India's Cyient reports strong Q3 revenue as acquisitions pay off
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BENGALURU - Indian engineering and tech firm Cyient Ltd on Thursday reported a better-than-expected 37% jump in quarterly revenue on the back of a slew of acquisitions that helped counter a weak demand in an uncertain economic environment.
The Hyderabad-based company benefited from the four acquisitions it did last year, including its largest ever of Finnish engineering services firm Citec which helped expand its footprint in Europe.
Cyient's consolidated revenue from operations for the quarter ended Dec. 31 stood at 16.18 billion rupees ($198.08 million), compared with 11.83 billion rupees a year ago, it said in an exchange filing.
Analysts on an average expected a revenue of 16.09 billion rupees, according to Refinitiv data.
In October, the company had said it expected acquisitions to add about $150 mln annually to its revenue. The acquisitions contributed to 15.6% of the total revenue for the quarter and the company's services order intake grew 83% quarter-on-quarter.
Consolidated net profit rose 18.4% to 1.56 billion rupees, while normalised group earnings before interest and taxes stood at 2.09 billion rupees with a margin of 12.9%.
The company's design-manufacturing business Cyient DLM reported a 10.3% increase in revenue.
Earlier this week, Cyient DLM filed an initial public offering comprising a fresh issue of shares worth up to 7.4 billion rupees.
Cyient's strong performance comes even as the industry braces for a demand slowdown amid fears of a recession in major western markets.
Earlier in the day, Infosys, India's second-largest software exporter, beat profit estimates on strong deal pipeline. On Monday, sector leader Tata Consultancy Services missed estimates.
($1 = 81.6850 Indian rupees)
