Cyient DLM share price rises more than 8% in intraday trade as Q2 net profit surges 106%

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Cyient DLM share price rose more than 8% in intraday trade on Tuesday post the company results for July-September period impressed the investors with strong earnings growth. The results were declared post market hours on Monday. Notably the firm reported its first quarterly results since its listing in July.

Cyient DLM's reported net profit at ₹14.7 crore more than doubled from ₹7.1 crore in the year ago quarter. The same were also a significant improvement over ₹5.3 crore over the previous quarter. Cyient DLM results were, however, also boosted by a significant rise in other income.

The other income, at ₹9.282 crore, was up significantly compared to 0.9 Crore in the previous quarter and negative ₹0.68 crore in the year ago quarter. Also Read- Top 5 defence stocks to watch out in Nifty's run-up to 40,000 - Cyient DLM’s earnings before interest tax depreciation and amortisation (Ebitda) at ₹23.5 crore however could grow only 0.5% year-on-year. The Ebitda margins at 8.1% declined 571 basis points on year-on-year basis.

Cyient DLM attributed year-on-year drop in margins to one-off PPV (purchase Price Variance) gains in FY23 and adverse revenue mix in Q2. Cyient DLM’s revenues at ₹291.8 crore grew 71.5% year-on-year. Its order backlog at ₹2286.6 crore This was a reduction of ₹260.1 crore over the last year.

Cyient DLM said that Order Backlog is lower due to impact of seasonal orders expected in H2 (primarily in Aero & Defense). Emerging markets such as space, supersonics/hypersonic, and Advanced Air Mobility are poised to change the industry landscape. The Aerospace & Defense sector is also likely to be pushed by Airlines opting for new-generation aircraft to replace older aircraft in their fleets for lowering carbon