Slide 1: Cover letter to stock exchanges
CYll:NT • 21 July 2022 The BSE Limited The National Stock Exchange of India Ltd PJ Towers, 25th Floor, Exchange Plaza, Dalal Street Bandra-Kurla Complex, Bandra (E) Mumbai 400001. Mumbai-400 051. Scrip Code: 532175 Scrip Code: CYIENT Dear Sir/Madam, Sub: Investor Presentation Please find enclosed in
Slide 2: Q1 FY23 Investor Presentation
© CYIENT 2022 | Confidential Q1 FY23 INVESTOR PRESENTATION
Slide 3: Confidentiality Statement
Confidentiality Statement The information shared herein is strictly confidential, proprietary and unique to the company. It is only made and shared for the purpose and extent it is intended for and no other. Usage or sharing of the said information in any form, directly or indirectly and in any mann
Slide 4: Leadership Team
Leadership Team KRISHNA BODANAPU AJAY AGGARWAL KARTHIK NATARAJAN Managing Director & CEO Executive Director & CFO Executive Director & COO © CYIENT 2022 | Confidential 3
Slide 5: © CYIENT 2022 | Confidential
Highlights Financial Update Business Update • Revenue • BU performance update • Financial Highlights • Business Highlights • Income statement update • Margin bridge • Cash generation © CYIENT 2022 | Confidential Annexures 4
Slide 6: © CYIENT 2022 | Confidential
Highlights Financial Update Business Update • Revenue • BU performance update • Financial Highlights • Business Highlights • Income statement update • Margin bridge • Cash generation © CYIENT 2022 | Confidential Annexures 5
Slide 7: Highlights for the Quarter
Highlights for the Quarter Financial Highlights for Quarter • Group revenue at $161.6 Mn; growth of 15.8% cc YoY (12.6% in USD terms) and 4.4% cc QoQ (3.1% in USD terms) 18.1% YoY / 5.8% QoQ (INR terms) • Group revenue at ₹12,501 Mn; growth of 18.1% YoY 15.8% YoY / 4.4% QoQ (CC terms) and 5.8% QoQ R
Slide 8: Highlights for the Quarter
Highlights for the Quarter Dr. BVR Mohan Reddy, Cyient Founder First 5G IoT Chip Combining "Design in Cyient Foundation and IIT Hyderabad Chairman, inducted into the Geospatial India" and "Make in India" capabilities team up to Nurture India's Hall of Fame at the Geospatial World by Cyient, IITH and
Slide 9: M&A & Strategic Buyout Highlights for the Quarter
M&A & Strategic Buyout Highlights for the Quarter Citec Grit Consulting Celfinet • Signed a definitive agreement to • Extends the capability of Cyient • Helps Cyient strengthen its acquire Citec, an international Plant Consulting, further enabling our Wireless Engineering practice to and Product eng
Slide 10: © CYIENT 2022 | Confidential
Highlights Financial Update Business Update • Revenue • BU performance update • Financial Highlights • Business Highlights • Income statement update • Margin bridge • Cash generation © CYIENT 2022 | Confidential Annexures 9
Slide 11: Revenue for Q1 FY23
Revenue for Q1 FY23 Revenue Q1 FY23 QoQ YoY Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Revenue Group • Services growth at 18.7% cc YoY $ Mn 161.6 3.1% 12.6% 156.7 157.9 150.1 143.5 • Services growth at 6.5% cc QoQ. Investments contribution of 3.9% CC growth 4.4% 15.8% QoQ ₹ Mn 12,501 5.8% 18.1% 11,812 11,834 1
Slide 12: Hedge Book
Hedge Book Value in Respective Outstanding ForwardContracts Currency Mn. Booked Rate (in ₹) for next 12 Months Wgt.Avg 8.9 Variance of 30-Jun-22 31-Mar-22 30-Jun-21 154 2.2 7.4 152 * 136 0.0 104.6 95.7 0.6 89.8 82.4 2.5 78.9 78.9 79 75 61.8 61.2 56.7 54.2 72 30 30 30 28 28 29 7 7 7 18 18 18 USD EUR
Slide 13: Income statement for Q1 FY23
Income statement for Q1 FY23 All Figures in ₹ Mn Q1 FY23 Q4 FY22 Q1 FY22 QoQ EBIT Movement • Consolidated EBIT margin stood at 11.5%; down Revenue 12,501 11,812 10,582 by 164 bps YoY and 298 bps QoQ EBIT (Reported) 1,435 1,708 1,388 • Services EBIT margin at 12.8%; down by 179 bps PAT (Reported) 1,1
Slide 14: EBIT Margin Bridge for Q1 FY23
EBIT Margin Bridge for Q1 FY23 Particulars EBIT Q4 FY22 (Group) 14.5% • Drop in utilization is a one-off Add: DLM impact 93 bps due to significant investment in people pipeline and will improve EBIT Q4 FY22 (Services) 15.4% going forward Tailwinds in Q1 FY23 • Impact of merit increase is 153 Favorab
Slide 15: Cash Generation for Q1 FY23
Cash Generation for Q1 FY23 All Figures in ₹ Mn Q1 FY23 Q4 FY22 Q1 FY22 Cash Generation Services • Cash and cash equivalents, including long- Profit before tax 1,496 1,884 1,466 term treasury investments, at ₹13,749 Mn (~$174 Mn) at the end of Q1FY23 compared (+/-) Non-cash & non-operating items 553
Slide 16: © CYIENT 2022 | Confidential
Highlights Financial Update Business Update • Revenue • BU performance update • Financial Highlights • Business Highlights • Income statement update • Margin bridge • Cash generation © CYIENT 2022 | Confidential Annexures 15
Slide 17: New GTM Organisation Structure
New GTM Organisation Structure COO BU Head Cluster Head Cluster Head HiTech ARC MEU BU Head Healthcare & Aerospace & Mining Lifesciences Defense New Growth Areas Energy BU Head Rail Automotive & Transportation Utilities Mobility BU Head Communications Semicon © CYIENT 2022 | Confidential Key focus a
Slide 18: BU Performance Q1 FY23 (New Structure)
BU Performance Q1 FY23 (New Structure) Revenue $ Mn Q1 FY23 QoQ YoY • Services growth stood at 5.0% QoQ and 6.5% in cc QoQ ARC 86.7 2.5% 5.6% o ARC witnessed growth of 2.5% QoQ Aerospace 33.3 0.2% 8.9% o MEU witnessed de-growth of 7.9% QoQ Rail transportation 12.4 -10.5% -22.5% o New Growth Areas wi
Slide 19: Business Units Performance Q1 FY23 (Old Structure)
Business Units Performance Q1 FY23 (Old Structure) Revenue $ Mn Q1 FY23 QoQ YoY Transportation 45.8 -2.9% -1.9% Aerospace 33.3 0.2% 8.9% Rail transportation 12.4 -10.5% -22.5% C&U 49.0 3.9% 13.2% Communications 41.0 9.2% 15.3% Utilities 8.0 -16.6% 3.3% Portfolio 37.2 2.5% 26.9% Grit Consulting 3.7 -
Slide 20: Business Performance & Outlook
BUSINESS PERFORMANCE & OUTLOOK © CYIENT 2021 | Confidential 19
Slide 21: Business Performance & Outlook (1/3)
Business Performance & Outlook (1/3) ARC Aerospace: Global travel is estimated to pick up and we expect business to recover by mid to end of this fiscal year. North America Aero OEM may continue to struggle, but focus will be on electrification, urban air mobility and space & defence. New technologi
