles, receivables, payables and discretionary cost control. We continue to tap opportunities for automation, pyramid rationalisation, subcontracting cost optimisation and other cost levers,” he said.
The Board of Directors approved an increase in the aggregate investment limits of foreign portfolio investors from existing 49% to 74% of the total paid-up equity share capital of the company. It will be subject to regulatory approvals and approval of shareholders.