Slide 1: Exchange filing cover letter: Investor update
CYIENT 22 April 2021 The BSE Limited The National Stock Exchange of India Ltd PJ Towers, 25" Floor, Exchange Plaza, Dalal Street Bandra-Kurla Complex, Bandra (E) Mumbai 400001. Mumbai-400 051. Scrip Code: 532175 Scrip Code: CYIENT Dear Sir, Sub: Investor update — Reg. Please find enclosed investor u
Slide 2: Investor Presentation Q4 FY21 & FY21
Investor PRESENTATION Q4 FY21 & FY21 CYIENT © 2021 CONFIDENTIAL CYIENT © 2021 CONFIDENTIAL
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 BVR MOHAN REDDY MM Murugappan Founder Chairman and Non Executive Chairman Board Member AJAY AGGARWAL KARTHIK NATARAJAN KRISHNA BODANAPU Executive Director, Executive Director, MD & CEO CYIENT © 2021 CONFIDENTIAL 3 President & CFO President & COO
Slide 5: Highlights, Financial Update, Business Update
Financial Business Highlights Update Update • Financial Highlights • Revenue • BU performance update • Business Highlights • Income statement update • Outlook for FY22 • Margin bridge • Cash generation Annexures CYIENT © 2021 CONFIDENTIAL 4
Slide 6: Highlights, Financial Update, Business Update
Financial Business Highlights Update Update • Financial Highlights • Revenue • BU performance update • Business Highlights • Income statement update • Outlook for FY22 • Margin bridge • Cash generation Annexures CYIENT © 2021 CONFIDENTIAL 5
Slide 7: Highlights for the Quarter
Highlights for the Quarter Revenue Financial Highlights for Quarter • Group revenue at $149.9 Mn; growth of 6.0% 4.7% QoQ (₹ terms) QoQ (4.7% in CC) and growth of 0.4% YoY 6.0% QoQ ($ terms) • Services revenue at $119.6 Mn; growth of 3.7% Quarterly revenue at QoQ (2.2% in CC). $149.9Mn/₹10,932Mn • D
Slide 8: Highlights for the Year
Highlights for the Year Revenue Financial Highlights for the Year • Consolidated revenue at $556.8 Mn; de-growth -6.7% YoY (₹ terms) of 10.9% (12.0% in CC) -10.9% YoY ($ terms) • Services revenue at $461.3 Mn; de-growth of Yearly revenue at 16.2% (17.7% in CC). $556.8 Mn/₹41,324Mn • DLM revenue at $
Slide 9: Highlights for the Quarter
Highlights for the Quarter Cyient and Eolos Partner to Launch "Design for Circularity" Consulting and Engineering Practice • New practice combines 25+ years of industrial experience and operational expertise of the two companies to support industries in transitioning towards greater sustainability •
Slide 10: Highlights, Financial Update, Business Update
Financial Business Highlights Update Update • Financial Highlights • Revenue • BU performance update • Business Highlights • Income statement update • Outlook for FY22 • Margin bridge • Cash generation Annexures CYIENT © 2021 CONFIDENTIAL 9
Slide 11: Revenue for Q4 FY21
Revenue for Q4 FY21 Revenue Q4 FY21 Q3 FY21 Q2 FY21 Q1 FY21 Q4 FY20 QoQ YoY Group $ Mn 149.9 141.4 135.0 130.6 149.2 6.0% 0.4% ₹ Mn 10,932 10,443 10,033 9,917 10,736 4.7% 1.8% Services $ Mn 119.6 115.3 114.1 112.2 132.3 3.7% -9.6% ₹ Mn 8,722 8,521 8,487 8,521 9,513 2.4% -8.3% DLM $ Mn 30.3 26.0 20.9
Slide 12: Revenue for FY21
Revenue for FY21 Revenue FY21 FY20 FY19 FY18 FY17 YoY Group $ Mn 556.8 625.2 660.0 607.4 537.8 -10.9% ₹ Mn 41,324 44,274 46,175 39,175 36,065 -6.7% Services $ Mn 461.3 550.7 580.2 545.7 483.3 -16.2% ₹ Mn 34,252 38,992 40,592 35,193 32,417 -12.2% DLM $ Mn 95.6 74.5 79.8 61.7 54.5 28.3% ₹ Mn 7,072 5,2
