Cyient Limited · NSE:CYIENT

Cyient — Q3 FY22 Earnings Presentation

50 slides from Cyient's earnings presentation, Jan 20, 2022

  1. Slide 1: Cover letter to stock exchanges

    CYll!NT • 20 January 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, Sub: Investor Presentation Please find enclosed inves

  2. Slide 2: Q3 FY22 Investor Presentation

    © CYIENT 2021 | Confidential Q3 FY22 INVESTOR PRESENTATION

  3. 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

  4. 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

  5. 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

  6. 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

  7. Slide 7: Highlights for the Quarter

    Highlights for the Quarter Financial Highlights for Quarter • Group revenue at $157.9 Mn; growth of 11.7% YoY and 5.2% QoQ (5.9% in CC) 13.3% YoY / 6.5% QoQ (₹ terms) • Services revenue at $129.1 Mn; growth of 11.7% YoY / 5.2% QoQ ($ terms) Revenue 11.9% YoY and 3.6% QoQ (4.4% in CC) Quarterly reven

  8. Slide 8: Highlights for the Quarter

    Highlights for the Quarter Leadership Position in Digital Launch of Global Management Hived off the Software Defined Radio Engineering and E R&D - Zinnov Zones Consulting Practice (SDR) division of the Company Recognition • With the launch of its consulting • Signed a definitive agreement with • Cyi

  9. Slide 9: 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 8

  10. Slide 10: Revenue for Q3 FY22

    Revenue for Q3 FY22 Revenue Q3 FY22 QoQ YoY Q2 FY22 Q1 FY22 Q4 FY21 Q3 FY21 Group $ Mn 157.9 5.2% 11.7% 150.1 143.5 149.9 141.4 • Services growth at 11.9% YoY CC growth 5.9% 12.1% • DLM growth at 10.6% YoY ₹ Mn 11,834 6.5% 13.3% 11,116 10,582 10,932 10,443 Services • Group growth at 11.7% YoY $ Mn 1

  11. Slide 11: Income statement for Q3 FY22

    Income statement for Q3 FY22 All Figures in ₹ Mn Q3 FY22 Q2 FY22 Q3 FY21 QoQ EBIT Movement Revenue 11,834 11,116 10,443 • Consolidated EBIT margin stood at 13.9%; higher by EBIT (Reported) 1,642 1,558 1,165 272 bps YoY and lower by 14 bps QoQ PAT (Reported) 1,317 1,214 954 • Services EBIT margin at

  12. Slide 12: EBIT Margin Bridge for Q3 FY22

    EBIT Margin Bridge for Q3 FY22 Particulars EBIT Q2 FY22 (Group) 14.0% Add: DLM impact 147 bps EBIT Q2 FY22 (Services) 15.5% Tailwinds in Q3 FY22 Improvements in operational metrics 87 bps Volume impact on SG&A 139 bps Lower depreciation and volume impact on depreciation 54 bps Headwinds in Q3 FY22 C

  13. Slide 13: Cash Generation for Q3FY22

    Cash Generation for Q3FY22 All Figures in ₹ Mn Q3 FY22 Q2 FY22 Q3 FY21 Services Cash Generation Profit before tax 1,692 1,505 1,109 • Cash and cash equivalents, including long-term (+/-) Non-cash & non-operating items 395 400 339 treasury investments, at healthy level of ₹14,768 Operating profit bef

  14. Slide 14: 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 13

  15. Slide 15: BU Performance Q3 FY22

    BU Performance Q3 FY22 Business Units $ Mn Q3 FY22 QoQ YoY Transportation 47.6 -0.5% 5.6% • Services growth stood at 3.6 QoQ and 4.4% in cc Aerospace 33.4 3.9% 14.5% o Aerospace witnessed sequential growth of 3.9% Rail transportation 14.2 -9.5% -10.6% o Growth in C&U and Portfolio, de-growth in rail

