Slide 1: Stock exchange cover letter
CYIENT • 15 July 2021 The BSE Limited The National Stock Exchange of India Ltd PJ Towers, 25th Floor, Exchange Plaza, Dalal Street Bandra-Kurla Complex, Sandra (E) Mumbai 400001. Mumbai-400 051. Scrip Code: 532175 Scrip Code: CYIENT Dear Sir, Sub: Investor Presentation Please find enclosed investor
Slide 2: Q1 FY22 Investor Presentation
© CYIENT 2021 | Confidential Q1 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: Agenda
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: Agenda
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 6.7% YoY / -3.2% QoQ (₹ terms) 9.9% YoY / -4.2% QoQ ($ terms) Revenue • Group revenue at $143.5 Mn; growth of 9.9% Quarterly revenue at $143.5Mn/₹10,582Mn YoY and de-growth of 4.2% QoQ (4.3% in CC) • Services revenue at $119.3 Mn; growth of
Slide 8: Highlights for the Quarter (1/3)
Highlights for the Quarter (1/3) John Deere HMLR Partner-level Status Support HMLR to Top Honors at NASSCOM Engineering and Innovation Excellence Awards 2021 in ‘Achieving Centralize and Cyient won four awards at the inaugural edition of the Excellence Digitally Register NASSCOM Engineering and Inno
Slide 9: Highlights for the Quarter (2/3)
Highlights for the Quarter (2/3) CyiOPS Commitment to Innovation CyiOPS (Cyient Outage Planning Launch of first sustainability with CyientifIQ & Scheduling) Solution for Utility report -Sustainability Goals • Launched innovation platform - Company Outage Planning and for 2025 CyientifIQ, with focus
Slide 10: Highlights for the Quarter (3/3)
Highlights for the Quarter (3/3) New Gender-Neutral Parental Leave Policy • Cyient employees, including birth and adoptive parents of any gender, can take up to 12 weeks of paid time off at full pay following the birth or adoption of their child • In-line with practices and policies to foster an inc
Slide 11: Agenda
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 Q1 FY22
Revenue for Q1 FY22 Revenue Q1 FY22 QoQ YoY Q4 FY21 Q3 FY21 Q2 FY21 Q1 FY21 Group $ Mn 143.5 -4.2% 9.9% 149.9 141.4 135.0 130.6 • Services growth stood at 6.3% ₹ Mn 10,582 -3.2% 6.7% 10,932 10,443 10,033 9,917 YoY with the non-Aero divisions’ Services growth of 14.4% YoY $ Mn 119.3 -0.3% 6.3% 119.6
Slide 13: Income statement for Q1 FY22
Income statement for Q1 FY22 All Figures in ₹ Mn Q1 FY22 Q4 FY21 Q1 FY21 QoQ EBIT Movement Revenue 10,582 10,932 9,917 • Consolidated EBIT margin stood at 13.1%; higher by EBIT (Reported) 1,388 1,073 511 797 bps YoY and by 48 bps QoQ EBIT (Normalised) 1,388 1,382 511 • Services EBIT margin is highes
Slide 14: EBIT Margin Bridge for Q1 FY22
EBIT Margin Bridge for Q1 FY22 Particulars Normalized EBIT Q4 FY21 (Group) 12.6% Add: DLM impact 97 bps EBIT Q4 FY21 (Services) 13.6% Tailwinds in Q1 FY22 Improvements in operational metrics 93 bps Lower SG&A spend 176 bps Headwinds in Q1 FY22 Impact of merit increase 176 bps EBIT Q1 FY22 (Services)
Slide 15: Cash Generation for Q1FY22
Cash Generation for Q1FY22 All Figures in ₹ Mn Q1FY22 Q4 FY21 Q1 FY21 Services Cash Generation Profit before tax 1,466 1,204 1,141 • Cash and cash equivalents at healthy level of (+/-) Non-cash & non-operating items 288 411 380 ₹15,262 Mn Operating profit before WC changes 1,754 1,615 1,521 • In Q1,
Slide 16: Agenda
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 Q1 FY22
BU Performance Q1 FY22 Business Units $ Mn Q1 FY22 QoQ YoY Transportation 46.6 0.5% -3.6% • Services de-growth stood at 0.3% QoQ and 0.4% in cc Aerospace 30.9 2.0% -11.5% o Registered growth in the A&D, despite headwinds; Rail transportation 15.7 -2.5% 17.2% clocked a 2% sequential growth in Q1 FY22
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: Communications Unit delivered a growth of 2% for the sequential quarter, on the top of the 2.2% growth in the previous quarter. This quarter was best ever quarter for Communications unit and this consistent improvement
Slide 20: Business Performance & Outlook (2/3)
Business Performance & Outlook (2/3) Transportation Transportation BU unit witnessed a growth of 0.5% QoQ and a de-growth of 3.6% YoY. The Aerospace business witnessed growth in key account, whereas the Rail business stayed almost flat due to a right shift in the some the rail projects. The Rail bus
Slide 21: Business Performance & Outlook (3/3)
Business Performance & Outlook (3/3) Portfolio of Services Medical Technology and Healthcare witnessed positive growth in Q1 FY22. This was driven by engineering and digital services contracts across multiple key accounts. The outlook for this sector for FY22 remains positive as we continue to execu
Slide 22: Outlook for FY22
Outlook for FY22 Revenue EBIT Margin Others • We continue to expect to • We also maintain that for • As mentioned at the grow double digit in FY22 the full year we expect beginning of the year, we in Services with growth the margins to improve at do not expect any export coming back from Q2 least by
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 Q1 FY22
INVESTOR PRESENTATION © CYIENT 2021 | Confidential Annexure Q1 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 Q1 FY22 results are in line with our expectations considering this has been a significantly challenging quarter with Covid Wave 2 impact. We recorded a revenue of $14
Slide 28: Message from the Management
Message from the Management Commenting on the results, Mr. Ajay Aggarwal, President & CFO, said, We delivered good results in Q1FY22 across operating margin and free cash flow despite a challenging quarter with subdued revenue growth. Our effort to rationalise cost and improve operational efficiency
Slide 29: Consolidated Financial Metrics
Consolidated Financial Metrics Key Financial Metrics Growth % ₹ Mn Q1 FY22 Q4 FY21 Q1 FY21 QoQ YoY Revenue 10,582 10,932 9,917 -3.2% 6.7% Reported EBIT 1,388 1,073 511 29.4% 171.7% Normalised EBIT 1,388 1,382 511 0.5% 171.7% Normalised EBIT margin 13.1% 12.6% 5.2% 48 bps 797 bps Reported PAT 1,150 1
Slide 30: Consolidated Revenue Segmentation
Consolidated Revenue Segmentation By Geography (%) Q1 FY22 Q4 FY21 Q1 FY21 Americas 47.9% 47.5% 52.3% Europe, Middle East, Africa 28.4% 24.6% 24.0% Asia Pacific (includes India) 23.7% 27.9% 23.7% By Business Unit (%) Q1 FY22 Q4 FY21 Q1 FY21 Transportation total 43.6% 45.0% 46.8% Aerospace 32.1% 34.1
Slide 31: Consolidated Operations Metrics
Consolidated Operations Metrics Account Receivables (in Days) Q1 FY22 Q4 FY21 Q1 FY21 DSO Total 90 84 100 - Billed 67 66 67 - Unbilled 23 18 33 Order Intake ($ Mn)^ Particulars Q1 FY22 Q4 FY21 Q1 FY21 Cyient Services 120 166 99 DLM 20 72 18 Group OI Total 140 238 117 ^The Order Intake reported is th
Slide 32: Consolidated Client Metrics
Consolidated Client Metrics Top Clients: Revenue Contribution (%) Q1 FY22 Q4 FY21 Q1 FY21 Top 5 31.9% 33.5% 30.2% Top 10 43.3% 44.1% 40.1% No. of Million $ Clients Q1 FY22 Q4 FY21 Q1 FY21 20 Mn+ 3 3 3 10 Mn+ 10 8 9 5 Mn+ 30 30 30 1 Mn+ 89 90 97 © CYIENT 2021 | Confidential New Clients Added 10 6 25
Slide 33: Consolidated Employee Metrics
Consolidated Employee Metrics Employee Q1 FY22 Q4 FY21 Q1 FY21 Total Headcount 12,433 12,032 12,820 Technical & Pool 11,495 11,098 11,846 Non-Technical 350 333 320 Support 588 601 654 Voluntary Attrition 23.5% 21.2% 13.6% © CYIENT 2021 | Confidential 8
Slide 34: Consolidated Other Financial Metrics
Consolidated Other Financial Metrics Cash Position (₹ Mn) Q1 FY22 Q4 FY21 Q1 FY21 Cash & Cash Equivalent 15,262 14,650 11,098 Cash & Bank balances 6,726 4,017 4,733 Investments in FDs 8,536 10,633 6,365 Investment in MFs 0 0 0 Capex (₹ Mn) Q1 FY22 Q4 FY21 Q1 FY21 Capital Expenditure 214 77 563 © CYI
