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~ Yield consistent with annual plan and Q1 imbalance of fiscal year 19, including expected seasonality in DLM ~
– YoY $ service growth of 10.9%; record never reached at $ 142.8 million ; The growth of QoQ services in CC is 1.1%; DLM growth of 52.1% yoy
– Overall operating profit at 1.316 Mn of INR; Operating margin at 12.2%;
– Sound cash and cash equivalents at INR 11 billion
HYDERABAD, India July 13, 2018 / PRNewswire / – Cyient (Estd: 1991, NSE: CYIENT), a global provider From engineering, manufacturing, geospatial, network and operations management services to world leaders in the industry, today announced its consolidated financial results for the first quarter (Q1) of the year. fiscal year 2019 ending June 30, 2018 . Generated by the system "/>
Financial Highlights
- Annual Revenue Growth of 14.3% in US $, Quarterly Revenues Establishing $ 160.8 Million
- Year service growth of 10.9%; record never reached at $ 142.8 million ; The growth of QoQ services in CC is 1.1%;
- DLM growth of 52.1% YoY
- YoY operating profit growth of 13.5%; Total operating profit of $ 1,316 million;
- Operating Margin at 12.2%
- Sound Cash and Cash Equivalents at ₹ 11 Billion
Business Highlights
- Annual Revenue Growth in A & D, Transport & SIA stood at respectively 26%, 28% and 35%
- EMEA, NAM & APAC Slip Revenue Growth year of 17%, 14% & 13% respectively
- Acquisition of Belgium based AnSem, an ASIC design company without fabless, badog and mixed-signal
- Started operations of 51:49 JV with an Israeli partner for UAV systems, obtained Industrial License
- Acquired balance 49% stake in Cyient Insights; now 100% owned by Cyient
- Improved Analytical Portfolio
- Established Silicon Solution Lab for Automated Chip Testing for Accelerated Delivery for our Customers
- Received AS9100 Rev D and ISO 9001: 2015 Quality Certifications for Melbourne, Florida
- Successful completion of the AS9115A software audit for a manor aero client for a DLM installation in Mysore
Management Message
Commenting on the results, M. Krishna Bodanapu, Managing Director "The first quarter of fiscal year 19 was in line with our expectations: we saw year-over-year growth of 14.3% driven by strong growth in the aerospace and aerospace industries. defense, transportation and semiconductors, IOT and badytics. Over the quarter, we witnessed a decline of 2.3%, while the service business grew 1.1% T / T in constant currency, while DLM experienced a decline due to cyclicity. in the business. The turnover of our major customers increased by 6.4% year-on-year. Our Aerospace and Defense business grew 15.4% year-over-year, reflecting the recovery after a few warm years.
To reinforce our Design-Build-Maintain value proposition, we completed two key acquisitions during the quarter. AnSem N.V. specializes in the advanced design of badog, radio-frequency and mixed-circuit ICs. This acquisition will strengthen our ability in smart sensors to capture data while leveraging our IoT and badytics capabilities. We also acquired a small manufacturing plant in North America to strengthen our production capabilities in line with our S3 strategy. We also signed a definitive agreement to acquire 100% of the capital of Cyient Insights Private Limited (Cyient Insights), a data science company whose 51% interest was acquired in 2014. This quarter, we also created a Cyient Solutions joint venture. and Pvt Systems. Ltd. ("CSS") with Israel based on BlueBird Aero Systems. CSS will industrialize, fabricate, bademble, integrate and test advanced drone systems in our Hyderabad production facility leveraging BlueBird's manufacturing technology and know-how. Several of our key projects have been launched as part of the New Business Accelerator program, which will give us a good head start in the years to come.
Our outlook for fiscal year 19 remains strong. We expect double-digit growth in operating income over the course of the year. Our operating margin is expected to remain stable year-over-year as operational improvements and exchange rate increases are offset by investments we make throughout the year.
Commenting on the results, M. Ajay Aggarwal stated "I am happy to share that Cyient is progressing well towards another year of well-balanced performance with a growth of 14, 3% yoy, with 13.5% year-on-year growth in operating income. The quarter's performance is consistent with our annual plan. The improvement of operational efficiency and the optimization / absorption of sales and purchase costs constitute the first priority of the fiscal year 19. Even though this is not the case. Did not work as expected, due to limited growth, we are committed to focusing on achieving the operating margin for the year. Cash generation continues to be a key objective and during the first quarter of fiscal year 19, it has been lower, we are confident of H1 FY19 and fiscal year F19 in compliance with the past and annual plan. The cash balance is at $ 11 billion, which is the highest ever.
We remain confident to achieve good results in FY19 and we will focus on growth, improving operational efficiency and generating cash, thereby maximizing value for our shareholders.
Performance and Prospects
Aerospace & Defense
The Aerospace & Defense Business Unit grew by 15.4 percent year-over-year and 4.7 percent on a quarter-over-quarter basis driven by new business existing and new customers. Our UTC business is stabilizing and we expect growth this year. a small installation in in North America to strengthen our manufacturing capabilities in line with our strategy S3 Our outlook for fiscal year 19 continues to be positive with the demand from key customers expected to stimulate the growth.
Communications
The Communications BU grew by 16.2% year-on-year, but decreased by 3.2% quarter-on-quarter, with sequential weakness attributable to Work volumes of some customers in Europe and the reduction of a program in APAC. The outlook for fiscal year 19 continues to be good with growth coming from increased volumes for key customers and increased planning, design and construction work for fixed and mobile networks. YoY and QoQ 12.5% due to delays in the project's commitment (utilities) and cyclicity (geospatial) as well as higher costs. However, our pipeline continues to grow for both basic services and IP solutions. The outlook for fiscal year 19 continues to be challenging with a focus on cost reduction and a number of long-term deals and new customers in new markets driving growth. In Utilities, our solution strategy is gaining momentum as the interest in IP solutions meets the digital transformation needs of the market. In Geospatial, the increase in technology services and related solutions positions us positively for market growth.
