Cyient (532175) Q4 99/00 earnings summary

Executive summary

• Revenue rose 56% YoY to Rs 3,535.63 lakh and PAT increased 59.42% to Rs 1,032.31 lakh; 97% of revenue came from exports.

• The business model shifted from predominantly conversion services toward enterprise GIS and engineering solutions, with acquisitions broadening markets and capabilities.

• About 90% of revenue came from existing clients; 24 new clients contributed about 10% of annual revenue.

Financial highlights

• Total income was Rs 3,535.63 lakh versus Rs 2,266.54 lakh in FY99; operating profit (PBIDT) was Rs 1,363.62 lakh versus Rs 906.03 lakh.

• PBT was Rs 1,053.51 lakh versus Rs 659.24 lakh; PAT was Rs 1,032.31 lakh versus Rs 647.53 lakh.

• Exports were Rs 3,295.35 lakh versus Rs 2,088.89 lakh; reported export contribution was 97% of sales revenue.

• EPS was Rs 18.05 versus Rs 11.70; total pro-rata dividend was 20%, comprising 15% interim and 5% recommended final dividend.

Outlook and guidance

• Growth focus on the U.S. and Europe, where demand for enterprise GIS and engineering services was reported as rising.

• A 60-professional team was retrained for enterprise web-enabling and e-solutions; aggressive pursuit of this market was planned.

• More than 3% of revenue was spent on R&D and training to strengthen competencies, productivity and service quality.

• Management flagged growth execution and margin protection as challenges; forward results could vary with market acceptance, product-version risks, third-party relationships and competition.