Cyient Q1 Review - Value Buy In An Overheated Small Cap Universe: ICICI Securities

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Cyient Q1 Review - Value Buy In An Overheated Small Cap Universe: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Cyient Ltd.'s revenue was marginally ahead of our estimates.

Services segment remained stable while design-led manufacturing (down 20% QoQ, U.S. dollar) witnessed a sharp drop led by seasonality.

Within services, aerospace, communications and utilities verticals grew in the range of 2-4.4% QoQ (U.S. dollar).

Services’ Ebit margin expanded 100 basis points QoQ - led by operational optimisation and lower selling, general and administrative spends.

However, negative operating leverage at design-led manufacturing remained a drag on overall margins.

While Cyient's Q1 FY22 growth in services was impacted due to Covid-19 second wave, FY22 growth and margin outlook remained upbeat.

Order intake (services) increased ~22% YoY.

Click on the attachment to read the full report:

ICICI Securities Cyient Q1FY22 Results Update.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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