Slide 1: Cyient filing letter to BSE and NSE
CYIENT 14 October 2021 The BSE Limited The National Stock Exchange of India Ltd PJ Towers Exchange Plaza, Dalal Street Bandra-Kurla Complex, Bandra (E) Mumbai 400001 Mumbai-400 051 Scrip Code: 532175 Scrip Code: CYIENT Dear Sir, Sub: Investor Presentation Please find enclosed investor Presentation i
Slide 2: Q2 FY22 Investor Presentation
© CYIENT 2021 | Confidential Q2 FY22 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 2021 | Confidential 3
Slide 5: Highlights, Financial Update, Business Update
Highlights Financial Update Business Update • Revenue • BU performance update • Financial Highlights • Business Highlights • Income statement update • Margin bridge • Cash generation © CYIENT 2021 | Confidential Annexures 4
Slide 6: Highlights, Financial Update, Business Update
Highlights Financial Update Business Update • Revenue • BU performance update • Financial Highlights • Business Highlights • Income statement update • Margin bridge • Cash generation © CYIENT 2021 | Confidential Annexures 5
Slide 7: Highlights for the Quarter
Highlights for the Quarter Financial Highlights for Quarter 10.8% YoY / 5.1% QoQ (₹ terms) • Group revenue at $150.1 Mn; growth of 11.2% 11.2% YoY / 4.6% QoQ ($ terms) YoY and 4.6% QoQ (5.6% in CC) Revenue Quarterly revenue at $150.1Mn/₹11,116Mn • Services revenue at $124.6 Mn; growth of 9.2% YoY an
Slide 8: Highlights for the Quarter (1/3)
Highlights for the Quarter (1/3) Cyient Strengthens its Digital Solutions Digital Solutions portfolio for the Suite, IntelliCyient, through the Aerospace industry - PPAP4Aero Acquisition of WorkForce Delta • PPAP4Aero is a global AS9145 Supplier PPAP • WorkForce Delta, is a consulting company with C
Slide 9: Highlights for the Quarter (2/3)
Highlights for the Quarter (2/3) Enhancement of Additive Select Tier Status in the Cyient Joins TM Forum to Manufacturing Solutions AWS Partner Network collaborate with global with Implementation of • Recognized by Amazon Web Communication Service SLM®280 System in Services (AWS) as a Select-Tier Pr
Slide 10: Highlights for the Quarter (3/3)
Highlights for the Quarter (3/3) Key appointment – Strengthening the Senior Management Team Rajaneesh Kini - Senior Vice President and Chief Technology Officer • Will lead Technology Development at Cyient and will be responsible for shaping the company's technological vision, building competitive, r
Slide 11: Highlights, Financial Update, Business Update
Highlights Financial Update Business Update • Revenue • BU performance update • Financial Highlights • Business Highlights • Income statement update • Margin bridge • Cash generation © CYIENT 2021 | Confidential Annexures 10
Slide 12: Revenue for Q2 FY22
Revenue for Q2 FY22 Revenue Q2 FY22 QoQ YoY Q1 FY22 Q4 FY21 Q3 FY21 Q2 FY21 Group $ Mn 150.1 4.6% 11.2% 143.5 149.9 141.4 135.0 • Services growth stood at 9.2% ₹ Mn 11,116 5.1% 10.8% 10,582 10,932 10,443 10,033 YoY Services • DLM growth stood at 22.3% YoY $ Mn 124.6 4.5% 9.2% 119.3 119.6 115.3 114.1
Slide 13: Income statement for Q2 FY22
Income statement for Q2 FY22 QoQ EBIT Movement All Figures in ₹ Mn Q2 FY22 Q1 FY22 Q2 FY21 • Consolidated EBIT margin stood at 14.0%; higher by Revenue 11,116 10,582 10,033 301 bps YoY and by 90 bps QoQ EBIT (Reported) 1,558 1,388 1,105 • Services EBIT margin is highest ever in the last seven PAT (R
Slide 14: EBIT Margin Bridge for Q2 FY22
EBIT Margin Bridge for Q2 FY22 Particulars EBIT Q1 FY22 (Group) 13.1% Add: DLM impact 146 bps EBIT Q1 FY22 (Services) 14.6% Tailwinds in Q2 FY22 Improvements in operational metrics 155 bps Change in revenue mix 110 bps Additional optimisation levers * 110 bps WFD acquisition 37 bps Headwinds in Q2 F
Slide 15: Cash Generation for Q2FY22
Cash Generation for Q2FY22 All Figures in ₹ Mn Q2 FY22 Q1FY22 Q2 FY21 Services Cash Generation Profit before tax 1,502 1,466 1,103 • Cash and cash equivalents at healthy level of (+/-) Non-cash & non-operating items 403 288 388 ₹14,033 Mn Operating profit before WC changes 1,905 1,754 1,492 • In Q2,
Slide 16: Highlights, Financial Update, Business Update
Highlights Financial Update Business Update • Revenue • BU performance update • Financial Highlights • Business Highlights • Income statement update • Margin bridge • Cash generation © CYIENT 2021 | Confidential Annexures 15
Slide 17: BU Performance Q2 FY22
BU Performance Q2 FY22 Business Units $ Mn Q2 FY22 QoQ YoY Transportation 47.9 2.6% 1.3% • Services growth stood at 4.5% QoQ and 5.5% in cc Aerospace 32.2 4.0% 4.0% o Aerospace witnessed sequential growth of 4.0% Rail transportation 15.7 0.0% -3.6% o Growth in the Portfolio and Utilities was partial
Slide 18: Business Performance & Outlook
BUSINESS PERFORMANCE & OUTLOOK © CYIENT 2021 | Confidential 17
Slide 19: Business Performance & Outlook (1/3)
Business Performance & Outlook (1/3) Communications and Utilities Communications: We continue to see opportunities in communications due to the following factors: • Increasing investments in broadband networks across the globe, especially in NAM and Europe • Increasing focus on technology led transf
Slide 20: Business Performance & Outlook (2/3)
Business Performance & Outlook (2/3) Transportation Aerospace sector is starting to show recovery and rail transportation was flat QoQ. The growth in aerospace is coming in the backdrop of increased business in key accounts and is led by digital and embedded initiatives. The highlights have been win
Slide 21: Business Performance & Outlook (3/3)
Business Performance & Outlook (3/3) Portfolio of Services Automotive and Off Highway witnessed growth in this quarter due to proactive corrections. The outlook for this sector for H2 FY22 remains positive as we continue to ramp up on recent contracts while strengthening our pipeline in all geograph
Slide 22: Outlook for FY22
Outlook for FY22 Revenue EBIT Margin Others • We continue to expect to • We expect the full year • Other income for the year grow double digit in FY22 margins to improve by is in line with the previous with growth continuing in 250 to 300 bps as year Q3 FY22 compared to a 200 bps • We maintain that
Slide 23: 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 24: 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 25: Connect With Us
#DesigningTomorrowTogether Connect cyient.com With Us Follow us on © CYIENT 2021 | Confidential
Slide 26: Annexure
INVESTOR PRESENTATION © CYIENT 2021 | Confidential Annexure Q2 FY22
Slide 27: Message from the Management
Message from the Management Commenting on the results, Mr. Krishna Bodanapu, Managing Director and Chief Executive Officer, said “Our Q2 performance has been encouraging and in line with our expectations. We recorded a revenue of $150.1 Mn a growth of 11.2 % YoY and 4.6% QoQ. Our services business w
Slide 28: Message from the Management
Message from the Management Commenting on the results, Mr. Ajay Aggarwal, President & CFO, said, I am pleased to share that our sustained focus on margin expansion through improvement in efficiencies and operating budget levers yielded results with EBIT margin for the quarter at 14.0% (growth of 301
Slide 29: Consolidated Financial Metrics
Consolidated Financial Metrics Growth % ₹ Mn Q2 FY22 Q1 FY22 Q2 FY21 QoQ YoY Revenue 11,116 10,582 10,033 5.1% 10.8% Reported EBIT 1,558 1,388 1,105 12.2% 41.1% Reported EBIT margin 14.0% 13.1% 11.0% 90 bps 301 bps Reported PAT 1,213 1,150 839 5.5% 44.7% Foreign Exchange Rate $/₹ Q2 FY22 Q1 FY22 Q2
Slide 30: Consolidated Revenue Segmentation
Consolidated Revenue Segmentation By Geography (%) Q2 FY22 Q1 FY22 Q2 FY21 Americas 48.8% 47.9% 50.1% Europe, Middle East, Africa 24.8% 28.4% 28.9% Asia Pacific (includes India) 26.4% 23.7% 21.1% By Business Unit (%) Q2 FY22 Q1 FY22 Q2 FY21 Transportation total 43.0% 43.6% 43.8% Aerospace 32.1% 32.1
Slide 31: Consolidated Operations Metrics
Consolidated Operations Metrics Account Receivables (in Days) Q2 FY22 Q1 FY22 Q2 FY21 DSO Total 81 90 90 - Billed 60 67 64 - Unbilled 21 23 26 Order Intake ($ Mn)^ Particulars Q2 FY22 Q1 FY22 Q2 FY21 Cyient Services 123 120 112 DLM 33 20 15 Group OI Total 156 140 127 ^The Order Intake reported is th
Slide 32: Consolidated Client Metrics
Consolidated Client Metrics Top Clients: Revenue Contribution (%) Q2 FY22 Q1 FY22 Q2 FY21 Top 5 31.7% 31.9% 29.5% Top 10 43.2% 43.3% 38.4% No. of Million $ Clients Q2 FY22 Q1 FY22 Q2 FY21 20 Mn+ 3 3 3 10 Mn+ 10 10 7 5 Mn+ 32 30 32 1 Mn+ 92 89 96 © CYIENT 2021 | Confidential New Clients Added 18 10 1
Slide 33: Consolidated Employee Metrics
Consolidated Employee Metrics Employee Q2 FY22 Q1 FY22 Q2 FY21 Total Headcount 12,707 12,433 12,267 Technical & Pool 11,763 11,495 11,335 Non-Technical 330 350 310 Support 614 588 622 Voluntary Attrition 24.3% 23.5% 9.2% © CYIENT 2021 | Confidential 8
Slide 34: Consolidated Other Financial Metrics
Consolidated Other Financial Metrics Cash Position (₹ Mn) Q2 FY22 Q1 FY22 Q2 FY21 Cash & Cash Equivalent 14,033 15,262 13,509 Cash & Bank balances 5,846 6,726 4,680 Investments in FDs 8,187 8,536 8,829 Capex (₹ Mn) Q2 FY22 Q1 FY22 Q2 FY21 Capital Expenditure 141 214 120 © CYIENT 2021 | Confidential
Slide 35: Consolidated Income Statement
Consolidated Income Statement Income Statement ₹ Mn Q2 FY22 Q1 FY22 Q2 FY21 Operating Revenue 11,116 10,582 10,033 Cost of Revenue 6,844 6,783 6,449 Direct Salary and related costs 4,284 4,264 4,075 Direct Travel 85 79 97 Delivery Management 221 222 249 Material cost 1,332 1,234 1,074 Other costs in
Slide 36: Consolidated Balance Sheet
Consolidated Balance Sheet Balance Sheet ₹ Mn Q2 FY22 Q1 FY22 Q2FY21 EQUITY AND LIABILITIES Shareholders’ funds - Share capital 551 548 550 - Reserves and surplus 28,698 27,930 26,841 Total - Shareholders' funds 29,249 28,478 27,391 Non-current liabilities - Long-term borrowings and liabilities 2,43
Slide 37: Consolidated Cash Flow Movement
Consolidated Cash Flow Movement ₹ Mn Q2 FY22 Q1 FY22 Q2 FY21 Free cash flow from operations 2,050 848 2,032 Investment in non current investments (374) 0 (15) Settlement of deferred consideration (180) (45) 0 pertaining to prior year acquisitions Interest received 212 97 132 Finance costs paid (34)
Slide 38: Other Income
Other Income All Figures in ₹ Mn Q2 FY22 Q1 FY22 Q2 FY21 For the quarter Income from Treasury • Other income is lower by ₹23 Mn (down by Interest on Invesmtents/Deposits 110 133 115 17.2% QoQ) mainly on account of lower Subtotal (A) 110 133 115 Realised gains/(losses) on Fwd Contracts (B) 89 42 (66)
Slide 39: Hedge Book
Hedge Book Value in Respective Outstanding ForwardContracts* Currency Mn. Booked Rate (in ₹) for next 12 Months 6.3 Wgt.Avg 30-Sep-21 30-Jun-21 30-Sep-20 6.3 Variance of 3.9 154 153 2.6 106.2 144 99.9 92.6 86.3 2.7 76.9 74.4 4.6 61.0 58.3 58.1 72 72 69 53.5 31 30 29 28 29 28 19 18 17 7 7 7 USD EUR G
Slide 40: Cyient Metrics (Excluding Design Led Manufacturing)
Cyient Metrics (Excluding Design Led Manufacturing) © CYIENT 2021 | Confidential 15
Slide 41: Cyient Metrics (Excluding DLM) (1/3)
Cyient Metrics (Excluding Design Led Manufacturing) (1/3) By Geography (%) Q2 FY22 Q1 FY22 Q2 FY21 Americas 52.8% 52.0% 53.4% Europe, Middle East, Africa 27.5% 27.6% 28.7% Asia Pacific (including India) 19.7% 20.5% 17.8% By Business Unit (%) Q2 FY22 Q1 FY22 Q2 FY21 Transportation total 38.4% 39.1% 4
Slide 42: Cyient Metrics (Excluding DLM) (2/3)
Cyient Metrics (Excluding Design Led Manufacturing) (2/3) Currency Mix (%) Q2 FY22 Q1 FY22 Q2 FY21 USD 50.8% 50.1% 53.3% EURO 13.1% 13.5% 10.0% GBP 9.4% 9.2% 9.8% AUD 13.4% 14.6% 12.6% Others 13.4% 12.7% 14.4% Utilization (%) Q2 FY22 Q1 FY22 Q2 FY21 Utilization 85.0% 83.1% 78.8% Account Receivables
Slide 43: Cyient Metrics (Excluding DLM) (3/3)
Cyient Metrics (Excluding Design Led Manufacturing) (3/3) Top Clients: Revenue Contribution (%) Q2 FY22 Q1 FY22 Q2 FY21 Top 5 33.0% 36.9% 34.8% Top 10 45.6% 49.2% 45.4% No. of Million $ Clients Q2 FY22 Q1 FY22 Q2 FY21 20 Mn+ 3 3 3 10 Mn+ 10 10 7 5 Mn+ 24 23 27 1 Mn+ 76 74 85 New Clients Added 17 10
Slide 44: Cyient Metrics (Design Led Manufacturing)
Cyient Metrics (Design Led Manufacturing) © CYIENT 2021 | Confidential 19
Slide 45: Cyient Metrics (Design Led Manufacturing) (1/3)
Cyient Metrics (Design Led Manufacturing) (1/3) Income Statement - Abridged (In ₹ Mn) Q2 FY22 Q1 FY22 Q2 FY21 Net Revenue 1,888 1,786 1,546 Direct Salaries & other costs 278 285 262 Material Cost 1,330 1,234 1,076 Gross Profit 280 267 209 SG&A 85 95 76 Depreciation & amortisation 67 66 60 EBIT 129 1
Slide 46: Cyient Metrics (Design Led Manufacturing) (2/3)
Cyient Metrics (Design Led Manufacturing) (2/3) By Business Unit (%) Q2 FY22 Q1 FY22 Q2 FY21 Transportation total 65.3% 65.6% 56.8% Aerospace 63.0% 62.4% 56.4% Rail transportation 2.3% 3.2% 0.4% C&U total 0.2% 0.4% 6.8% Communications 0.2% 0.4% 0.3% Utilities 0.0% 0.0% 6.5% Portfolio total 34.5% 34.
Slide 47: Cyient Metrics (Design Led Manufacturing) (3/3)
Cyient Metrics (Design Led Manufacturing) (3/3) No. of Million $ Clients Q2 FY22 Q1 FY22 Q2 FY21 5 Mn+ 8 7 5 2 Mn+ 12 11 11 1 Mn+ 16 15 11 New Clients Added 1 0 0 Key Operational Metrics Q2 FY22 Q1 FY22 Q2 FY21 Headcount 672 607 628 DSO (in Days) 91 112 60 DPO (in Days) 111 91 81 © CYIENT 2021 | Con
Slide 48: 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 49: 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 50: Connect With Us
#DesigningTomorrowTogether Connect cyient.com With Us Follow us on © CYIENT 2021 | Confidential