Cyient (532175) Q4 04/05 earnings summary

Executive summary

• FY05 consolidated revenue rose 37.2% to Rs. 2,571.25 million; EBITDA increased 59.8% to Rs. 466.54 million and PAT rose 203.8% to Rs. 273.74 million.

• Operations were reorganized into UTG and EMI verticals, with unified customer, sales and delivery leadership intended to deepen relationships and support larger engagements.

• Growth extended across business verticals and geographies; overseas subsidiaries improved profitability, including a turnaround in the U.K. operation.

Financial highlights

• Consolidated operating revenue was Rs. 2,571.25 million, up 37.2% YoY; total income was Rs. 2,613.84 million versus Rs. 1,909.45 million.

• Consolidated EBITDA was Rs. 466.54 million, up 59.8%; PAT was Rs. 273.74 million, up 203.8%, and EPS was Rs. 18.69 versus Rs. 6.21.

• Proposed dividend was Rs. 1.50 per share, up from Rs. 1.25; the proposal was subject to shareholder approval.

• Under U.S. GAAP, revenue was Rs. 2,574.14 million, operating income Rs. 294.45 million and net income Rs. 277.09 million; basic EPS was Rs. 18.97.

Outlook and guidance

• FY06 growth was expected from scaling existing customers and winning new accounts, supported by engineering design, embedded systems, technical publications and software services.

• Management targeted a $100 million organization by end-March 2006 and expressed confidence in achieving the goal.

• VARGIS expected a record FY06, citing rising backlog, utility-market expansion and continued civil-government business.

• Priorities included deeper domain expertise, broader service offerings and expansion of global delivery capacity; China and Russia were identified as potential delivery locations.