Cyient Is Shifting Its Focus To End-To-End Solutions
This transition might lead to operating margins being under pressure for the next two to three years.
Engineering and information technology firm Cyient Ltd. plans to shift its focus to end-to-end solutions vertical from its pure-play services model.
The Hyderabad-headquartered company intends to increase its revenue share from solutions to 25 percent over the next three years from five percent at present, and to 80 percent over the next 10 years.
“A lot of our peers are not into end-to-end solutions, so the opportunity in solutions business is very high. Also, our customers are asking for different set of product offerings,” its President and Chief Financial Officer Ajay Aggarwal told BloombergQuint in an interaction.
He added that this transition might lead to operating margins being under pressure for the next two to three years despite high earnings growth during the period.
We would be focusing on existing customers as client growth is expected to remain subdued... about 90-95 percent of our revenue is contributed by repeat orders and 3-5 percent from new orders.Ajay Aggarwal, President and CFO, Cyient
Watch the full interaction here: