FOURTH Quarter AND ANNUAL results for FY 2017

India - English

• USA - English

HYDERABAD, India, April 20, 2017 /PRNewswire/ --

• Revenue growth of 16.3% in INR terms at INR 36,065 Mn; US$ growth of 13.7% at US$ 538 Mn; 14.9% in constant currency
• Operating Profit up 15.7% at INR 4,848 Mn
• Net profit up 10.7% excluding exceptional item at INR 3,699 Mn
• Highest ever cash balance at INR 9,706 Mn (US$ 149.8 Mn) in spite of three acquisitions and increased dividend payout
• Cash generation up ~30% at INR 3,712 Mn

KEY HIGHLIGHTS: FY 2017

Financial Highlights

• Strong and well-rounded Performance
• Revenue growth of 16.3% in INR terms at INR 36,065 Mn; US$ growth of 13.7% at US$ 538 Mn; 14.9% in constant currency
• Operating Profit up 15.7% at INR 4,848 Mn
• Net profit up 10.7% excluding exceptional item at INR 3,699 Mn
• Cash generation up ~30% at INR 3,712 Mn
• Highest ever free cash flow conversion at 65% of EBITDA
• DSO lowest ever 74 days down 5 days, Tax rate of 24.2% down 50 bps
• Highest ever cash balance at INR 9,706 Mn (US$ 149.8 Mn) in spite of three acquisitions and consistent dividend payout
• Consistent dividend payout @~30% (INR 8/share), over and above special dividend of INR 2.5 per share declared on the 25^th anniversary
• Improved Utilization by 160 bps at 76.8%

Business Highlights

• Enhanced focus on long term initiatives - investments in three acquisitions: ODS (Australia) in Q1, Blom (UK) in Q3 and Certon (US) in Q4. Invested for a minority stake in two start-up ventures and made IP investment through partnership
• Robust growth in EMEA 28% and APAC 30%
• Rewarding the two key stakeholders who have been with us throughout our journey of 25 years, Company had announced special dividend for shareholders and Restricted Stock Units (RSU) scheme to eligible associates in Q2. In line with the announcement, RSUs including cash-out option have been granted to ~9000 associates in Q4 FY17 and expense of INR 261 Mn has been considered as exceptional item in the financial statements of Q4 FY17, to be fair-valued again in Q4 FY18
• Our Founder and Executive Chairman Dr. B.V.R. Mohan Reddy was honored with the prestigious Padma Shri award for his contribution in trade and industry

Others

• Financials have been prepared in accordance with IND AS; FY16 Financials are also restated for comparison purposes. The impact on FY16 due to this restatement is minimal
• Rangsons Pvt. Ltd. has been renamed to Cyient DLM Pvt. Ltd. w.e.f. 18^th January, 2017
• FY17 consolidated statement includes four months of Blom financials (Q3 one month, Q4 two months) and two months (in Q4) of Certon financials. Other operating and financials metrics is excluding Blom and Certon in Q4 FY17. Going forward, these metrics will be included in FY18

KEY HIGHLIGHTS: Q4 FY 2017

Financial Highlights

• Strong YoY revenue growth of 16.1% in US$ terms at US$ 141 Mn and 3.8% QoQ growth (3.6% in constant currency)
• Revenue grew by14.8% at INR 9,410 Mn in INR terms, highest ever revenue
• Operating Profit is INR 1,247 Mn (YoY growth of 18.0%), Operating margin at 13.3%
• Net profit (excluding exceptional item) is INR 1,046 Mn, Up 36.9% YoY and 11.1% QoQ;
• Robust Free Cash Flow (FCF) generated stands at INR 1,385 Mn, ~92% of EBITDA, helped by DLM's cash generation of INR 156 Mn
• Attrition at 19.5%; Lowest ever in the recent past

Business Highlights

• Completed the acquisition on a US based verification and validation company, Certon Inc. for the avionics division of Aerospace and Defense BU
• Robust growth witnessed across geographies: EMEA 6.6%, APAC 2.0% and NAM 2.7%

For more detailed information on the fourth quarter and annual results for FY2017, please click here.

Disclaimer

This document contains certain forward-looking statements on our future prospects. Although Cyient believes that 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 the current expectations and beliefs, and the company provides no assurance that such expectations will prove correct.

All the references to Cyient's financial results in this update pertain to the company's consolidated operations comprising wholly-owned subsidiaries Cyient Europe Limited; Cyient Inc.; Cyient GmbH; Cyient KK; Infotech Geospatial (India) Pvt. Ltd. (IGIPL): partly owned subsidiaries Cyient Insights Private Limited; Cyient DLM Private Limited; joint venture Infotech HAL Ltd (HAL JV) & associate company Infotech Aerospace Services Inc. (IASI).

The income statement and cash flow provided is in the internal MIS format. MIS format is different from the income statement published as part of the financial results, which is as per the statutory requirement.

About Cyient

Cyient (Estd: 1991, NSE: CYIENT) provides engineering, manufacturing, geospatial, network and operations management services to global industry leaders. Cyient leverages the power of digital technology and advanced analytics capabilities, along with domain knowledge and technical expertise, to solve complex business problems.  As a Design, Build and Maintain partner, Cyient takes solution ownership across the value chain to help clients focus on their core, innovate, and stay ahead of the curve.

Relationships form the core of how Cyient works. With nearly 14,000 employees in 21 countries, Cyient partners with clients to operate as part of their extended team, in ways that best suit their organization's culture and requirements. Cyient's industry focus includes aerospace and defense, medical, telecommunications, rail transportation, semiconductor, utilities, industrial, energy and natural resources.

For more information, please visit www.cyient.com.

Follow news about the company at @Cyient 

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