ICICI Direct's research report on Cyient
Cyient reported a healthy set of Q4FY21 numbers. Overall revenues increased 6.0% QoQ to US$149.9 million mainly led by 3.7% QoQ (2.5% QoQ organic growth) growth in services revenues to US$119.6 million and 16.4% QoQ growth in DLM revenues to US$30.3 million. The growth in services revenues was due to 2.9% QoQ growth in transportation, 2.5% QoQ growth in communication and utility segment. Overall EBIT margin increased 148 bps QoQ to 12.6% mainly led by 233 bps QoQ growth in services margins (at 13.6%). The company has declared a dividend of Rs 17 per share.
Outlook
Hence, we maintain BUY with a revised target price of Rs 825 (16x P/E on FY23E EPS) (earlier target price Rs 690/share).
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