Cyient Limited , a global engineering and technology solutions company, has reported its financial results for the first quarter, showcasing revenue growth and strategic restructuring initiatives.

Revenue Performance

Cyient's Q1 revenue reached $162.70 million (₹1,393.00 crores), representing a 0.90% quarter-over-quarter growth and a 1.00% year-over-year growth in US dollar terms. The company's Design, Engineering & Technology (DET) segment, which now excludes the semiconductor business, showed these results following the completion of the semiconductor business carve-out.

Segment Performance

The company's performance varied across its business segments:

• Transportation & Mobility grew by 2.50% quarter-over-quarter and 7.30% year-over-year in US dollar terms.
• Networks & Infrastructure experienced a 2.90% quarter-over-quarter decline.

Profitability and Cash Flow

The DET segment's EBIT margin stood at 12.00%, down 63 basis points quarter-over-quarter, primarily due to wage hikes. Despite this, the company reported strong free cash flow conversion of 70.00%. Cyient's cash position strengthened by ₹262.00 crores quarter-over-quarter.

Strategic Initiatives and Restructuring

A significant development in Q1 was the completion of the semiconductor business carve-out. This business will now operate as a separate subsidiary, Cyient Semiconductor, positioned for accelerated growth in the semiconductor market.

New Deals and Client Acquisitions

Cyient secured several notable deals during the quarter:

• A $23.00 million contract with an APAC-based communication service provider for wireless infrastructure rollout.
• Partnership with Vodafone to implement AI-powered global network visibility management solutions.

The company added 14 new client logos in Q1.

Outlook

While Cyient maintains its no-guidance policy, the company continues to focus on its medium-term target of 15.00% EBIT margins for the DET business. Cyient aims to capitalize on emerging opportunities, leveraging its strong industry mix and customer base, while maintaining delivery excellence.

With its strategic realignment and focus on technology-driven offerings, Cyient is positioning itself to strengthen its position in the engineering and technology solutions market, particularly in AI and digital transformation initiatives.

Cyient , a leading global engineering and technology solutions company, has announced significant expansions to its international operations. The company has established a new semiconductor-focused subsidiary in Singapore and opened a branch in Italy, marking important steps in its global growth strategy.

New Semiconductor Subsidiary in Singapore

Cyient has incorporated a new entity, 'Cyient Semiconductors Singapore Pte. Limited', as a wholly-owned subsidiary of Cyient Semiconductors Private Limited. This strategic move aims to strengthen Cyient's presence in the rapidly growing semiconductor industry in Southeast Asia.

The new subsidiary will focus on engineering design and consultancy activities, as well as research and experimental development in engineering. This expansion aligns with the increasing global demand for semiconductor expertise and positions Cyient to capitalize on opportunities in this critical sector.

European Expansion: New Branch in Italy

In a parallel development, Cyient Europe Limited, a wholly-owned subsidiary of Cyient, has established a new branch in Italy. This move extends Cyient's European footprint and enhances its ability to serve clients in the Italian market.

Strategic Global Growth

These expansions underscore Cyient's commitment to global growth and its strategy to enhance its presence in key markets. By establishing specialized entities and branches in strategic locations, Cyient is positioning itself to better serve its international clientele and tap into new business opportunities.

Krishna Bodanapu, Executive Vice Chairman and Managing Director of Cyient, commented on the company's recent financial performance, stating, "We have seen robust growth in our revenue from contracts with customers, which reached ₹17,118 million for the quarter ended June 30, compared to ₹16,757 million in the same quarter last year."

Financial Highlights

For the quarter ended June 30, Cyient reported:

• Revenue from contracts with customers: ₹17,118 million
• Net profit for the period (before tax and exceptional items): ₹2,136 million
• Total comprehensive income: ₹2,303 million

These financial results demonstrate Cyient's continued growth and profitability, supporting its strategic expansions in Singapore and Italy.

As Cyient continues to expand its global presence and diversify its service offerings, the company is well-positioned to leverage emerging opportunities in the engineering and technology solutions market worldwide.