HYDERABAD (Reuters) – India’s Cyient Ltd reported a 45% rise in quarterly profit on Tuesday that just missed analysts’ estimates as rising expenses at the engineering and IT services company offset strong order pipeline and demand recovery in some sectors.
The Hyderabad-based company reported a 45% rise in consolidated net profit of 1.68 billion rupees ($20.53 million)for the first quarter ended June 30th 2023, compared with 1.16 billion rupees a year ago.
Analysts, on average, were expecting Cyient to earn 1.73 billion rupees ($21.14 million), as per Refinitiv data.
Cyient said its U.S. subsidiary incurred legal costs of 111 million rupees ($1.36 million) during the quarter, and overall expenses rose 30%.
The company’s results come after bigger rivals like Infosys Ltd, Tata Consultancy Services and Wipro have either cut forecast or missed estimates as the country’s IT industry faces slowing demand for services and cancellation of orders prompted by fears of a global recession.
For Cyient, revenue from its biggest Digital, Engineering and Technology (DET) segment rose to 14.5 billion rupees ($177.09 million), up from 10.6 billion rupees($129.58 million)a year earlier. Consolidated revenue from operations rose 35% to 16.9 billion rupees ($206.40 million) for the quarter.
“We won 6 large deals in DET with a total contract potential of $48.8 million in this quarter. The order intake stood at $193.2 million, up 32.5% year-on-year. Our pipeline for the year looks robust,” Cyient’s Managing Director Krishna Bodanapau said on Tuesday.
Cyient shares closed 1.07% lower at 1466.55 rupees on Tuesday.
($1 = 81.8305 Indian rupees)
(Reporting by Rishika Sadam)
