Cyient Limited · NSE:CYIENT
Cyient — Q1 2018 Earnings Presentation
20 slides from Cyient's earnings presentation, Jul 13, 2017
Slide 1: First Quarter results for FY 2018 - Key Highlights
First Quarter results for FY 2018 Financial Release, Hyderabad, India, July 13, 2017 – YoY revenue growth of 12.8% in US$ terms (US$141Mn) – YoY Net profit growth of 18.7%; at ₹878 Mn www.cyient.com/investors – Services revenue YoY growth 12.4% and QoQ growth 3.2%; at US$129 Mn: highest ever – Cash
Slide 2: Table of Contents
Table of Contents Message from the Management 4 Financial Performance Highlights 5 Business Update 6-7 Operational Highlights 8 www.cyient.com/investors Service Business 9 Revenue Segmentation 10 Operational Metrics 11 Client Metrics 11 Employee Metrics 12 Design- Led Manufacturing Business 13 Incom
Slide 3: Message from the Management
Message from the Management Commenting on the results, Mr. Krishna Bodanapu, Managing Director and Chief Executive Officer, said, “Q1 FY18 was in line with our expectations both on revenue and margin. We recorded a revenue of $140.6 Mn in the quarter an increase of 12.8% YoY and a decrease of 0.2% Q
Slide 4: Financial Performance Highlights
Financial Performance Highlights In ₹ Million Growth % Q1 FY18 Q4 FY17 Q1 FY17 QoQ YoY Revenue 9,070 9,410 8,349 -3.6% 8.6% Operating Profit 1,160 1,247 1,090 -7.0% 6.5% Operating Margin 12.8% 13.3% 13.1% www.cyient.com/investors PAT (Reported) 878 784 740 12.0% 18.7% PAT (Adjusted)* 878 1,046 740 -
Slide 5: Business Update
Business Update Aerospace & Defense Aerospace & Defense business unit witnessed a growth of 2.1% YoY and 1.7% QoQ. After 3 years of softness, we saw momentum coming back in EMEA with some new wins. We are following through on our Design-Build-Maintain strategy and completed the Qualification testing
Slide 6: Business Update: Industrial, Energy and Natural Resources; Semiconductor
Industrial, Energy and Natural Resources The Industrial, Energy and Natural Resources business unit witnessed a degrowth of 4.9%YoY and 0.1% QoQ due to weak industry outlook and performance of some of our key clients. The demand continues to be soft through the year. To drive growth in this segment,
Slide 7: Operational Highlights
Operational Highlights CSR Activities Adopted 9 Government Schools; supporting underprivileged children taking the total to 25 Girl child enrolment in Cyient adopted schools at 54% www.cyient.com/investors Added 8 Cyient Digital Centres providing digital educational resources taking the total
Slide 8: Cyient (Excluding Design-led Manufacturing business)
8 Investor Update Q1, FY18 Cyient Limited www.cyient.com/investors Cyient business) (Excluding Design- led Manufacturing
Slide 9: Revenue Segmentation
Revenue Segmentation By Geography (%) Q1 FY18 Q4 FY17 Q1 FY17 Americas 55.8% 57.1% 60.0% EMEA 26.6% 25.1% 24.6% Asia Pacific 17.6% 17.8% 15.4% www.cyient.com/investors By Business Unit (%) Q1 FY18 Q4 FY17 Q1 FY17 Aerospace and Defense 35.2% 35.7% 38.7% Transportation 10.5% 9.7% 10.3% I&ENR 8.5% 8.7%
Slide 10: Operational Metrics and Client Metrics
