A small-cap stock, which is a major player in the global technology services and solutions sector surged nearly 7 percent after reporting a strong 26 percent QoQ net profit growth in Q2 FY25, bolstered by multiple acquisitions.
Share price variations:
With a market capitalization of Rs. 20,246.86 crores, Cyient Ltd. rose to an intraday high of Rs. 1,900.00 representing a 6.88 percent increase from its previous closing price of Rs. 1,777.55 per share.
Reason for the Rise:
According to exchange filings, Cyient Ltd reported a 26 percent quarter-on-quarter increase in net profit for Q2 FY25, reaching Rs 186.6 crore, up from Rs 147.6 crore in Q2 FY24. On a year-on-year basis, net profit surged by 1.63 percent, rising from Rs. 1,836 crore in Q1 FY25.
Revenue grew by 6 percent year-on-year in Q2FY25 to Rs. 1,900.2 crore, compared to Rs. 1,792 crore in the same period last year. Sequentially, revenue increased by 11.98 percent from Rs. 1,696.8 crore in Q1 FY25.
For the first half of FY25, revenue rose by 3 percent to Rs. 3,597 crores, up from Rs. 3,488.7 crores in H1 FY24, while net profit showed a decrease of 5.24 percent, reaching Rs. 334.2 crores compared to Rs. 352.7 crores in the previous year. The company also declared an interim dividend of Rs. 12 per share.
The company acquired a 27.3 percent stake in U.S.-based Azimuth AI, Inc., specializing in ASICs for Edge Computing, for USD 7.25 million. It also secured a full acquisition of Abu Dhabi & Gulf Computer Est, a digital services provider in the Energy sector, for USD 1.5 million plus a USD 0.4 million earnout contingent on performance.
About the company:
Incorporated in 1991 Cyient Ltd is engaged in providing global technology services and solutions specializing in geospatial, engineering design, IT solutions, and data analytics.
The company has a geographical presence and about 48.3 percent of its revenue is generated from the Americas, 30.1 percent from Europe, the Middle East, and
Africa, and 21.6 percent from Asia Pacific regions, including India, and about 43 percent of the revenue is derived from its top 10 clients.
Written By: Joseph Pv
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