Cyient (532175) Q4 01/02 earnings summary

Executive summary

• FY02 consolidated revenue rose 49% to Rs.1,362.1 million; consolidated profit after tax was Rs.200.3 million after a Rs.31.3 million extraordinary interest charge.

• Standalone total income increased 66.9% to Rs.1,004.7 million, while profit after tax after the extraordinary item rose 48.7% to Rs.256.3 million.

• A strategic Pratt & Whitney relationship, including a 15% equity investment, was the key FY02 development and drove rapid expansion in engineering services.

Financial highlights

• Standalone revenue from exports reached Rs.907.7 million, up 66.8% YoY; domestic sales rose 114.1% to Rs.66.6 million.

• Standalone EBITDA rose 91.6% to Rs.439.0 million; PBT before extraordinary items increased 78.8% to Rs.313.5 million.

• Standalone PAT before the Rs.31.3 million non-recurring debenture interest charge was Rs.287.6 million, up 66.9% YoY; reported PAT was Rs.256.3 million.

• Consolidated FY02 revenue was Rs.1,362.1 million and PAT after the extraordinary charge was Rs.200.3 million; EPS was Rs.31.97 basic and Rs.31.34 diluted.

Outlook and guidance

• FY03 engineering-services ramp-up was expected to accelerate under the five-year Pratt & Whitney relationship, with a dedicated Hyderabad center and Bangalore facility supporting delivery.

• Strategy centered on niche segments, higher-value services, cross-selling large enterprise accounts, overseas expansion and selective acquisitions, particularly in the U.S.

• GIS outlook emphasized a larger share of higher-value photogrammetry, migration and maintenance work; software opportunities included embedded systems, legacy migration and portal development.

• The U.S. subsidiary expected a financial turnaround in FY03; the European subsidiary projected a return to growth and profitability after investment-led losses.