India: Cyient has reported its consolidated financial results for the fourth quarter (Q4) of FY 2018 ending March 31, 2018 along with the annual results.
Financial Highlights
- Revenue growth of 12.9% in $ terms at $ 607.4 Mn; 11.7% in Constant Currency
- Operating profit growth of 13.3% at ₹ 5,492 Mn
- Net profit growth of 16.1% at ₹ 4,296 Mn
- Highest ever cash balance at ₹ 10,937 Mn (US$ 168.0 Mn) with continued healthy cash generation post one acquisition and increased dividend payout
- Dividend for the full year at ₹13/share – highest ever
Business Highlights
- Well rounded growth across all Business Units and Geographies
- All eight BUs have witnessed growth in YoY terms
- EMEA and APAC grew ~22% and ~16% YoY
- Lowest Attrition in last four years
Financial Highlights
- YoY $ revenue growth of 16.8%; 8.3% QoQ – highest ever at $164.6 Mn
- YoY $ services growth of 14.3%; 2.0% QoQ growth – highest ever at $142.7 Mn
- Operating profit at ₹1,492 Mn – QoQ growth of 4.3%, YoY growth of 19.6%
- Operating margin at 14.1% – up 79 bps YoY
- Net profit YoY growth of 16.2%; QoQ growth of 11.8% – at ₹1,215 Mn
- DLM highest ever quarterly revenue and operating profit in recent years
- Company declared a final dividend of ₹ 4.0/Share
Business Highlights
- Well rounded growth across all Business Units and Geographies
- All eight BUs have witnessed growth in YoY terms
- EMEA, APAC and Americas grew ~31%, ~13% & ~9% YoY in $ terms
- Completed acquisition of B&F Design Inc.
Commenting on the results, Mr. Krishna Bodanapu, MD & CEO, said, “Q4 FY18 performance was in line with our expectations. We recorded our highest ever revenue and operating profit in the quarter. We delivered a $ growth of 16.8% YoY and 8.3% QoQ. Growth in our services business was driven by Communications and Semiconductor, IoT and Analytics Business units. The Design Led Manufacturing (DLM) business was positively impacted by the seasonality in the business and delivered a growth of 36.0% YoY and 80.5% QoQ. This quarter we were awarded with ‘Boeing Supplier of the Year’ Award for the fourth time in six years and ‘Rail & Road Transport Award’ and ‘Best Railway Signalling Design Company 2018’ for the second consecutive year.
For the year we delivered a strong performance. We witnessed a $ revenue growth of 12.9% YoY with growth led by Communications, Transportation and Aerospace and Defense business units. Our DLM business grew by 13.2% over the year with broad-based growth across customers. This year we gained momentum in strategy execution resulting in acquisition of B&F Design Inc. in line with our Design, Build, and Operate & Maintain strategy. We also signed a MoU with Israel based Bluebird Aerosystems Ltd to address UAV based opportunities.
Our outlook for FY19 is strong, backed by a strong pipeline and order backlog. We expect a double-digit growth in our services business while DLM business is expected to grow in the range of 20%. We expect a double-digit growth in our operating profit.
Mr. Ajay Aggarwal, President & CFO, said, “I am pleased to share that for FY18, we saw a strong and a well-rounded growth of 12.9% in $ revenue, operating margin expansion of 58 bps at 14.0% and net profit growth of 16.1% for FY18. Healthy conversion of Free Cash Flow to EBITDA continues translating into a highest ever cash balance of $168 Mn. We also declared a final dividend of ₹4/share in Q4 FY18, taking the total dividend for the year to ₹13/ share, highest ever.
