Cyient (532175) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 results were weaker than expected, with group revenue at $200.9M (₹16,757 million), down 1.5% YoY in constant currency, and DET revenue at $169.6M (₹14,144 million), down 5% QoQ and 3.6% YoY in constant currency, mainly due to operational challenges and project delays.

• DET EBIT margin declined to 13.5%, down 256 bps QoQ and 260 bps YoY, impacted by revenue movement and investments in sales and technology.

• Five large DET deals were won in Q1 with a total contract value of $52.4M.

• A new wholly owned semiconductor subsidiary was established to focus on turnkey ASIC and chip design, aiming to capitalize on growth in the semiconductor sector.

• Premier Award for Excellence received from RTX for the third consecutive year.

Financial highlights

• Group revenue was ₹16,757 million ($200.9M), down 0.6% YoY; group PAT was ₹1,439 million, down 18.6% YoY; basic EPS was ₹13.09, down from ₹15.35 YoY.

• DET segment Q1 FY25 revenue was $159.6M (₹14,144 million), down 5% QoQ and 3.6% YoY in constant currency; DET PAT was ₹141 crore (EPS: ₹12.86); DET FCF was ₹164 crore, down 30% QoQ.

• Group FCF was -₹15 crore, impacted by the DLM business cash cycle.

• Total expenses for the quarter were ₹15,022 million.

Outlook and guidance

• FY25 revenue guidance revised to flattish YoY in constant currency, with recovery expected from Q2 and stronger H2 performance.

• EBIT margin is expected to recover to previous year’s level (16%) by Q4 FY25, driven by revenue growth.

• Management has incorporated learnings from Q1 into new guidance, applying more conservative forecasting and risk adjustments.

• Medium-term outlook remains positive, with double-digit order book growth and strong performance from top customers.

• No explicit forward-looking guidance was provided in statutory filings.