Slide 22: Business Performance & Outlook (2/3)
Business Performance & Outlook (2/3) MEU Mining: Growth is lead by sustainable mining, driven by regulatory needs and market demand. Transition to renewable & clean energy sources would require minerals like like copper, nickel and new materials. We are rightly positioned to harness the opportunitie
Slide 23: Business Performance & Outlook (3/3)
Business Performance & Outlook (3/3) HiTech: We will leverage our experience to provide digital and technology solutions to Tech Companies for Location Based Services, Earth & Space Observation and System Integration projects. We are focusing on adjacencies across the enterprise including Mining, Co
Slide 24: Innovative Technology Solutions and Programs
Innovative Technology Solutions and Programs Trends Technology Solutions / Programs L2CYSMART: Legacy to Smart Machines: An industry agnostic solution for augmenting legacy industrial machines into smart machines leveraging our IIoT capabilities, Non-invasive sensors, Cyient Edge Gateways & Image An
Slide 25: Outlook for FY23
Outlook for FY23 Revenue EBIT Margin Others • We will grow in the range of • We expect the full year • In FY23 ETR is expected to 13% – 15% in FY23 in margins to be in the range be around 27% constant currency for the of 13% to 14% • FCF is expected to be in line Group for the full year • We have vi
Slide 26: About Cyient
About Cyient Cyient (Estd: 1991, NSE: CYIENT) is a global engineering and technology solutions company. As a Design, Build, and Maintain partner for leading organizations worldwide, Cyient takes solution ownership across the value chain to help customers focus on their core, innovate, and stay ahead
Slide 27: Disclaimer
Disclaimer All the references to Cyient’s financial results in this update pertain to the company’s consolidated operations comprising: Wholly-owned and step down subsidiaries: Cyient Europe Limited; Cyient Inc.; Cyient GmbH; Cyient Australia Pty Ltd; Cyient Singapore Private Limited; Cyient KK; Cyi
Slide 28: Connect With Us
#DesigningTomorrowTogether Connect cyient.com With Us Follow us on © CYIENT 2021 | Confidential
Slide 29: Annexure Q1 FY23
INVESTOR PRESENTATION © CYIENT 2022 | Confidential Annexure Q1 FY23
Slide 30: Message from the Management
Message from the Management Commenting on the results, Mr. Krishna Bodanapu, Managing Director and Chief Executive Officer, said “Cyient recorded a revenue of $161.6 Mn for Q1 FY 23, a growth of 4.4% QoQ and 15.8% YoY in constant currency, the growth in the business was driven by Mining, Medical Tec
Slide 31: Message from the Management
Message from the Management Commenting on the results, Mr. Ajay Aggarwal, Executive Director & CFO, said, “I am pleased to share that our strategy on accelerating earnings growth through investments and better capital allocation is playing out well with critical strategic investments in Q1FY23. This
Slide 32: Consolidated Financial Metrics
Consolidated Financial Metrics Growth % ₹ Mn Q1 FY23 Q4 FY22 Q1 FY22 QoQ YoY Revenue 12,501 11,812 10,582 5.8% 18.1% EBIT 1,435 1,708 1,388 -16.0% 3.4% EBIT margin 11.5% 14.5% 13.1% -298 bps -164 bps PAT 1,161 1,542 1,150 -24.7% 0.9% Foreign Exchange Rate $/₹ Q1 FY23 Q4 FY22 Q1 FY22 FY22 FY21 Averag
Slide 33: Consolidated Revenue Segmentation
Consolidated Revenue Segmentation By Geography (%) Particulars Q1 FY23 Q4 FY22 Q1 FY22 Americas 51.3% 53.5% 47.9% Europe, Middle East, Africa 22.7% 24.6% 28.4% Asia Pacific (includes India) 26.0% 22.0% 23.7% By Business Unit (%) (New Structure) By Business Unit (%) (Old Structure) Particulars Q1 FY2
Slide 34: Consolidated Operations Metrics
Consolidated Operations Metrics Account Receivables (in Days) Particulars Q1 FY23 Q4 FY22 Q1 FY22 DSO Total 88 78 90 - Billed 59 55 67 - Unbilled 29 23 23 Order Intake ($ Mn)^ Particulars Q1 FY23 Q4 FY22 Q1 FY22 Cyient Services 141 188 120 DLM 24 22 20 Group OI Total 165 210 140 ^The Order Intake re
Slide 35: Consolidated Client Metrics
Consolidated Client Metrics Top Clients: Revenue Contribution (%) Particulars Q1 FY23 Q4 FY22 Q1 FY22 Top 5 27.7% 26.5% 31.9% Top 10 39.3% 39.1% 43.3% Note: There was an error in Q4FY22 top 10 customer contribution % which is rectified now No. of Million $ Clients Particulars Q1 FY23 Q4 FY22 Q1 FY22
Slide 36: Consolidated Employee Metrics
Consolidated Employee Metrics Employee Particulars Q1 FY23 Q4 FY22 Q1 FY22 Total Headcount 14,147 13,428 12,433 Technical & Pool 13,165 12,380 11,495 Non-Technical 473 446 350 Support 509 602 588 Voluntary Attrition (LTM)* 27.9% 26.2% 16.7% * Attrition is reported on LTM basis from Q1FY23. This is i
Slide 37: Consolidated Other Financial Metrics
Consolidated Other Financial Metrics Cash Position (₹ Mn) Particulars Q1 FY23 Q4 FY22 Q1 FY22 Cash & Cash Equivalent including treasury 13,749 15,689 15,262 investments Cash & Bank balances 4,211 4,413 6,726 Investments in FDs 6,574 8,253 8,536 Investment in MFs 864 704 0 Treasury investments 2,100
Slide 38: Consolidated Income Statement
Consolidated Income Statement Income Statement ₹ Mn Q1 FY23 Q4 FY22 Q1 FY22 Operating Revenue 12,501 11,812 10,582 Cost of Revenue 7,901 7,293 6,783 Direct Salary and related costs 4,989 4,558 4,264 Direct Travel 136 95 79 Delivery Management 257 249 222 Material cost 1,459 1,359 1,234 Other costs i
Slide 39: Extract of Consolidated Balance Sheet
Extract of Consolidated Balance Sheet Balance Sheet ₹ Mn Q1FY23 Q4FY22 Q1 FY22 EQUITY AND LIABILITIES Shareholders’ funds - Share capital 552 552 548 - Reserves and surplus 30,318 30,582 27,930 Total - Shareholders' funds 30,870 31,134 28,478 Non-current liabilities - Long-term borrowings and liabil
Slide 40: Consolidated Cash Flow Movement
Consolidated Cash Flow Movement ₹ Mn Q1 FY23 Q4 FY22 Q1 FY22 Free cash flow from operations 596 1,225 848 Investment in non current investments 191 142 0 Settlement of purchase/deferred consideration consideration pertaining to (4,063) (0) (45) new/prior year acquisitions Interest received 100 75 97
Slide 41: Other Income
Other Income All Figures in ₹ Mn Q1FY23 Q4 FY22 Q1 FY22 For the quarter Income from Treasury • Treasury income is lower due to decrease in Interest on Investments/Deposits 91 134 133 average invested cash on account of acquisition Dividend on Mutual Funds 4 4 0 funding and dividend payout Subtotal (
Slide 42: Cyient Metrics (Services)
© CYIENT 2022 | Confidential (Services) Cyient Metrics 14
Slide 43: Cyient Metrics (Services) (1/3)
Cyient Metrics (Services) (1/3) By Geography (%) Onsite/offshore Split (%)* Particulars Q1 FY23 Q4 FY22 Q1 FY22 Particulars Q1 FY23 Q4 FY22 Q1 FY22 Americas 53.0% 55.5% 52.0% Onsite 50.0% 48.4% 52.7% Europe, Middle East, Africa 21.8% 25.9% 27.6% Offshore 50.0% 51.6% 47.3% Asia Pacific (including Ind
Slide 44: Cyient Metrics (Services) (2/3)
Cyient Metrics (Services) (2/3) Currency Mix (%) Q1 FY23 Q4 FY22 Q1 FY22 USD 52.9% 52.2% 50.1% EURO 10.3% 11.1% 13.5% GBP 8.0% 9.6% 9.2% AUD 12.9% 11.2% 14.6% Others 16.0% 15.9% 12.7% Utilization (%) Q1 FY23 Q4 FY22 Q1 FY22 Utilization 80.9% 86.1% 83.1% Account Receivables (in Days) © CYIENT 2022 |
Slide 45: Cyient Metrics (Services) (3/3)
Cyient Metrics (Services) (3/3) Top Clients: Revenue Contribution (%) Q1 FY23 Q4 FY22 Q1 FY22 Top 5 32.1% 30.6% 36.9% Top 10 43.6% 42.6% 49.2% No. of Million $ Clients Q1 FY23 Q4 FY22 Q1 FY22 20 Mn+ 4 3 3 10 Mn+ 11 11 10 5 Mn+ 25 25 23 1 Mn+ 81 78 74 New Clients Added 8 16 10 Employee © CYIENT 2022
Slide 46: Cyient Metrics (Design Led Manufacturing)
Cyient Metrics (Design Led Manufacturing) © CYIENT 2022 | Confidential 18
Slide 47: Cyient Metrics (Design Led Manufacturing) (1/3)
Cyient Metrics (Design Led Manufacturing) (1/3) Income Statement - Abridged (In ₹ Mn) Q1 FY23 Q4 FY22 Q1 FY22 Net Revenue 1,897 1,977 1,786 Direct Salaries & other costs 238 260 285 Material Cost 1,459 1,355 1,234 Gross Profit 200 362 267 SG&A 52 108 94 Depreciation & amortisation 69 60 66 EBIT 80 1
Slide 48: Cyient Metrics (Design Led Manufacturing) (2/3)
Cyient Metrics (Design Led Manufacturing) (2/3) By Business Unit (%) (New Structure) By Business Unit (%) (Old Structure) Particulars Q1 FY23 Q4 FY22 Q1 FY22 Q1 FY23 Q4 FY22 Q1 FY22 ARC total 67.1% 64.9% 65.7% Transportation total 66.9% 64.9% 65.6% Aerospace 65.5% 64.0% 62.6% Aerospace 65.5% 64.0% 6
Slide 49: Cyient Metrics (Design Led Manufacturing) (3/3)
Cyient Metrics (Design Led Manufacturing) (3/3) No. of Million $ Clients Q1 FY23 Q4 FY22 Q1 FY22 5 Mn+ 7 9 7 2 Mn+ 11 11 11 1 Mn+ 13 15 15 New Clients Added 0 0 0 Key Operational Metrics Q1 FY23 Q4 FY22 Q1 FY22 Headcount 567 594 607 DSO (in Days) 85 73 112 DPO (in Days) 65 68 91 © CYIENT 2022 | Conf
Slide 50: About Cyient
About Cyient Cyient (Estd: 1991, NSE: CYIENT) is a global engineering and technology solutions company. As a Design, Build, and Maintain partner for leading organizations worldwide, Cyient takes solution ownership across the value chain to help customers focus on their core, innovate, and stay ahead
Slide 51: Disclaimer
Disclaimer All the references to Cyient’s financial results in this update pertain to the company’s consolidated operations comprising: Wholly-owned and step down subsidiaries: Cyient Europe Limited; Cyient Inc.; Cyient GmbH; Cyient Australia Pty Ltd; Cyient Singapore Private Limited; Cyient KK; Cyi
Slide 52: Connect With Us
#DesigningTomorrowTogether Connect cyient.com With Us Follow us on © CYIENT 2022 | Confidential