(Corrects headline, paragraph 1 to say net profit was down 28.8%, not 40%, paragraph 3 to say revenue was down 3.7% to 17.81 bln rupees, not down 1% to 18.31 bln rupees)
(Reuters) -India’ Cyient on Thursday reported a 28.8% fall in profit, as a higher wage bill in a seasonally tough quarter weighed on the engineering research and development firm.
Consolidated net profit came in at 1.28 billion rupees ($14 million), down from 1.79 billion rupees last year.
Revenue was down 3.7% to 17.81 billion rupees, from 18.49 billion rupees a year ago.
Cyient had changed the way it reports its segment-wise revenue from the last quarter onwards, after it carved out its semiconductor business into a separate subsidiary unit.
KEY CONTEXT
While U.S. policy shifts – including President Donald Trump’s proposed H-1B visa changes – have rattled India’s IT services sector, Cyient has stayed relatively insulated, thanks to its limited overseas workforce and focus on project delivery from India.
The company, which counts Honeywell and Bharat Electronics among its clients, had deployed just six workers on H-1B visas in FY25, and does not anticipate material impact on its financials for FY26, the company said in September.
Still, supply chain bottlenecks have weighed on its engineering R&D operations, particularly in its transport, mobility, and semiconductor businesses.
President and chief financial officer Prabhakar Atla highlighted headwinds from wage hikes as well as ongoing macroeconomic uncertainties, as some reasons for the company’s performance this quarter.
Peer Tata Elxsi reported a drop in profit for the fourth straight quarter last week, as its key transportation business declined.
ANALYST VIEWS
Valuat Est Ana
ion ima lys
(next tes ts’
12 (ne sen
months xt tim
) 12 ent
mon
ths
)
RIC PE EV Rev Pro Mea # Stoc Div
/E enu fit n of k to yiel
BI e gro rat ana pric d
TD gro wth ing lys e (%)
A wth (%) * ts targ
(%) et**
Cyient CYI 17 9. 5.8 13. HOL 18 0.85 2.31
Ltd E.N .2 75 4 08 D
S 4
Tata TTE 45 33 6.3 3.7 SEL 15 1.18 1.40
Elxsi X.N .0 .6 2 0 L
Ltd S 8 3
KPIT KPI 35 20 10. 11. BUY 20 0.87 0.73
Technol E.N .1 .4 62 18
ogies S 1 2
Ltd
L&T LTE 28 18 12. 13. HOL 28 0.92 1.33
Technol H.N .8 .4 43 96 D
ogy S 7 1
Service
s Ltd
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JULY-SEPTEMBER STOCK PERFORMANCE
*
(Reporting by Abhirami G in Bengaluru)