Slide 35: Consolidated Income Statement
Consolidated Income Statement Income Statement ₹ Mn Q1 FY22 Q4 FY21 Q1 FY21 Operating Revenue 10,582 10,932 9,917 Cost of Revenue 6,783 6,995 6,891 Direct Salary and related costs 4,264 4,031 4,441 Direct Travel 79 85 69 Delivery Management 222 200 255 Material cost 1,234 1,565 1,090 Other costs inc
Slide 36: Consolidated Balance Sheet
Consolidated Balance Sheet Balance Sheet ₹ Mn Q1 FY22 Q4 FY21 Q1FY21 EQUITY AND LIABILITIES Shareholders’ funds - Share capital 548 550 550 - Reserves and surplus 27,930 28,991 25,889 Total - Shareholders' funds 28,478 29,541 26,439 Non-current liabilities - Long-term borrowings and liabilities 2,46
Slide 37: Consolidated Cash Flow Movement
Consolidated Cash Flow Movement ₹ Mn Q1 FY22 Q4 FY21 Q1 FY21 Free cash flow from operations 848 1,897 2,163 Investment in non current investments 0 18 0 Settlement of deferred consideration (45) 0 (99) pertaining to prior year acquisitions Interest received 97 69 21 Finance costs paid (41) (57) (58)
Slide 38: Other Income
Other Income All Figures in ₹ Mn Q1 FY22 Q4 FY21 Q1 FY21 For the quarter Income from Treasury • Other income is higher by ₹86 Mn (up by 50.7% Interest on Invesmtents/Deposits 133 124 91 QoQ) Subtotal (A) 133 124 91 Realised gains/(losses) on Fwd Contracts (B) 42 (18) (52) • Forward contract gain is
Slide 39: Hedge Book
Hedge Book Value in Respective Outstanding ForwardContracts* Currency Mn. Booked Rate (in ₹) for next 12 Months 2.1 Wgt.Avg 30-Jun-21 31-Mar-21 30-Jun-20 4.4 105.0 102.9 Variance of 2.6 153 2.6 92.8 88.4 144 141 76.8 74.3 0.6 2.1 60.5 59.9 57.9 55.8 72 68 69 30 28 29 29 27 28 18 17 17 7 7 7 USD EUR
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 (%) Q1 FY22 Q4 FY21 Q1 FY21 Americas 52.0% 52.4% 56.8% Europe, Middle East, Africa 27.6% 28.3% 26.0% Asia Pacific (including India) 20.5% 19.2% 17.1% By Business Unit (%) Q1 FY22 Q4 FY21 Q1 FY21 Transportation total 39.1% 38.8% 4
Slide 42: Cyient Metrics Excluding DLM (2/3)
Cyient Metrics (Excluding Design Led Manufacturing) (2/3) Currency Mix (%) Q1 FY22 Q4 FY21 Q1 FY21 USD 50.1% 49.5% 47.4% EURO 13.5% 14.8% 8.7% GBP 9.2% 10.5% 10.2% AUD 14.6% 13.5% 12.4% Others 12.7% 11.7% 21.4% Utilization (%) Q1 FY22 Q4 FY21 Q1 FY21 Utilization 83.1% 83.7% 74.2% Account Receivables
Slide 43: Cyient Metrics Excluding DLM (3/3)
Cyient Metrics (Excluding Design Led Manufacturing) (3/3) Top Clients: Revenue Contribution (%) Q1 FY22 Q4 FY21 Q1 FY21 Top 5 36.9% 35.3% 35.2% Top 10 49.2% 47.1% 46.6% No. of Million $ Clients Q1 FY22 Q4 FY21 Q1 FY21 20 Mn+ 3 3 3 10 Mn+ 10 8 9 5 Mn+ 23 23 26 1 Mn+ 74 75 82 New Clients Added 10 6 25
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) Q1 FY22 Q4 FY21 Q1 FY21 Net Revenue 1,786 2,210 1,396 Direct Salaries & other costs 163 280 221 Material Cost 1,234 1,565 1,089 Gross Profit 267 365 86 SG&A 95 98 99 Depreciation & amortisation 66 73 51 EBIT 106 19
Slide 46: Cyient Metrics (Design Led Manufacturing) (2/3)
Cyient Metrics (Design Led Manufacturing) (2/3) By Business Unit (%) Q1 FY22 Q4 FY21 Q1 FY21 Transportation total 65.6% 69.5% 69.4% Aerospace 62.4% 68.4% 68.9% Rail transportation 3.2% 1.1% 0.5% C&U total 0.4% 0.6% 0.1% Communications 0.4% 0.6% 0.1% Utilities 0.0% 0.0% 0.0% Portfolio total 34.1% 30.
Slide 47: Cyient Metrics (Design Led Manufacturing) (3/3)
Cyient Metrics (Design Led Manufacturing) (3/3) No. of Million $ Clients Q1 FY22 Q4 FY21 Q1 FY21 5 Mn+ 7 7 4 2 Mn+ 11 13 15 1 Mn+ 15 15 15 New Clients Added 0 0 0 Key Operational Metrics Q1 FY22 Q4 FY21 Q1 FY21 Headcount 607 665 638 DSO (in Days) 112 97 53 DPO (in Days) 69 89 89 Customer Advance (in
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