Cyient Q2 Results Review - Decent Quarter, But Uncertainties Remain: Motilal Oswal

Motilal Oswal Report

Digital, engineering and technology business reported Q2 FY25 revenues of $173 million, up 1.3% QoQ in constant currency versus our estimate of 1.0% growth. Cyient Ltd. reported broad-based growth in revenues across verticals, except sustainability (down 6.45 QoQ cc).

Ebit margin of the DET business was up 75 bp QoQ/down 232 bp YoY at 14.2%, above our estimates of 12.7%. Service order intake was muted at $156.8 million, down 14.7% YoY. DET PAT grew 24.9% QoQ/2.2% YoY to Rs 1,768 million (estimate: Rs 1,427 million). For H1 FY25, DET revenue/Ebit/PAT declined 2.3%/17.0%/7.3% versus H1 FY24.

In H2 FY25, we expect DET revenue/PAT to grow by 2.8%/4.9% and Ebit to decline 2.3% YoY. Our SOTP-based target price of Rs 2,100 implies an upside of 18%.

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