Slide 1: Covering letter to stock exchanges
25 January 2024 BSE Limited 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 issued by the co
Slide 2: Investor Presentation Q3 FY24
INVESTOR PRESENTATION Q3 FY24
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 KARTHIK NATARAJAN PRABHAKAR ATLA Executive Vice-Chairman & Executive Director & CEO President & CFO Managing Director © CYIENT 2024 | Confidential 3
Slide 5: Business Highlights for the Group
Business Highlights Financial Highlights DET Business Update • Business Highlights for • DET (Digital, Engineering & • BU performance the Group Technology) • Business Outlook • Group • Innovative Technology Solutions and Programs Annexures © CYIENT 2024 | Confidential 4
Slide 6: Business Highlights for the Group
Business Highlights Financial Highlights DET Business Update • Business Highlights for • DET (Digital, Engineering & • BU performance the Group Technology) • Business Outlook • Group • Innovative Technology Solutions and Programs Annexures © CYIENT 2024 | Confidential 5
Slide 7: Update | civil class action lawsuit
Update | civil class action lawsuit • Cyient Inc. has entered into an agreement to settle, and dismiss with prejudice, the civil class action antitrust lawsuit for an amount of US$7.4 million • The settlement is without admission of any liability and the plaintiffs have agreed to release and dischar
Slide 8: Business Highlights for the Quarter
Business Highlights for the QuarteR Cyient + SkyDrive Inc. CyientifIQ* Experience Center (CEC) • SkyDrive Inc. - Japan’s leading eVTOL • Experiential demonstration of 100+ manufacturer intelligent engineering and technology solutions built in collaboration with 10+ • Urban Air Mobility (UAM) offers
Slide 9: Financial Highlights
Business Highlights Financial Highlights DET Business Update • Business Highlights for • DET (Digital, Engineering & • BU performance the Group Technology) • Business Outlook • Group • Innovative Technology Solutions and Programs Annexures © CYIENT 2024 | Confidential 8
Slide 10: Glossary
GLOSSARY • Cyient Group Business Segments: • Cyient DET: Digital, Engineering & Technology • Cyient DLM • Cyient Others^ • Cyient DET: Consolidated Services + Engineering Parts business* • Transportation: Aerospace + Rail Transportation • Connectivity: Communications • Sustainability: Mining, Energy
Slide 11: Financial Highlights for the Quarter | DET
Financial Highlights for the Quarter | DET 179.2M$ 1,491cr₹ 16.0% Revenue ($) Revenue (₹) EBIT^ +1.1% cc QoQ | +5.4% cc YoY +1.0% QoQ | +8.1% YoY -53 bps QoQ | +205 bps YoY 173Cr₹ 15.74₹ 192cr₹ PAT^ EPS^ FCF 0.0% QoQ | +11.5% YoY -0.2% QoQ | +11.1% YoY +25.1% QoQ | +51.3% YoY ^EBIT, PAT and EPS excl
Slide 12: Financial Highlights for the Quarter | GROUP
Financial Highlights for the Quarter | GROUP 218.8M$ 1,822cr₹ 14.3% Revenue ($) Revenue (₹) EBIT^ +10.1% cc YoY +12.6% YoY +138 bps YoY 186Cr₹ 16.92₹ 160cr₹ PAT^ EPS^ FCF +14.1% YoY +13.7% YoY +38.4% YoY ^EBIT, PAT and EPS exclude the impact of exceptional item. Refer slide 15 of annexures for detai
Slide 13: DET Business Update
Business Highlights Financial Highlights DET Business Update • Business Highlights for • DET (Digital, Engineering & • BU performance the Group Technology) • Business Outlook • Group • Innovative Technology Solutions and Programs Annexures © CYIENT 2024 | Confidential 12
Slide 14: BU Performance for the Quarter