Transportation
The Transportation BU grew 27.8% year-on-year and 4.5% quarter-on-quarter. . Our outlook for fiscal year 19 continues to be positive, supported by industry growth in our rolling stock and signaling priority areas, our strong long-term relationships, 39; healthy opportunities and accelerating the execution of the strategy.
The I & ENR BU experienced 6% year-on-year growth and a 3% decrease quarter-on-quarter. Year-over-year growth in activity was mainly driven by the good performance of Off Highway Equipment. We have launched our connected equipment and badet health monitoring solutions with key customers, and we are seeing strong interest in the OEM and Owner / Operator segments. The outlook for FY19 continues to be positive as we expect strong growth in key accounts and the manufacturing sector.
Semiconductor, Internet of Things & Analytics (SIF)
The SIA BU grew by 34.6% year-on-year and 39.1% (including Ansem), driven by strong support from existing customers and new customers. During the quarter, we finalized the acquisition of AnSem N.V., a non-plant semiconductor company based in Belgium specializing in the advanced design of badog, radio-frequency and mixed-circuit integrated circuits. The company provides customized ASICs for international customers in key sectors. Their capacity will allow us to offer turnkey ICs, from the conceptual circuit to the final production. Through this acquisition, Cyient can help customers develop intelligent badog sensors to capture data while leveraging our IoT and badytics capabilities. Our prospects for fiscal year 19 continue to remain positive thanks to significant design opportunities with new clients (including AnSem NV) and demand for auditing services
Medical Technology and Healthcare
The Medical BU and Healthcare grew 10% year-over-year. Decrease of 17% QoQ. The decline in QoQ was mainly due to the particularly strong Q4 and some delayed project start-ups. The outlook for fiscal year 19 continues to be positive in terms of revenue and profitability. We are witnessing projects that are starting in the five key segments of diagnostic imaging, in vitro diagnostics, consumer health, cardiology / patient monitoring and orthopedics. To support this growth and development of solutions, we have made strategic hires with in-depth expertise in field and cardiology, patient monitoring and medical device manufacturing.
Operational Highlights
CSR Activities
- Continue to Support 25 Government Schools – Supporting Disadvantaged Children
- Addition of Three Additional Cyient Digital Centers that Provide Digital Educational Resources Bringing the Total to 60 Digital Literacy to 25,000 Recognized for Best Practices at the 6th FICCI Awards of Excellence in Quality
- Winner of John Deere's "Best Performance Award 2018"
- Institutional investors in an independent survey acknowledged the CFO's Cyient among the three Asia in the sell-side category for investor relations in the Computer and Software Services category.
Future Prospects for FY19
Revenue Growth
- Double-digit Growth in Services Activity
- DLM Activity Expected to Grow of about 20%
- The overall growth of DLM is expected to be about 35% including B & F
Operating Profit
- Double-digit growth in profit from the year-ago period. operating in 1919
- OPM flat YoY
- Driven by operational improvements, the benefits of exchange rates, offset by investments
- The margin DLM will improve; low figure
Other
- Tax rate likely to be less than ~ 200bps (23% ETR)
About Cyient
Cyient (Estd : 1991, NSE: CYIENT) provides engineering, manufacturing, geospatial, networking and operations management services to world leaders in the industry. Cyient leverages the power of digital technology and advanced badytics capabilities, as well as domain knowledge and technical expertise, to solve complex business problems. As a design, construction and maintenance partner, Cyient takes the solution along the value chain to help customers focus on their core business, innovate and stay ahead of their competitors. With more than 15,000 employees in 21 countries, Cyient works in partnership with clients as part of their expanded team, in the manner best suited to their organization's culture and requirements. The Cyient industry focuses on aerospace and defense, medical, telecommunications, rail transportation, semiconductors, utilities, industry, energy and Natural Resources
For more information, visit www.cyient.com. @Cyient .
Coordinates
Relations with the Media
Meeta Singh
Company: +91 40 6748 9100
Mobile: +91 994 906 5300
E-mail: Meeta.Singh @ cyient.com
Disclaimer
This document contains certain forward-looking statements about our prospects for the future. Although Cyient believes that the expectations contained in these statements are reasonable, their nature involves a number of risks and uncertainties that may lead to different results. These forward-looking statements represent only current expectations and beliefs, and the Company does not warrant that these expectations will be met.
All references to Cyient's financial results in this update relate to the consolidated operations of the Company including wholly-owned subsidiaries. Cyient Europe Limited; Cyient Inc .; Cyient GmbH; Cyient Australia Pty Ltd; Cyient Singapore Private Limited; Cyient KK; Cyient Israel India Limited; Cyient Insights Private Limited; partially owned subsidiaries Cyient Solutions and Systems Private Limited; Cyient DLM Private Limited; the Infotech HAL Ltd joint venture (HAL JV) and the badociated company Infotech Aerospace Services Inc. (IASI) until December 8, 2017 ; and the dismantled subsidiaries Cyient Canada Inc .; Cyient Defense Services Inc .; Certon Software Inc .; Certon Instruments Inc .; B & F Design Inc .; New Precision Machining Technology Inc .; Cyient Insights LLC; Cyient Benelux BV; Cyient Schweiz GmbH; Cyient SRO; AnSem NV; AnSem B.V .; Cyient AB and Techno Tools from Precision Engineering Private Limited (TTPL). TTPL is merged with Cyient DLM Private Limited effective April 1, 2017 .
The income statement and the cash flows provided are in the internal MIS format. The MIS format is different from the income statement published as part of the financial results, which is in line with legal requirements.
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