Slide 13: Income statement for Q4 FY21
Income statement for Q4 FY21 All Figures in ₹ Mn Q4 FY21 Q3 FY21 Q4 FY20 QoQ EBIT Movement Revenue 10,932 10,443 10,736 • Consolidated normalized EBIT margin stood at EBIT (Reported) 1,073 1,165 464 12.6%; up by 148 bps QoQ EBIT (Normalised) 1,382 1,165 905 • Services EBIT at 13.6%; was up by 233 bp
Slide 14: Income statement for FY21
Income statement for FY21 All Figures in ₹ Mn FY21 FY20 YoY EBIT Movement Revenue 41,324 44,274 • Consolidated EBIT margin stood at 10.1%; up by EBIT (Reported) 3,853 3,643 85 bps QoQ EBIT (Normalised) 4,162 4,084 • Services EBIT at 11% up by 46 bps YoY driven by improvement in operational metrics (
Slide 15: PAT and EBIT Walk – Reported to Normalized
PAT and EBIT Walk – Reported to Normalized PAT walk - Reported to Normalised (₹Mn) ₹ Mn Note Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 Reported PAT 1,031 954 452 3,638 3,425 Exceptional Items Impairment of Goodwill 1 309 309 Reversal of earnouts 2 (343) (343) • We have strong governance Decrease in fair val
Slide 16: EBIT margin bridge for Q4 FY21 and FY21
EBIT margin bridge for Q4 FY21 and FY21 Particulars Particulars EBIT Q3 FY21 (Group) 11.2% Normalised EBIT FY20 (Group) 9.2% Add: DLM impact 12 bps Add: DLM impact 130 bps EBIT Q3 FY21 (Services) 11.3% Normalised EBIT FY20 (Services) 10.5% Tailwinds in Q4 FY21 Headwinds in FY21 Improvements in opera
Slide 17: Cash Generation for Q4FY21 and FY21
Cash Generation for Q4FY21 and FY21 Q4 Q3 Q4 Cash Generation All Figures in ₹ Mn FY21 FY20 FY21 FY21 FY20 Services • Cash and cash equivalents at Profit before tax 1,204 1,109 904 4,558 4,734 healthy level of ₹14,650 Mn (+/-) Non-cash & non-operating items 411 339 817 1,519 2,095 • In Q4, the free c
Slide 18: Highlights, Financial Update, Business Update
Financial Business Highlights Update Update • Financial Highlights • Revenue • BU performance update • Business Highlights • Income statement update • Outlook for FY22 • Margin bridge • Cash generation Annexures CYIENT © 2021 CONFIDENTIAL 17
Slide 19: BU performance Q4 FY21
BU performance Q4 FY21 Services DLM Group Business Units $ Mn QoQ YoY $ Mn QoQ YoY $ Mn QoQ YoY A&D 30.3 3.9% -33.1% 20.7 22.5% 83.5% 51.0 10.6% -9.9% Communications 34.8 2.2% 3.4% 0.2 202.2% 618.5% 35.0 2.5% 3.8% E&U 15.7 5.3% 2.5% 2.6 33.1% 2.5% 18.3 8.5% 2.5% Transportation 16.1 1.3% 7.1% 0.3 -21
Slide 20: BU performance FY21
BU performance FY21 Services DLM Group Business Units $ Mn YoY $ Mn YoY $ Mn YoY A&D 125.4 -32.8% 62.1 22.9% 187.5 -20.9% Communications 131.3 2.5% 0.3 -37.1% 131.6 2.4% • Group de-growth stood at E&U 56.9 -20.1% 7.1 -34.3% 64.0 -22.0% 10.9% YoY and 12.0% in cc Transportation 61.8 -7.2% 0.9 634% 62.
Slide 21: BU performance per new structure Q4 FY21
BU performance per new structure Q4 FY21 Services DLM Group Business Units $ Mn QoQ YoY $ Mn QoQ YoY $ Mn QoQ YoY Transportation 46.4 2.9% -23.1% 21.0 21.5% 84.3% 67.5 8.1% -6.0% Aerospace 30.3 3.9% -33.1% 20.7 22.5% 83.5% 51.0 10.6% -9.9% Rail transportation 16.1 1.3% 7.1% 0.3 -21.1% 165.8% 16.4 0.
Slide 22: BU performance per new structure FY21
BU performance per new structure FY21 Services DLM Group Business Units $ Mn YoY $ Mn YoY $ Mn YoY Transportation 187.2 -26.0% 63.0 24.4% 250.1 -17.6% Aerospace 125.4 -32.8% 62.1 22.9% 187.5 -20.9% Rail transportation 61.8 -7.2% 0.9 634% 62.7 -6.0% C&U 159.7 -6.9% 0.3 -37.1% 160.0 -7.0% Communicatio
Slide 23: Business Performance & Outlook (1/4)
Business Performance & Outlook (1/4) Aerospace & Defense Aerospace & Defense BU witnessed a growth of 3.9% QoQ and declined by 33.1% YoY. This is the first quarter to witness a sequential growth in services since March 2020 led by growth in some of our key customers. The recovery in commercial aviat
Slide 24: Business Performance & Outlook (2/4)
Business Performance & Outlook (2/4) E&U The E&U vertical grew by 5.3% QoQ and 2.5% YoY. Growth in Energy vertical was driven by recovery in a few key accounts and as an aggregation of growth across multiple smaller accounts. We see continued signs of recovery in the upstream O&G markets as oil pric
Slide 25: Business Performance & Outlook (3/4)
Business Performance & Outlook (3/4) MTH Medical Technology and Healthcare business unit has experienced a de-growth of 1.5% QoQ and 0.8% YoY. The QoQ de-growth was driven by right shifting of recently won services project and a slowdown in manufacturing production for one of our top DLM clients due
Slide 26: Business Performance & Outlook (4/4)
Business Performance & Outlook (4/4) SIA Semiconductor grew by 22.8% QoQ and 39.0% YoY. Growth in Q4 was driven by a recovery in the services business and strong customer demand. Customer demand for engineering services is expected to remain strong. For solutions there is a gradual recovery, though
Slide 27: Outlook for FY22
Outlook for FY22 Revenue • We expect to grow double digit in FY22. We don’t have a specific range to provide yet. We will see how H1 shapes up and comment once we have better visibility for the full year • In Q1 FY22, the Group revenue will witness a decline due to drop in DLM • Services revenue wil
Slide 28: 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 of the curve
Slide 29: 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 30: Thank you
Thank you 29 CYIENT © 2021 CONFIDENTIAL
Slide 31: Annexure
Investor PRESENTATION Annexure Q4 FY21 & FY21 CYIENT CYIENT©©2021 2020 CONFIDENTIAL 2021 CONFIDENTIAL
Slide 32: Message from the Management
Message from the Management Commenting on the results, Mr. Krishna Bodanapu, Managing Director and Chief Executive Officer, said “Q4 FY21 performance was in line with our expectations. We delivered growth of 6% QoQ and 0.4% YoY. Our services revenue at $119.6 Mn was higher by 3.7% QoQ driven by the
Slide 33: Message from the Management
Message from the Management Commenting on the results, Mr. Ajay Aggarwal, President & CFO, said, “I am pleased to share that Cyient achieved a PAT of INR 3,714 Mn in FY21 which is almost flat to our PAT in FY20 despite a double digit decline in revenue. Revenue for FY21 is $556.8 Mn (de-growth of 10
Slide 34: Consolidated Financial Metrics
Consolidated Financial Metrics Key Financial Metrics Growth % Growth % ₹ Mn Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 QoQ YoY YoY Revenue 10,932 10,443 10,736 4.7% 1.8% 41,324 44,274 -6.7% ^ Normalised EBIT 1,382 1,165 905 18.6% 52.7% 4,162 4,084 1.9% Normalised EBIT margin 12.6% 11.2% 8.4% 148 bps 421 bps
Slide 35: PAT and EBIT Walk – Reported to Normalized
PAT and EBIT Walk – Reported to Normalized PAT walk - Reported to Normalized (₹Mn) ₹ Mn Note Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 Reported PAT 1,031 954 452 3,638 3,425 Exceptional Items Impairment of Goodwill 1 309 309 Reversal of earnouts 2 (343) (343) Decrease in fair value of minority 3 110 110 inv
Slide 36: Consolidated Revenue Segmentation
Consolidated Revenue Segmentation By Geography (%) Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 Americas 47.4% 49.0% 55.7% 49.6% 55.8% Europe, Middle East, Africa 24.6% 25.3% 25.7% 25.7% 26.4% Asia Pacific (includes India) 28.0% 25.7% 18.6% 24.7% 17.8% By Business Unit (%)^ Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 Ae
Slide 37: Consolidated Operations Metrics
Consolidated Operations Metrics Account Receivables (in Days) Q4 FY21 Q3 FY21 Q4 FY20 DSO Total 84 88 95 - Billed 66 68 61 - Unbilled 18 20 34 Order Intake ($ Mn)^ Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 Cyient Services 166 178 196 555 646 DLM 72 17 60 122 110 Group OI Total 238 195 255 677 756 ^The Order
Slide 38: Consolidated Client Metrics
Consolidated Client Metrics Top Clients: Revenue Contribution (%) Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 Top 5 33.5% 28.8% 31.4% 29.2% 31.8% Top 10 44.1% 38.4% 43.6% 40.3% 43.2% No. of Million $ Clients Q4 FY21 Q3 FY21 Q4 FY20 20 Mn+ 3 3 5 10 Mn+ 8 8 10 5 Mn+ 30 30 28 1 Mn+ 90 89 86 New Clients Added 6 1
Slide 39: Consolidated Employee Metrics
Consolidated Employee Metrics Employee Q4 FY21 Q3 FY21 Q4 FY20 Total Headcount 12,032 12,187 13,859 Technical & Pool 11,098 11,248 12,825 Non-Technical 333 334 349 Support 601 605 685 Voluntary Attrition 21.2% 13.2% 18.9% CYIENT CYIENT© CYIENT ©2021 © 2020 CONFIDENTIAL 2021 CONFIDENTIAL CONFIDENTIAL
Slide 40: Consolidated Other Financial Metrics
Consolidated Other Financial Metrics Capex (₹ Mn)^ Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 Capital Expenditure 77 189 683 949 2138 ^Capex includes investment and business capex Cash Position (₹ Mn) Q4 FY21 Q3 FY21 Q4 FY20 Cash & Cash Equivalent 14,650 14,313 9,518 Cash & Bank balances 4,017 5,150 4,152 In
Slide 41: Consolidated Income Statement
Consolidated Income Statement ₹ Mn Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 Operating Revenue 10,932 10,443 10,736 41,324 44,274 Cost of Revenue 6,995 6,826 7,139 27,161 28,963 Direct Salary and related costs 4,031 4,219 4,837 16,766 19,625 Direct Travel 85 81 196 333 769 Delivery Management 200 209 202 91
Slide 42: Consolidated Balance Sheet
Consolidated Balance Sheet ₹ Mn Q4 FY21 Q3 FY21 Q4 FY20 EQUITY AND LIABILITIES Shareholders’ funds - Share capital 550 550 550 - Reserves and surplus 28,991 27,781 25,027 Total - Shareholders' funds 29,541 28,331 25,577 Non-current liabilities - Long-term borrowings and liabilities 2,827 3,262 3,556
Slide 43: Consolidated Cash Flow Movement
Consolidated Cash Flow Movement ₹ Mn Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 Free cash flow from operations 1,897 1,518 1,074 7,609 3,686 Investment in non current investments 18 (640) (60) (637) (130) Settlement of deferred consideration 0 0 0 (99) (204) pertaining to prior year acquisitions Interest rec
Slide 44: Other Income for Q4 FY21 & FY21
Other Income for Q4 FY21 & FY21 All Figures in ₹ Mn Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 For the quarter Income from Treasury • Other income is lower by ₹49 Mn Interest on Invesmtents/Deposits 124 128 94 458 391 (down 22.2% QoQ) Dividend on Mutual Funds 0 0 8 0 29 • Forward contract loss is ₹18 Mn, Sub
