Cyient (532175) Q4 98/99 earnings summary

Executive summary

• FY1998-99 total income rose 122% YoY to Rs.2,234.21 lakh; profit after tax increased 156% to Rs.647.53 lakh.

• Growth reflected stronger software development and services demand, product development, and increased work from existing customers.

Financial highlights

• Sales income was Rs.2,212.68 lakh versus Rs.913.74 lakh in FY1997-98; total income included Rs.53.86 lakh other income and a Rs.32.33 lakh work-in-progress decrease.

• Profit before tax was Rs.659.24 lakh; tax provision Rs.11.71 lakh; profit after tax Rs.647.53 lakh versus Rs.252.84 lakh.

• Employees’ payments and benefits increased to Rs.524.74 lakh from Rs.270.88 lakh; depreciation rose to Rs.176.58 lakh from Rs.57.42 lakh.

• Proposed dividend was 18% (Rs.99.71 lakh), with Rs.9.97 lakh dividend tax provision; Rs.497.87 lakh transferred to general reserve.

Outlook and guidance

• FY1999-2000 began with an order backlog of Rs.3,300 lakh; the outlook cited sustained growth potential, supported by a strong US economy.

• Geologic, EWIS and Digital Pages were ready for shipment; royalties from the in-car navigation product were expected during FY1999-2000.

• Internet Solutions was forecast to generate substantial revenue; the company sought to extend Indian telecom GIS success into Southeast Asia and Europe.

• The 18% dividend was recommended to conserve cash for business investment and growth opportunities, including potential acquisitions.