Cyient (532175) Q4 02/03 earnings summary

Executive summary

• FY03 consolidated Indian GAAP revenue rose 22% to Rs. 1,613.0m; PBIDT fell 6% to Rs. 392.55m and PAT fell 26% to Rs. 149.04m.

• The standalone Indian business reported total income of Rs. 1,253.67m, up 24.8%; PAT after extraordinary items rose 4.0% to Rs. 266.57m.

• A shift toward engineering and software offset continued weakness in GIS; investments in sales, capabilities and delivery capacity weighed on operating costs and consolidated profitability.

Financial highlights

• Consolidated revenue was Rs. 1,613.00m versus Rs. 1,318.96m; PBIDT was Rs. 392.55m versus Rs. 415.80m; PAT was Rs. 149.04m versus Rs. 200.28m.

• Consolidated PBIDT margin was 24.3% versus 31.5%; PAT margin was 9.2% versus 15.2%; basic EPS was Rs. 10.33 versus Rs. 15.98.

• Standalone total income rose 24.8% to Rs. 1,253.67m; EBITDA increased 6.8% to Rs. 468.76m, while PBT declined 0.8% to Rs. 310.70m.

• Standalone PAT before extraordinary items fell 7.3% to Rs. 266.57m; after the prior-year extraordinary item, reported PAT rose 4.1% from Rs. 256.29m.

Outlook and guidance

• Engineering was positioned for better-than-industry growth, supported by a broadening customer base and large engagements; management expected stronger growth in the division.

• GIS growth prospects depended on newer services including photogrammetry, data maintenance and managed applications as traditional conversion markets remained weak.

• Software services were expected to benefit from demand linked to engineering and GIS customers; embedded software added a further revenue stream.

• The U.S. subsidiary forecast robust revenue and earnings growth in FY04, alongside plans to strengthen sales and acquire strategically important customers.