  16. Slide 16: Growth Story Q3 FY22 YoY

    Growth Story Q3 FY22 YoY Pipeline Growth of 27% | Order intake (OI) Growth of 16% | Revenue Growth of 12% Pipeline Growth OI Growth 27% 16% Group Revenue 12% Large Deals ($M) Top 30 Accounts New Age Tech 69 15% 22% • Top 30 Accounts Growth of 15% and New Age Tech (including 5 © CYIENT 2021 | Confide

  17. Slide 17: Innovative Technology Solutions and Programs

    Innovative Technology Solutions and Programs SN Industry Technology Solutions / Programs Cloud Migration of Multi-Modal Transport Billing Platform: E2E solution 1 Transportation Innovative solution for fare collection platform, migration of TB of data to Cloud & implementation for a major city in US

  18. Slide 18: Business Performance & Outlook

    BUSINESS PERFORMANCE & OUTLOOK © CYIENT 2021 | Confidential 17

  19. Slide 19: Business Performance & Outlook (1/3)

    Business Performance & Outlook (1/3) Transportation Transportation BU unit witnessed marginal de-growth on a sequential basis. The aerospace business continued to grow whereas the rail transportation business witnessed a de-growth. The growth in aerospace can be attributed to the increased business

  20. Slide 20: Business Performance & Outlook (2/3)

    Business Performance & Outlook (2/3) Communications and Utilities Communications: Communications Unit witnessed sequential growth in Q3 FY22. Communications BU won two major deals in Q3, one from a key client in Australia to accelerate their broadband network performance and the other from a key pro

  21. Slide 21: Business Performance & Outlook (3/3)

    Business Performance & Outlook (3/3) Portfolio of Services Medical Technology and Healthcare witnessed positive sequential growth in Q3 FY22. This continues to be driven by the demand for our digital engineering services for new medical device platform development and embedded hardware and software

  22. Slide 22: Outlook for FY22

    Outlook for FY22 Revenue EBIT Margin Others • We will grow double digit • We expect the full year • We maintain that our FY22 in FY22 in Services in USD margins to improve by ~ ETR will be around 25% • DLM growth will be 350 bps leading to best in impacted due to supply class earnings growth for sid

  23. 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

  24. 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

  25. Slide 25: Connect With Us

    #DesigningTomorrowTogether Connect cyient.com With Us Follow us on © CYIENT 2021 | Confidential

  26. Slide 26: Annexure Q3 FY22

    INVESTOR PRESENTATION © CYIENT 2021 | Confidential Annexure Q3 FY22

  27. Slide 27: Message from the Management

    Message from the Management Commenting on the results, Mr. Krishna Bodanapu, Managing Director and Chief Executive Officer, said “We delivered an excellent Q3 performance in line with our expectations. Our revenue for the quarter stood at $157.9Mn, a growth of 11.7% YoY (12.1% cc) and 5.2% QoQ (5.9%

  28. Slide 28: Message from the Management

    Message from the Management Commenting on the results, Mr. Ajay Aggarwal, Executive Director & CFO, said, “It is delightful for us to be on track to be in top quadrant of earnings growth for FY22. On YTD basis we have an earnings growth of 41.1%. This is coupled with good Free cash flow generation d

  29. Slide 29: Consolidated Financial Metrics

    Consolidated Financial Metrics Key Financial Metrics Growth % ₹ Mn Q3 FY22 Q2 FY22 Q3 FY21 QoQ YoY Revenue 11,834 11,116 10,443 6.5% 13.3% Reported EBIT 1,642 1,558 1,165 5.4% 40.9% Reported EBIT margin 13.9% 14.0% 11.2% -14 bps 272 bps Reported PAT 1,317 1,214 954 8.5% 38.0% Foreign Exchange Rate $

  30. Slide 30: Consolidated Revenue Segmentation

    Consolidated Revenue Segmentation By Geography (%) Q3 FY22 Q2 FY22 Q3 FY21 Americas 49.2% 48.8% 49.0% Europe, Middle East, Africa 25.1% 24.8% 25.3% Asia Pacific (includes India) 25.7% 26.4% 25.7% By Business Unit (%) Q3 FY22 Q2 FY22 Q3 FY21 Transportation total 43.8% 43.0% 44.2% Aerospace 34.6% 32.1