Operational Metrics Utilization (%) Q1 FY18 Q4 FY17 Q1 FY17 Utilization 74.1% 77.4% 73.5% Adjusted Utilization * 74.1% 75.4% 71.5% *In order to further improve efficiency and productivity in organization, beginning this quarter, we have started including paid www.cyient.com/investors overtime and we
Slide 11: Employee Metrics
Employee Metrics 30-Jun-17 31-Mar-17 30-Jun-16 Total Manpower 13,206 13,084 12,965 Technical & Pool 12,201 12,048 12,082 Non Technical 215 231 191 Support 790 805 692 www.cyient.com/investors Voluntary Attrition 16.6% 15.6% 19.9% Involuntary Attrition 1.9% 3.9% 3.1% The impact of the positive measur
Slide 12: Design-Led Manufacturing Business
12 Investor Update Q1, FY18 Cyient Limited www.cyient.com/investors Business Design-Led manufacturing
Slide 13: Income Statement - Abridged (DLM)
Income Statement - Abridged ( Million) Q1 FY18 Q4 FY17 Q1 FY17 Revenue 763 1,069 676 Direct Salaries & other costs 43 43 53 Material Cost 678 921 591 Gross Profit 43 106 32 www.cyient.com/investors SG&A 95 108 81 Operating Profit -53 -2 -49 Other Charges 39 34 43 Profit Before Tax -92 -36 -92 Revenu
Slide 14: DLM Currency Mix and Key Operational Metrics
Currency Mix (%) Q1 FY18 Q4 FY17 Q1 FY17 USD 38.6% 22.9% 34.2% Euro 1.4% 2.5% 0.2% Others 60.0% 74.6% 65.6% No. of Million Dollar Clients (in Number) www.cyient.com/investors Q1 FY18 Q4 FY17 Q1 FY17 5 Mn+ 4 4 3 2 Mn+ 6 6 6 1 Mn+ 10 9 8 New Customers Added 1 2 1 Key Operational Metrics 30-Jun-17 31-M
Slide 15: Consolidated Financials
15 Investor Update Q1, FY18 Cyient Limited www.cyient.com/investors Financials Consolidated
Slide 16: Consolidated Income Statement for Q1 FY18
DETAILED FINANCIALS Consolidated Income Statement for Q1 FY18 (₹ Million) Q1 FY18 Q4 FY17 Q1 FY17 Operating Revenue 9,070 9,410 8,349 Cost of Revenue 5,904 6,179 5,425 Direct Salary and related costs 4,167 4,094 3,945 Direct Travel 189 220 206 www.cyient.com/investors Sub contract and others 719 811
Slide 17: Order Intake, Other Income, Capex and Cash Position
Order Intake Details ($ Mn) Order Intake (OI) Q1 FY18 Q4 FY17 Q1 FY17 Cyient Services (Executable in the Current FY) 127.6 68.7 124.9 Cyient Services (Executable after the Current FY) 2.7 116.9 8.1 Cyient Services Total OI 130.3 185.6 133.0 DLM (Executable in the Current FY) 25.9 0.7 12.3 DLM (Execu
Slide 18: Consolidated Balance Sheet
Consolidated Balance Sheet ( Million) for Q1 FY 18 30-Jun-17 31-Mar-17 EQUITY AND LIABILITIES Shareholders’ funds - Share capital 563 563 - Reserves and surplus 21,359 20,636 Total - Shareholders' funds 21,922 21,199 Non-current liabilities www.cyient.com/investors - Long-term borrowings and liabili
Slide 19: Consolidated Cash Flow
Consolidated Cash Flow ( Million) for Q1 FY 18 30-Jun-17 31-Mar-17 30-Jun-16 Earnings before Interest and Tax 1,172 845 911 Taxes paid -184 -250 -116 Depreciation 242 235 206 Net working capital change -362 547 -291 Other operating items 17 -84 12 Operating cash flow before interest 885 1,293 722 ww
Slide 20: About Cyient
Cyient (Estd: 1991, NSE: CYIENT) provides engineering, manufacturing, geospatial, network and operations management services to global industry leaders. We leverage the power of digital technology and advanced analytics capabilities, along with domain knowledge and technical expertise, to solve comp