Cyient (532175) Q2 24/25 earnings summary

Executive summary

• Partial divestment of a 14.5% stake in Cyient DLM raised approximately INR 8,739 million (~$105 million), reducing holding to 52.16% and funding semiconductor growth and debt reduction.

• Strategic investments included acquiring a 27.3% stake in Azimuth AI and Abu Dhabi & Gulf Computer Est., and the acquisition of Altek Electronics Inc. in the US for $29.2 million to strengthen semiconductor, energy, and DLM segments.

• New subsidiary Cyient Semiconductors Private Limited (CSPL) established to focus on ASIC design and chip sales.

• Board declared an interim dividend of INR 12 per share, totaling INR 1,331 million.

• Recognized by ISG and Microsoft for GenAI and digital innovation capabilities.

Financial highlights

• Q2 FY25 group revenue was INR 18,491 million (₹1,849 crore), up 10.3% QoQ and 4% YoY; group PAT rose 24.5% QoQ and 4.6% YoY to INR 1,866 million.

• Group EBIT margin improved 58 bps QoQ but declined 147 bps YoY; DET EBIT margin at 14.2%, up 75 bps QoQ.

• DET segment revenue: $133 million (INR 14,496 million), up 1.3% QoQ in constant currency, down 3.3% YoY.

• Free cash flow to PAT conversion at 100% for DET in Q2; group free cash flow surged 301.7% YoY to INR 1,430 million.

• Interim dividend of INR 12 per share announced for FY25.

Outlook and guidance

• H2 expected to outperform H1, with Q3 stronger than Q2; guidance for flattish full-year revenue and 16% exit margin reaffirmed.

• Proceeds from divestment and acquisitions to drive accelerated growth in semiconductors, DLM, and expand sustainability business in the Middle East.

• All segments, including sustainability, expected to return to sequential growth in H2.

• Order intake for Q2: $156.8 million, down 14.7% YoY, but expected to improve in H2.