Cyient shares gain ahead of Q3 results. Analyst estimates, earnings call timing & more

Shares of Cyient gained nearly 1 per cent in Thursday’s trade, ahead of December quarter results. The scrip rose 1.19 per cent to hit a high of Rs 858 on BSE. Analysts largely expect the midcap IT firm to report a 12 per cent year-on-year (YoY) jump in net profit and a revenue growth in excess of 35 per cent.

Conference call timing

Following the release, Cyient’s senior management team comprised of Krishna Bodanapu – Managing Director & Chief Executive Officer, Ajay Aggarwal – Executive Director & Chief Financial Officer; and Karthik Natarajan – Executive Director & COO will conduct an earnings conference call.

The earnings call will start at 5:00 PM IST for 60 minutes, the company said in a press statement.

What to expect?

IDBI Capital sees profit for Cyient rising 12.4 per cent YoY to Rs 148 crore compared with Rs 131.70 crore in the year-ago quarter. It sees revenues soaring 36.40 per cent YoY to Rs 1,613.70 crore from Rs 1,183.40 crore YoY.

“We expect CC revenue growth of 13 per cent QoQ (12.2 per cent QoQ in USD); Services is expected to grow by 12.1 per cent QoQ in CC (3 per cent QoQ in CC organic) while DLM is expected to grow strongly at 18 per cent after three quarters  of weakness,” PhillipCapital said.

Motilal Oswal sees profit rising 12.5 per cent YoY to Rs 148.10 crore.

In the case of Cyient, Motilal Oswal is expecting the It firm to report a 11.7 per cent sequential growth in CC revenues. Organic growth should remain strong at 3.1 per cent, the brokerage said while expecting a 60 bps improvement in sequential margin. It expects a strong rebound in DLM business while  Aerospace vertical should see strong revival, Motilal said adding that the commentary on margins will be the key monitorable.      

Subsidiary IPO

Recently, Cyient was in news after a subsidiary Cyient DLM filed its draft red herring prospectus with Sebi. The IPO will in the form of fresh issue aggragating, up to to Rs 740 crore. Cyient DLM in consultation with the book running lead managers, may consider a further issue of equity shares for an amount aggregating up to Rs  148 crore, prior to the filing of the red herring prospectus with the registrar of companies.

Source