Cyient announces fourth quarter and annual results for FY 2017

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Hyderabad, April 21
Cyient revenue grew by14.8% at INR 9,410 Mn in INR terms and the company termed it as the highest ever revenue.
Commenting on the results, Mr. Krishna Bodanapu, Managing Director and Chief Executive Officer Cyient, said “Q4 FY 17 was in line with our expectations both in revenue and margin. We recorded our highest ever revenue and free cash flow in this quarter. We witnessed a growth of 16.1 % YoY and 3.8% QoQ. Growth in our services business was driven by Utilities and Geospatial, Aerospace & Defense and Transportation Business units. The Design Led Manufacturing (DLM) business continues to improve performance and delivered a double digit growth YoY.”
For the year, we have delivered a strong performance and witnessed a growth of 13.7%, driven by Communications, Aerospace & Defense and DLM business units, while Utilities and Geospatial and Transportation business unit growth was impacted by cross currency fluctuation. Our group margins dropped by 10bps over FY 16 while the services margin improved by 60bps due to higher utilization and change in revenue mix. This year also marks our first year under the industry focused organization structure. We gained significant benefits under the new structure in terms of increased momentum in strategy execution resulting in acquisition of ODS, Blom and Certon during the year. Our customer centricity has improved, resulting in better customer satisfaction scores for the year. We have reorganized our semiconductor business to include IoT and Analytics under the leadership of Suman Narayan.
Our outlook for FY 18 is strong, backed by a strong pipeline and order backlog.We expect a similar growth in our services business while DLM business is expected to grow in the range of 20%. Our margins are expected to improve by 50bps driven by improvements in operational efficiency through the year. We expect to deliver a double digit earnings growth in FY 18.” Ajay Aggarwal, Chief Financial Officer, said I am pleased to report that Cyient generated a robust cash flow of INR 3,712 Mn in FY17, a growth of ~30% over last year. This translates to 64.9% of EBITDA for FY17, as against 54.5% last year. This cash generation is despite double digit growth in revenue. This is a reflection of our continuous improvement on various drivers of cash generation viz. DSO collection, Tax optimization, capital expenditure rationalization and other initiatives. Operating profit as a focus area has percolated to all levels in the organization. Our cash balance stands at INR 9,706 Mn ($ 149.8 Mn), despite three dividend payments, three acquisitions and three corporate venturing investments this year. With strong cash flow generation contributing to the cash balance quarter on quarter, we will continue to focus on strategic investments.
It is satisfying to see all-round growth in revenue, operating & net profit and cash generation this year, and we expect the momentum to continue in the coming quarters as well. Maximizing shareholder wealth is paramount to us and we will continue to focus on the same. We are well poised in achieving higher shareholder returns in the coming years.

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