Slide 45: Hedge Book for Q4 FY21
Hedge Book for Q4 FY21 Value in Respective Outstanding ForwardContracts* Currency Mn. Booked Rate (in ₹) for next 12 Months 144 151 141 1.5 31-Mar-21 31-Dec-20 31-Mar-20 Wgt. Avg 5.7 Variance of 3.2 3.7 102.5 101.0 91.8 1.1 86.1 0.8 77.1 73.4 68 71 71 59.3 58.2 56.7 55.9 28 29 29 27 29 28 17 17 18 7
Slide 46: Cyient Metrics (Excluding Design Led Manufacturing)
Cyient Metrics (Excluding Design Led Manufacturing) CYIENT CYIENT©©2021 2020 CONFIDENTIAL 2021 CONFIDENTIAL 16
Slide 47: Cyient Metrics (Excluding DLM) (1/3)
Cyient Metrics (Excluding Design Led Manufacturing) (1/3) By Geography (%) Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 Americas 52.4% 53.1% 57.0% 53.9% 58.4% Europe, Middle East, Africa 28.3% 28.2% 27.4% 27.9% 26.5% Asia Pacific (including India) 19.2% 18.6% 15.6% 18.3% 15.1% By Business Unit (%) Q4 FY21 Q3 F
Slide 48: Cyient Metrics (Excluding DLM) (2/3)
Cyient Metrics (Excluding Design Led Manufacturing) (2/3) Currency Mix (%) Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 USD 49.5% 52.3% 56.6% 51.5% 56.7% EURO 14.8% 14.4% 13.2% 14.7% 13.9% GBP 10.5% 9.7% 10.8% 9.9% 9.3% AUD 13.5% 12.0% 8.5% 12.7% 9.0% Others 11.7% 11.6% 10.9% 11.1% 11.0% Utilization (%) Q4 FY2
Slide 49: Cyient Metrics (Excluding DLM) (3/3)
Cyient Metrics (Excluding Design Led Manufacturing) (3/3) Top Clients: Revenue Contribution (%) Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 Top 5 35.3% 35.3% 35.5% 35.3% 36.1% Top 10 47.1% 47.0% 49.2% 47.0% 49.0% No. of Million $ Clients Q4 FY21 Q3 FY21 Q4 FY20 20 Mn+ 3 3 5 10 Mn+ 8 8 10 5 Mn+ 23 23 24 1 Mn+
Slide 50: Cyient Metrics (Design Led Manufacturing)
Cyient Metrics (Design Led Manufacturing) CYIENT CYIENT©©2021 2020 CONFIDENTIAL 2021 CONFIDENTIAL 20
Slide 51: Cyient Metrics (Design Led Manufacturing) (1/3)
Cyient Metrics (Design Led Manufacturing) (1/3) Income Statement - Abridged (In ₹ Mn) Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 Net Revenue 2,210 1,921 1,222 7,072 5,282 Direct Salaries & other costs 280 270 247 1032 1018 Material Cost 1,565 1,319 813 5,047 3,643 Gross Profit 365 333 162 993 622 SG&A 98 64
Slide 52: Cyient Metrics (Design Led Manufacturing) (2/3)
Cyient Metrics (Design Led Manufacturing) (2/3) By Business Unit (%) Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 Aerospace and Defense 68.4% 65.0% 66.6% 65.0% 67.8% Transportation 1.1% 1.6% 0.7% 0.9% 0.2% Energy & Utilities 8.5% 7.5% 14.9% 7.5% 14.6% Medical 21.3% 25.6% 17.2% 26.2% 16.4% Communications 0.6% 0
Slide 53: Cyient Metrics (Design Led Manufacturing) (3/3)
Cyient Metrics (Design Led Manufacturing) (3/3) No. of Million $ Clients Q4 FY21 Q3 FY21 Q4 FY20 5 Mn+ 7 7 4 2 Mn+ 13 12 9 1 Mn+ 15 12 11 New Clients Added 0 0 2 Key Operational Metrics Q4 FY21 Q3 FY21 Q4 FY20 Headcount 665 628 608 DSO (in Days) 97 68 45 DPO (in Days) 89 83 73 Customer Advance (in D
Slide 54: 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 of the curve
Slide 55: 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 56: Thank you
Thank you CYIENT © 2021 CONFIDENTIAL 26
Slide 57: Note on exceptional items in FY20
Note on exceptional items in FY20 Sl.no Exceptional Items ₹ Mn Description Impairment of Global Services Carrying value of the asset has been impaired during the quarter, based on 1 109 Engineering Asia intangible asset forecast of underlying business contracts. However, business in total will conti