This IT stock, which deals in the business of focused engineering, manufacturing, data analytics, and networks and operations, was in focus after its recent events had an impact on its stock price and concerned about the company’s direction as the CEO resigned as well. Let us look into the recent events, Business Mix, and its future plans.
Share Price Movement
In Tuesday’s trading session, Cyient share price was up by 2.21 percent and closed at Rs. 1,230 per share from the previous close of Rs. 1,203.45 per share.
In the past year, the stock has given around 38.36 percent negative returns, and compared to the Nifty Index, Cyient has underperformed. From its 52-week high of Rs. 2,190, the stock is trading at a discount of ~44 percent.
Recent Events
The stock experienced a decline on January 24, 2025, by dropping ~23 percent on a single day. This sharp decrease resulted from several factors. The company reported a decline in net profit for Q3FY25, and the company said “For FY25, we expect DET revenue degrowth to be in the range of 2.7% YoY in constant currency terms”.
While the concerns were rising for investors as the CEO Karthikeyan Natarajan unexpectedly resigned, citing a desire to explore new challenges. Brokerages responded by downgrading the stock, with Motilal Oswal reducing its rating to ‘Sell’ and Nuvama with a ‘Hold’ rating with a target price of Rs. 1,700.
Future Plans
Cyient Limited plans to achieve growth in FY26 by leveraging its record-high sales pipeline and recent large deal wins. The company secured 13 large deals in Q3FY25 while contributing to its highest-ever order intake, which grew 5 percent year on year. For FY26, the company targets revenue growth from H1 onwards, while avoiding the back-ended growth seen in FY25.
It also aims to expand EBIT margins by 100 to 150 basis points for FY26 through operational efficiency. Additionally, Cyient will complete the leadership transition, while appointing a new DET CEO to continue driving momentum and capitalize on opportunities in Cyient Semiconductor and DLM businesses.
Financials
In its latest filing for the quarter ending December 2024, the company reported a 5.7 percent rise in revenue, reaching Rs. 1,926 crore compared to Rs. 1,821 crore in Q3FY24. During the same period, net profit declined by 16.33 percent from Rs. 153 crore in Q3FY24 to Rs. 128 crore in Q3FY25.
Business Segments
The company earns 76.53 percent of its operational revenue from Digital, Engineering & Technology (DET), followed by 22.97 percent from Design Led Manufacturing, and the remaining 0.48 percent from Others for the December 2024 quarter.
Geographically, in the DET segment, the company earns its operational revenue of 49.5 percent from the Americas, 28.8 percent from Europe, the Middle East, and Africa, and the remaining 21.7 percent from Asia Pacific for Q3FY25.
Company Profile
Cyient Limited is a Hyderabad-based multinational technology company specializing in engineering, geospatial solutions, data analytics, and IT services, serving industries like aerospace, automotive, and telecommunications.
Written by – Santhosh S
