India’s Cyient beats Q2 revenue estimates on sustainability, transport demand

BENGALURU (Reuters) – India’s Cyient on Thursday reported a bigger-than-expected rise in its second-quarter revenue on strong growth in sustainability and transportation segments.

The engineering and technology solutions company’s consolidated revenue from operations jumped 27.4% to 17.79 billion rupees ($213.8 million) for the September quarter, beating analysts’ average estimate of 16.67 billion rupees, as per LSEG data.

The company’s consolidated net profit saw an over two-fold rise to 1.78 billion rupees in the September quarter from a year earlier.

Revenue from its biggest digital, engineering and technology segment rose 22% to 14.76 billion rupees during the quarter.

The company’s order intake for digital, engineering and technology business saw a 40% year-on-year rise.

Revenue from the sustainability business rose nearly 72%, while the transportation segment saw a growth of 22%.

Cyient’s revenue growth was stronger compared with its larger peers.

Market leader Tata Consultancy Services posted weaker-than-expected second-quarter revenue last week, while Wipro reported an unexpected drop in revenue on Wednesday.

Wipro has warned it expects the decline in its IT services revenue to accelerate this quarter, while Infosys has cut its full-year revenue forecast as clients are delaying decision making and cutting discretionary spends.

Shares of Cyient closed nearly 5% up at 1,763.20 rupees ahead of results on Thursday.

The company’s design-manufacturing business Cyient DLM, which was listed in July, reported an over two-fold rise in September quarter net profit.

($1 = 83.2150 Indian rupees)

(Reporting by Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala)