Cyient DLM (CYIENTDLM) Q3 24/25 earnings summary

Executive summary

• Acquired Altek Electronics LLC for $19.9 million; Q3 FY25 results include its contribution for the first time, expanding U.S. manufacturing and diversifying industrial and medical exposure.

• Altek contributed $10.24 million in revenue and $0.63 million in profit before tax since acquisition.

• Large contracts signed last year are gaining traction; qualified pipeline exceeded $1 billion in total contract value, with three large deals at advanced stages.

• Unaudited consolidated and standalone results for the quarter and nine months ended December 31, 2024, were reviewed and approved without qualification.

Financial highlights

• Q3 consolidated revenue was ₹4,442.36 million, up 38.4% YoY; standalone revenue was ₹3,573 million, up 11.3% YoY.

• Adjusted EBITDA rose 21.9% YoY to ₹359 million; adjusted EBITDA margin was 8.1%, down 109 bps, partly reflecting one-time M&A integration expenses.

• Adjusted PAT was ₹166 million, down 9.8% YoY; reported Q3 net profit was ₹109.91 million, versus ₹184.40 million a year earlier.

• 9M FY25 revenue rose 31.5% YoY to ₹10,915.71 million; adjusted EBITDA was ₹875 million and adjusted PAT was ₹427 million.

• Reported Q3 EBITDA was ₹279 million, down 5.3% YoY; reported 9M EBITDA was ₹795 million, up 8.9% YoY.

Outlook and guidance

• Revenue CAGR guidance remains 30% over the mid-to-long term, with annual variability expected.

• Q4 margin improvement is anticipated as low-margin business ramps down; full-year margin is expected to be flat YoY, with a 10% EBITDA margin target.

• The first half of next year may be soft, while full-year margin improvement is expected.

• Higher North American growth is expected from Altek and U.S. localization policies.