Cyient profit falls 4.8% year on year despite revenue growth and stronger engineering margin
Key Facts
Cyient Group's profit after tax fell 4.8% year on year to about 121 crore rupees in the second quarter of fiscal 2027, according to the company's investor presentation, despite a rise in revenue from the previous quarter. Group revenue totaled 2,235 crore rupees during the period, NDTV Profit reported, citing the financial results. That represented quarterly growth of 7.7%, compared with revenue of 2,076 crore rupees in the first quarter of the same fiscal year. Net profit rose 16.6% quarter on quarter, according to the same source. The increase was from net profit of about 104 crore rupees in the previous quarter. Revenue and profit thus improved from the first quarter, while group profit remained below its level in the corresponding period of the previous fiscal year.
In the Digital, Engineering and Technology segment, the earnings before interest and tax margin reached 14.2% in the second quarter, according to Cyient's investor presentation. Management said during the earnings call that the segment achieved its "highest EBIT margin in 10 quarters," according to the call transcript published by Investing.com. The segment's organic revenue grew 1.6% in constant currency from the previous quarter. Compared with the corresponding period of the previous fiscal year, however, organic constant-currency growth was limited to 0.4%, according to figures announced by the company. Alongside the improvement in operating margin, the segment generated free cash flow of 214 crore rupees in the second quarter of fiscal 2027. New orders totaled 158 million dollars, up 20.8% year on year, excluding Tao Digital from the total, according to the order table in the investor presentation.
In its semiconductor business, Cyient reported an 8% increase in revenue from the previous quarter in the second quarter of fiscal 2027. The result marked the business's sixth consecutive quarter of sequential revenue growth, according to the company's investor presentation. New orders for the application-specific integrated circuit business also rose 50% from the previous quarter, according to the same presentation. The company cautioned, however, that a shortage of memory chips could slow semiconductor business growth in the near term. On the business's future profitability, Krishna Bodanapu reaffirmed during the earnings call that it continued to target breakeven in fiscal 2028. He said, according to the call transcript published by Investing.com: "The timeline for reaching breakeven remains in place, and we will reach it sometime during fiscal 2028."
At Cyient DLM, revenue totaled 393.1 crore rupees in the second quarter of fiscal 2027, according to the company's earnings announcement. Revenue grew 26.5% from the same period of the previous fiscal year. The company said its aerospace and industrial businesses drove growth during the quarter, while adjusted profit after tax also increased. That profit reached 15.82 crore rupees, up 25.8% year on year, according to the comparison provided in the earnings announcement. The order book reached a record 2,813.7 crore rupees at the end of the quarter. It increased by 214.8 crore rupees from the previous quarter, according to Cyient DLM's statement, alongside year-on-year growth in revenue and adjusted profit.
For shareholders, Cyient's board declared an interim dividend for fiscal 2027, according to the Financial Express. The board set the dividend at 12 rupees per share in its announcement. The shares have a face value of 5 rupees, according to details the newspaper reported from the board's decision. The announced dividend accompanied second-quarter results in which the group posted a quarterly increase in profit and a year-on-year decline. Payment to eligible shareholders is scheduled by 17 November 2026, according to the date specified in the announcement.