BU Performance for the Quarter Revenue US$ Mn Q3 FY24 QoQ (cc) QoQ ($) YoY (cc) YoY ($) * Transportation 53.8 -2.2% -2.6% 16.9% 17.3% Connectivity 41.3 0.2% -0.5% -13.9% -12.1% Sustainability 53.2 8.2% 7.4% 22.1% 24.3% New Growth Areas 30.8 -3.4% -4.0% -5.5% -4.4% DET 179.2 1.1% 0.4% 5.4% 6.7% Order
Slide 15: Business Performance & Outlook
BUSINESS PERFORMANCE & OUTLOOK 14
Slide 16: Business Performance & Outlook
BUSINESS PERFORMANCE & OUTLOOK The current market environment is characterized by a rapid pace of technological advancement and a growing demand for innovative, smarter, and more efficient solutions. Customers are increasingly recognizing the need to adapt to new-age technologies and integrate them
Slide 17: Innovative Technology Solutions and Programs (1/2)
Innovative Technology Solutions and Programs (1/2) Trends Technology Solutions / Programs Connected car (Software-defined Vehicles), Design, Develop and Test algorithms for L2 and l3 level on their Vehicles, V&V, Autonomous HIL and SIL Testing. Systems & Processes 3 large programs on Digital Enginee
Slide 18: Innovative Technology Solutions and Programs (2/2)
Innovative Technology Solutions and Programs (2/2) Trends Technology Solutions / Programs CyientifiQ EnGeneer: Enable organizations in distributing the contextual content to various stakeholders in human like natural language using open AI APIs CyVision: Video intelligence platform that enables to i
Slide 19: Outlook
OUTLOOK • For FY24, we expect DET revenue growth to be tad lower than our earlier guided range. We expect it to be in the range of 13% - 13.5% YoY in constant currency terms • We expect FY24 DET normalized* EBIT margins to improve by 200 – 250 bps YoY *Normalized EBIT excludes the impact of exceptio
Slide 20: About Cyient
ABOUT CYIENT Cyient (Estd: 1991, NSE: CYIENT) partners with over 300 customers, including 40% of the top 100 global innovators, to deliver intelligent engineering and technology solutions for creating a digital, autonomous, and sustainable future. As a company, Cyient is committed to designing a cul
Slide 21: 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 22: Connect With Us
#DesigningTomorrowTogether Connect www.cyient.com With Us Follow us on © CYIENT 2024 | Confidential 21
Slide 23: Annexure
INVESTOR PRESENTATION ANNEXURE Q3 FY24
Slide 24: Message from the Management
Message from the Management Commenting on the results, Mr. Krishna Bodanapu, Executive Vice Chairman and Managing Director, said “Cyient Group witnessed positive Q3 FY24 results, with quarterly Group revenue at $218.8 Mn, growth of 10.1% YoY in constant currency. Cyient’s Digital, Engineering and Te
Slide 25: Message from the Management
Message from the Management Commenting on the results, Mr. Prabhakar Atla, President and Chief Financial Officer, said, “Q3 FY24 was a good quarter for us with well-rounded performance in line with our expectations across key metrics. We achieved our highest ever revenue for quarter with a growth of
Slide 26: Glossary
GLOSSARY • Cyient Group Business Segments: • Cyient DET: Digital, Engineering & Technology • Cyient DLM • Cyient Others^ • Cyient DET: Consolidated Services + Engineering Parts business* • Transportation: Aerospace + Rail Transportation • Connectivity: Communications • Sustainability: Mining, Energy
Slide 27: DET Metrics
DET METRICS 5
Slide 28: DET Income Statement