  31. Slide 31: Consolidated Operations Metrics

    Consolidated Operations Metrics Account Receivables (in Days) Q3 FY22 Q2 FY22 Q3 FY21 DSO Total 77 81 88 - Billed 57 60 68 - Unbilled 20 21 20 Order Intake ($ Mn)^ Particulars Q3 FY22 Q2 FY22 Q3 FY21 Cyient Services 201 123 178 DLM 25 33 17 Group OI Total 226 156 195 ^The Order Intake reported is th

  32. Slide 32: Consolidated Client Metrics

    Consolidated Client Metrics Top Clients: Revenue Contribution (%) Q3 FY22 Q2 FY22 Q3 FY21 Top 5 28.1% 31.7% 28.8% Top 10 41.7% 43.2% 38.4% No. of Million $ Clients Q3 FY22 Q2 FY22 Q3 FY21 20 Mn+ 3 3 3 10 Mn+ 10 10 8 5 Mn+ 36 32 30 1 Mn+ 93 92 89 New Clients Added 11 18 13 © CYIENT 2021 | Confidentia

  33. Slide 33: Consolidated Employee Metrics

    Consolidated Employee Metrics Employee Q3 FY22 Q2 FY22 Q3 FY21 Total Headcount 12,845 12,707 12,187 Technical & Pool 11,858 11,763 11,248 Non-Technical 347 330 334 Support 640 614 605 Voluntary Attrition 29.3% 24.3% 13.2% © CYIENT 2021 | Confidential 8

  34. Slide 34: Consolidated Other Financial Metrics

    Consolidated Other Financial Metrics Cash Position (₹ Mn) Q3 FY22 Q2 FY22 Q3 FY21 Cash & Cash Equivalent 12,333 14,033 14,313 Cash & Bank balances 4,144 5,846 5,150 Investments in FDs 7,888 8,187 9,163 Investment in MFs 301 0 0 Cash position excluding long-term treasury investments Capex (₹ Mn) Q3 F

  35. Slide 35: Consolidated Income Statement

    Consolidated Income Statement Income Statement ₹ Mn Q3 FY22 Q2 FY22 Q3 FY21 Operating Revenue 11,834 11,116 10,443 Cost of Revenue 7,533 6,846 6,826 Direct Salary and related costs 4,541 4,351 4,219 Direct Travel 111 84 81 Delivery Management 223 221 209 Material cost 1,578 1,332 1,319 Other costs i

  36. Slide 36: Extract of Consolidated Balance Sheet

    Extract of Consolidated Balance Sheet Balance Sheet ₹ Mn Q3FY22 Q2 FY22 Q3 FY21 EQUITY AND LIABILITIES Shareholders’ funds - Share capital 551 551 550 - Reserves and surplus 28,913 28,698 27,781 Total - Shareholders' funds 29,464 29,249 28,331 Non-current liabilities - Long-term borrowings and liabi

  37. Slide 37: Consolidated Cash Flow Movement

    Consolidated Cash Flow Movement ₹ Mn Q3 FY22 Q2 FY22 Q3 FY21 Free cash flow from operations 1,596 2,050 1,518 Investment in non current investments (2,325) (374) (640) Settlement of deferred consideration 0 (180) 0 pertaining to prior year acquisitions Interest received 161 212 175 Finance costs pai

  38. Slide 38: Other Income

    Other Income All Figures in ₹ Mn Q3 FY22 Q2 FY22 Q3 FY21 For the quarter Income from Treasury • Despite lower yield, treasury income was only Interest on Invesmtents/Deposits 97 110 128 marginally lower due to increase in average Dividend on Mutual Funds 8 0 0 invested cash Subtotal (A) 105 110 128

  39. Slide 39: Hedge Book

    Hedge Book Value in Respective Outstanding ForwardContracts* Currency Mn. Booked Rate (in ₹) for next 12 Months 6.1 Wgt.Avg 31-Dec-21 30-Sep-21 31-Dec-20 7.8 Variance of 3.9 157 154 2.9 106.6 146 100.5 92.1 84.3 3.1 4.1 77.3 74.4 61.5 58.4 58.0 54.0 75 72 68 32 31 28 29 28 27 20 19 17 7 7 7 USD EUR

