Cyient profit after tax declines by 14.8% in Q2
Cyient, an engineering solutions and services firm, has reported a decline of 14.8 per cent in its net profit in the second quarter ended September 30, 2020. The Profit After Tax in the quarter was at ₹83.9 crore as against ₹98.5 crore in the comparable quarter last year.The gross revenues saw a decline of 13.4 per cent as the revenues dropped to ₹1,003.3 crore in the second quarter as against ₹1,158.9 crore in the comparable quarter previous year.‘In line with expectations’“The second quarter results are in line with our expectations. We recorded a revenue of $135 million which was higher by 1.3 per cent over the previous quarter and lower by 16.3 per cent the same quarter previous year in constant currency,” said Krishna Bodanapu, Managing Director and Chief Executive Officer of Cyient.“We generated a free cash flow of $27.3 million in the second quarter of 2020-21. This quarter we focused on setting up the business back on a growth path. We continued our rigour on efficiency improvement and building pipeline for the business,” he said.“In this quarter we also restructured the organisation to realign ourselves to the market opportunities and focus on growth in key industries. The new structure will enable us to function in a more agile and efficient manner,” the CEO said.Outlook for second halfHe forecast a positive outlook for the second half of the financial year. “We expect growth based on the outlook and pipeline across most sectors. We will see a decline in the aerospace business due to seasonality challenges and lower number of workdays. For the year, we expect a double-digit decline in revenue,” he said.At the end of the second quarter, the company has 12,267 employees, lower by 2,602 over the 14,869 employees that it had at the end of the second quarter of the previous year.The voluntary attrition rate saw a decline at 9.2 per cent as against 18 per cent in the same quarter last year.