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 out by November 21, 2024.
Financial Performance
In the second quarter of FY25, Cyient reported a slight net profit increase of 0.45%, reaching ₹179.10 crore, compared to ₹178.30 crore in the same quarter last year. Sales also grew by 3.97%, totaling ₹1,849.10 crore. The company’s Digital, Engineering, and Technology (DET) segment generated revenue of $173 million, reflecting a 1.3% quarter-over-quarter growth, though it experienced a 3.3% year-over-year decline in constant currency. The EBIT margin for the DET segment expanded to 14.2%, driven by strong growth in Aerospace, Connectivity, and New Growth Areas.
Strategic Developments
Cyient is strategically advancing its Semiconductor business, which includes a partial divestment in Cyient DLM, allowing the company to utilize the proceeds for capital needs across both organic and inorganic initiatives. The firm has entered an agreement to acquire a 27.3% stake in Azimuth AI, a fabless custom ASIC company specializing in energy and industrial applications. Additionally, Cyient is expanding its presence in the Middle East with the acquisition of Abu Dhabi & Gulf Computer Est. (ADGCE), a technology consulting firm focused on the energy sector.
Stock Analysis
Currently trading at ₹1,830, Cyient’s stock shows signs of recovery after a 21% correction from its recent peak. Immediate resistance is identified at ₹1,900, and sustaining above this level could lead to further upside potential toward ₹2,100. Analysts see ₹1,750 as a potential buy-on-dips opportunity, with key resistance levels at ₹1,940 and ₹2,030. Investors are advised to maintain a stop-loss at ₹1,695 to manage risk effectively.
Disclaimer: This information is for informational purposes only and should not be considered financial advice. The content is based on publicly available data and does not guarantee any specific outcomes or performance. Investors should conduct their own research and consult with a financial advisor before making investment decisions. The author does not hold any responsibility for losses or damages incurred as a result of reliance on this information.
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