Cyient shares gains 3% after net profit rises QoQ to Rs 83.9 crore

Cyient share price gained over 3 percent in the morning session on October 16 after the company declared its September quarter results.

IT firm Cyient on October 15 reported a 14.8 percent decline in its consolidated net profit to 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 the year-ago.

Company's consolidated net profit was up 3.1 percent QoQ to Rs 83.9 crore versus Rs 81.4 crore and revenue was up 1.2 percent to Rs 1,003.3 crore versus Rs 991.7 crore.

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.

The stock was trading at Rs 376.60, up Rs 10.30, or 2.81 percent at 09:26 hours. It has touched an intraday high of Rs 383.40 and an intraday low of Rs 370. The stock witnessed spurt in volume by more than 4.33 times and was trading with volumes of 148,616 shares, compared to its five day average of 35,789 shares, an increase of 315.26 percent.

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.