Cyient Q2 net profit down 15% to Rs 84 crore

IT firm Cyient on October 15 reported a 14.8 percent decline in its consolidated net profit at Rs 83.9 crore for September 2020 quarter.

The Hyderabad-based company had posted a net profit of Rs 98.5 crore in the year-ago period, it said in a regulatory filing. Its revenue decreased 13.4 percent to Rs 1,003.3 crore for the period under review as against Rs 1,158.9 crore in same period year ago.

On a sequential basis, the net profit was higher by 3 percent from Rs 81.4 crore, while revenue increased 1.2 percent from Rs 991.7 crore in the June 2020 quarter. "PAT increased by 3 percent quarter-on-quarter mainly from higher operating income driven by higher volume and efficiency," the company said.

Krishna Bodanapu, Managing Director and Chief Executive Officer of Cyient said the second quarter results are in line with its expectations. "This quarter we focused on setting up the business back on a growth path. We continued our rigour on efficiency improvement and building pipeline for the business," he added.

The company has won key projects that sets it up for a better second half, he said. "Our outlook for H2 is positive and we expect growth based on the outlook and pipeline across most sectors… For the year, we expect a double digit decline in revenue and margins will be similar to FY20 margins," he added.