IT firm Cyient Ltd shares slumped as much as 11.4% in intraday trade on Friday, i.e. 19 July, after the company’s June quarter earnings missed analyst expectations.
At 11:01 am, Cyient shares were trading at Rs 484.60, down 10.8%, on BSE after hitting an intraday low of Rs Rs 481.55. The stock has fallen around 22% in the last one year.
Cyient Limited, formerly known as Infotech Enterprises, said its consolidated revenue for the June quarter stood at $156.6 million, down 5.2% compared with $165.2 million in the previous quarter and 2.6% lower than the revenue of $160.8 million in the same quarter last year.
“Our first quarter results were disappointing. We recorded a lower revenue over the previous quarter. Our services business too was lower,” said Krishna Bodanapu, managing director and chief executive officer at Cyient.
However, 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 said.
Cyient’s profit after tax jumped 5.9% to $13 million in the June quarter against $12.3 million in the same period last year.
“Our EBIT (earnings before interest and tax) at group level witnessed a decline of 356 basis points quarter-on-quarter due to lower business volume, incremental spend on investments and wage hike impact,” he said.
“Our outlook for the year remains positive and we are confident on double-digit EBIT growth backed by revenue growth and cost optimisation initiatives,” he said.
Brokerage firm Phillip Securities cut its rating on the Cyient stock from ‘buy’ to ‘neutral’, while Centrum Broking downgraded it to ‘add’ from ‘buy’ after the June quarter results.
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