Cyient Limited Q3 results: Net profit drops 2% to ₹153 crore, firm narrows guidance for largest unit
₹153 crore. The firm cites the drop in company's consolidated net profit is due to higher employee costs and narrowed the revenue growth outlook for its largest business unit. As per LSEG data, analysts, on average, had expected a profit of ₹185 crore.
Apart from this, the firm's employee costs jumped 9% year-on-year to ₹897 crore during the quarter. Cyient also narrowed full-year outlook for revenue growth in its digital, engineering and technology (DET) unit to 13-13.5 percent from 15-20 percent. Earlier this month, larger peers Infosys Ltd, HCL Technologies and Wipro also tightened forecast and flagged that macro conditions had hardly changed from the previous quarter.
However, their numbers and commentary turned out to better-than-feared, fuelling a rally in IT stocks and pushing the country's benchmark indexes to fresh all-time highs this month. Consolidated revenue from operations for Cyient rose 12.5 percent to ₹1,821 crore for the quarter on the back of growth in the sustainability and transportation verticals. This is slightly ahead of analysts' average estimate of ₹1,711 crore rupees, according to LSEG data.
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