IT firm Cyient Q1 profit up 10% at Rs 91 crore

IT firm Cyient Thursday posted a 9.7 per cent rise in net profit at Rs 90.5 crore for the June 2019 quarter.

The Hyderabad-based company had posted a net profit of Rs 82.5 crore in the corresponding quarter a year ago, Cyient said in a statement.

Its revenue increased marginally to Rs 1,089 crore in April-June quarter as against Rs 1,080 crore in the year-ago period. However, on a sequential basis, the revenue declined by 6.4 per cent from Rs 1,162.9 crore.

"Our Q1 FY20 results were disappointing, we recorded a revenue of USD 156.6 million lower by 5.2 per cent quarter-on-quarter and 2.6 per cent year-on-year," Cyient Managing Director and CEO Krishna Bodanapu said.

During the quarter, the company made investments in building its offerings through strategic investment in Cylus, a rail cybersecurity company, Bodanapu added.

"This investment will allow us to strengthen our focus on digitisation and cybersecurity solutions for the rail industry. We will continue to invest in strategic areas to strengthen our offerings," he added.

Bodanapu said the company's outlook for the year remains positive and it is "confident on double digit EBIT growth backed by revenue growth and cost optimisation initiatives".

At the end of June 2019, the company had a total of 15,043 employees with a voluntary attrition rate of 17.4 per cent.

The board of directors also approved the merger of wholly-owned subsidiaries, Cyient DLM and Cyient Insight, with the company.