Cyient DLM , a leading integrated electronics manufacturing services (EMS) provider, has announced a significant boost to its order book with new orders worth ₹4,977 million. This development comes as the company strategically positions itself for expansion in the rapidly growing electric vehicle (EV) and medical technology (MedTech) sectors.

Strategic Expansion

The company is actively pursuing growth opportunities in the EV and MedTech industries through mergers and acquisitions (M&A). These strategic moves are aimed at establishing Cyient DLM as a global leader in electronics design and manufacturing.

Financial Performance

According to the company's recent financial results:

Despite a decline in revenue, primarily due to the completion of a large order, Cyient DLM has maintained a robust EBITDA margin of 10%, showcasing operational resilience.

Order Book and Cash Flow

• Order backlog expanded to ₹22,911 million
• Free Cash Flow stood at ₹27 crores in Q2, marking four consecutive quarters of positive cash flow

Sector-wise Performance

The company reported impressive year-over-year growth in key sectors:

• Aerospace: 47% growth
• Industrial: 256% growth
• MedTech: 114% growth

These growth figures underscore Cyient DLM's successful diversification strategy and its strengthening position in high-growth sectors.

Management Commentary

Rajendra Velagapudi, MD & CEO of Cyient DLM, stated, "Our profitability has improved significantly this quarter, reflecting the disciplined execution and strategic choices we have made this year. We continue to strengthen our capabilities, expand our customer base, and build a robust pipeline."

Future Outlook

With a strong order intake and a pipeline of large deals in advanced stages, Cyient DLM is well-positioned for future growth. The company's focus on expanding its Build-to-Spec (B2S) capabilities and its strategic entry into the EV and MedTech sectors are expected to drive long-term value creation.

As Cyient DLM continues to leverage its engineering expertise and manufacturing capabilities, it is poised to capitalize on the growing demand for advanced electronics in emerging technologies and cleaner mobility solutions.

Cyient DLM , a leading integrated partner for design-led manufacturing, has reported significant financial developments in its latest results. The company recorded a gain of ₹195.75 million as other income from the fair valuation of earnout liability, positively impacting its financial performance for the quarter. Additionally, Cyient DLM reported a remarkable 130% year-over-year growth in order intake for the first half of the year.

Financial Highlights

The company's quarterly results showcase several key financial metrics:

The reported PAT saw a substantial increase due to the one-off other income gains, including the ₹195.75 million from the fair valuation of earnout liability.

Operational Performance

Cyient DLM demonstrated strong operational resilience:

• Free Cash Flow stood at ₹27 crore, marking the fourth consecutive quarter of positive cash flow.
• H1 Order Intake exceeded ₹1,000 crore, representing a 130% YoY growth.
• The company added two strategic customers in the electric mobility ecosystem.

Management Commentary

Rajendra Velagapudi, MD & CEO of Cyient DLM, stated, "Our profitability has improved significantly this quarter, reflecting the disciplined execution and strategic choices we have made this year. We continue to strengthen our capabilities, expand our customer base, and build a robust pipeline."

Strategic Developments

• Cyient DLM is diversifying its portfolio, with Box-Build solutions driving healthy contribution from global markets outside India.
• The company secured major Build-to-Spec (B2S) projects during the quarter, expected to progress into the next phase of development in the near term.
• Investments are being made to enhance B2S capabilities, integrating advanced design, testing, and certification competencies.

Future Outlook

With a strong order intake growth and a pipeline of large deals in advanced stages, Cyient DLM is positioned for future growth. The company continues to leverage its engineering expertise and manufacturing capabilities to support new-age technologies, particularly in the rapidly evolving electric mobility sector.

The fair valuation gain on earnout liability, while a one-time event, contributes to the company's improved financial position and demonstrates its ability to manage financial obligations effectively.

Investors and stakeholders will likely keep a close watch on how Cyient DLM leverages this financial boost and strong order intake growth to fuel its strategic initiatives and drive sustainable growth in the coming quarters.