Cyient Declares ₹12 Interim Dividend Amid Positive Q2 Financials and Strategic Expansion in Semiconductor Sector

Cyient has announced an interim dividend of ₹12 per equity share (240%) for the financial year 2024-25, with a record date set for November 6, 2024. The dividend is expected to be paid by November 21, 2024.

Financial Performance

For the September 2024 quarter, Cyient reported:

• Net Profit: ₹179.10 crore, a 0.45% increase from ₹178.30 crore in the same quarter last year.
• Sales: ₹1,849.10 crore, up 3.97% from ₹1,778.50 crore in September 2023.
• Digital, Engineering, and Technology (DET) Revenue: US$ 173 million, showing a growth of 1.3% quarter-over-quarter but a decrease of 3.3% year-over-year in constant currency, with an EBIT margin of 14.2%.

Karthikeyan Natarajan, CEO, mentioned positive trends in Aerospace and Connectivity sectors, emphasizing strategic investments in AI solutions that are enhancing client engagements and driving transformation.

Strategic Developments

Cyient is making significant strides in its Semiconductor business, with plans to acquire a 27.3% stake in Azimuth AI, a custom ASIC company focusing on Energy and Industrial applications. The firm is also expanding its presence in the Middle East by acquiring Abu Dhabi & Gulf Computer Est., aiming to enhance its offerings in the Energy sector.

Share Price Analysis

Currently trading around ₹1,830, Cyient has shown recovery from a recent low of ₹1,650-₹1,700 after a 21% correction. Analysts identify immediate resistance at ₹1,900 and potential upside towards ₹2,100. Key support and stop-loss levels are suggested at ₹1,695, with buy-on-dips opportunities noted around ₹1,750.

Overall, Cyient is focusing on maintaining a socially conscious, inclusive, and sustainable approach while striving for growth through strategic investments and strong performance in its key business areas.

Disclaimer: The information provided in this update is for informational purposes only and should not be considered as financial advice. Past performance is not indicative of future results. Always conduct your own research or consult a financial advisor before making investment decisions.