  40. Slide 40: Cyient Metrics (Excluding Design Led Manufacturing)

    Cyient Metrics (Excluding Design Led Manufacturing) © CYIENT 2021 | Confidential 15

  41. Slide 41: Cyient Metrics (Excluding DLM) (1/3)

    Cyient Metrics (Excluding Design Led Manufacturing) (1/3) By Geography (%) Q3 FY22 Q2 FY22 Q3 FY21 Americas 54.2% 52.8% 53.1% Europe, Middle East, Africa 28.1% 27.5% 28.2% Asia Pacific (including India) 17.8% 19.7% 18.6% By Business Unit (%) Q3 FY22 Q2 FY22 Q3 FY21 Transportation total 36.9% 38.4% 3

  42. Slide 42: Cyient Metrics (Excluding DLM) (2/3)

    Cyient Metrics (Excluding Design Led Manufacturing) (2/3) Currency Mix (%) Q3 FY22 Q2 FY22 Q3 FY21 USD 53.9% 50.8% 52.3% EURO 11.9% 13.1% 14.4% GBP 9.4% 9.4% 9.7% AUD 10.9% 13.4% 12.0% Others 13.9% 13.4% 11.6% Utilization (%) Q3 FY22 Q2 FY22 Q3 FY21 Utilization 86.2% 85.0% 80.9% Account Receivables

  43. Slide 43: Cyient Metrics (Excluding DLM) (3/3)

    Cyient Metrics (Excluding Design Led Manufacturing) (3/3) Top Clients: Revenue Contribution (%) Q3 FY22 Q2 FY22 Q3 FY21 Top 5 31.5% 33.0% 35.3% Top 10 44.3% 45.6% 47.0% No. of Million $ Clients Q3 FY22 Q2 FY22 Q3 FY21 20 Mn+ 3 3 3 10 Mn+ 10 10 8 5 Mn+ 27 24 23 1 Mn+ 77 76 77 New Clients Added 10 17

  44. Slide 44: Cyient Metrics (Design Led Manufacturing)

    Cyient Metrics (Design Led Manufacturing) © CYIENT 2021 | Confidential 19

  45. Slide 45: Cyient Metrics (Design Led Manufacturing) (1/3)

    Cyient Metrics (Design Led Manufacturing) (1/3) Income Statement - Abridged (In ₹ Mn) Q3 FY22 Q2 FY22 Q3 FY21 Net Revenue 2,161 1,888 1,921 Direct Salaries & other costs 291 278 270 Material Cost 1,578 1,330 1,319 Gross Profit 292 280 333 SG&A 96 85 64 Depreciation & amortisation 66 67 65 EBIT 130 1

  46. Slide 46: Cyient Metrics (Design Led Manufacturing) (2/3)

    Cyient Metrics (Design Led Manufacturing) (2/3) By Business Unit (%) Q3 FY22 Q2 FY22 Q3 FY21 Transportation total 74.6% 65.3% 66.6% Aerospace 73.8% 63.0% 65.0% Rail transportation 0.7% 2.3% 1.6% C&U total 0.3% 0.2% 0.2% Communications 0.3% 0.2% 0.2% Utilities 0.0% 0.0% 0.0% Portfolio total 25.1% 34.

  47. Slide 47: Cyient Metrics (Design Led Manufacturing) (3/3)

    Cyient Metrics (Design Led Manufacturing) (3/3) No. of Million $ Clients Q3 FY22 Q2 FY22 Q3 FY21 5 Mn+ 9 8 7 2 Mn+ 11 12 12 1 Mn+ 16 16 12 New Clients Added 1 1 0 Key Operational Metrics Q3 FY22 Q2 FY22 Q3 FY21 Headcount 672 672 628 DSO (in Days) 90 91 68 DPO (in Days) 70 111 75 Customer Advance (in

  48. 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

  49. 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

  50. Slide 50: Connect With Us

    #DesigningTomorrowTogether Connect cyient.com With Us Follow us on © CYIENT 2021 | Confidential

Cyient — Q3 FY22 Earnings Presentation on 6ix