Cyient Limited has informed the Exchange about Transcript
CYIENT · price
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Cyient reported a softer-than-expected Q4 FY25, with the DET (engineering services) segment revenue declining 1.9% QoQ in constant currency to $170M and EBIT margin slipping to 13% (down 48 bps QoQ). Management attributed the miss to a weak March impacted by global macro uncertainties and tariff-related disruptions. New CEO Sukamal Banerjee announced that the company is suspending forward guidance for FY26 to allow him time to stabilize execution and forecasting. The CFO revised the margin trajectory downward, now targeting 15% over 24 months versus the prior 16% in 12 months. On the positive side, FY25 group revenue hit a record INR7,360 crores (+3% YoY), free cash flow for DET reached a best-ever INR800 crores, and Cyient cleared all long-term debt in DET. The DLM business grew 27% YoY, the semiconductor arm was spun off as CSPL, and a significant green hydrogen order win was highlighted. Top 5 and top 10 clients grew 4.5% and 9% YoY respectively. A final dividend of INR14/share was declared (FY25 total: INR26/share).
Near-term sentiment is likely negative given the missed Q4, pulled guidance, and downward margin revision, especially with a soft Q1 FY26 expected. However, the debt-free balance sheet, strong cash position ($157M for DET), robust FCF, and new CEO's focus on execution provide a stable foundation for medium-term recovery. Shareholders should expect short-term volatility but management's tone signals confidence in returning to growth mode in coming quarters.