DET INCOME STATEMENT DET Income Statement ₹ Mn Q3 FY24 Q2 FY24 Q3 FY23 Operating Revenue ($ Mn) 179.2 178.4 167.9 Operating Revenue (₹ Mn) 14,914 14,762 13,796 Cost of Revenue 8,954 8,825 8,064 Gross profit 5,961 5,937 5,732 Gross margin % 40.0% 40.2% 41.5% Sales and Marketing 621 574 501 General an
Slide 29: DET Other Income
DET OTHER INCOME Other Income (₹ Mn) DET Q3 FY24 Q2 FY24 Q3 FY23 Income from Investments 64 81 50 Realised gains/(losses) on Fwd Contracts -9 -28 21 Unrealised Fx gains/(losses) 165 -80 169 Others -125 70 37 Total 94 43 277 © CYIENT 2024 | Confidential 7
Slide 30: DET Cash Generation for the Quarter
DET CASH GENERATION FOR THE QUARTER Cash Flow Summary (₹ Mn) DET Q3 FY24 Q2 FY24 Q3 FY23 Profit before tax (Reported) 1,744 2,197 1,897 (+/-) Non-cash & non-operating items 911 782 847 Operating profit before WC changes 2,655 2,979 2,744 (+/-) DSO Movement (Receivables) -59 -796 -593 (+/-) Other WC
Slide 31: DET Cash Position for the Quarter
DET CASH POSITION FOR THE QUARTER Cash Position (₹ Mn) DET Q3 FY24 Q2 FY24 Q3 FY23 Cash & Cash Equivalent including treasury investments 8,171 8,242 7,534 Cash & Bank balances 4,948 4,625 4,888 Investments in FDs 506 141 118 Investment in MFs and Commercial Papers 647 1,131 466 Other treasury invest
Slide 32: DET Hedge Book
DET HEDGE BOOK Value in Respective Outstanding ForwardContracts Currency Mn. Booked Rate (in ₹) for next 12 Months 0.3 (2.9) 31-Dec-23 30-Sep-23 31-Dec-22 153 1.1 103.0 105.9 92.4 92.1 0.0 84.3 83.1 2.2 95 82 62.9 62.9 70 59.0 56.8 54 43 31 27 14 20 18 14 2 4 7 6 9 7 USD EUR GBP CAD AUD Total (USD)
Slide 33: DET Other Metrics (1/2)
DET OTHER METRICS (1/2) Revenue by Geography (%) DET Q3 FY24 Q2 FY24 Q3 FY23 Americas 43.9% 43.0% 48.1% Europe, Middle East, Africa 35.0% 33.4% 32.8% Asia Pacific (including India) 21.1% 23.6% 19.0% Revenue by Currency (%) DET Q3 FY24 Q2 FY24 Q3 FY23 USD 44.0% 43.5% 47.1% EURO 20.7% 19.0% 19.7% GBP
Slide 34: DET Other Metrics (2/2)
DET OTHER METRICS (2/2) Employees DET Q3 FY24 Q2 FY24 Q3 FY23 Total Headcount 15,678 15,438 14,693 Technical & Pool 14,519 14,384 13,813 Non-Technical 505 470 360 Support 654 584 520 Voluntary Attrition (LTM) 18.4% 20.4% 27.2% Top Clients: Revenue Contribution (%) DET Q3 FY24 Q2 FY24 Q3 FY23 Top 5 2
Slide 35: Group Balance Sheet & Income Statement
Group Balance Sheet & Income Statement 13
Slide 36: Extract of Group Balance Sheet
Extract of Group Balance Sheet Group Balance Sheet ₹ Mn Q3FY24 Q2FY24 Q3FY23 Foreign Exchange Rate EQUITY AND LIABILITIES $/₹ Q3 FY24 Q2 FY24 Q3 FY23 Shareholders’ funds - Share capital 554 554 544 Average 83.24 82.74 82.15 - Other equity and Non-controlling interest 43,432 42,751 31,973 Closing 83.
Slide 37: Group Income Statement
GROUP INCOME STATEMENT Income Statement ₹ Mn Q3 FY24 Q2 FY24 Q3 FY23 Operating Revenue ($ Mn) 218.8 214.9 197.0 Operating Revenue (₹ Mn) 18,215 17,785 16,182 Cost of Revenue 11,759 11,434 10,063 Gross profit 6,456 6,351 6,119 Gross margin % 35.4% 35.7% 37.8% Sales and Marketing 634 608 512 General a
Slide 38: EBIT and PAT Walk – Reported to Normalized
EBIT and PAT Walk – Reported to Normalized EBIT Walk ₹ Mn Q3 FY24 Q2 FY24 Q3 FY23 PAT Walk ₹ Mn Q3 FY24 Q2 FY24 Q3 FY23 Reported EBIT (Group) 2,097 2,537 1,993 Reported PAT (Group) 1,472 1,783 1,560 Reported EBIT (DET) 1,883 2,377 1,832 Reported PAT (DET) 1,342 1,680 1,482 Add: Exceptional Item Add:
Slide 39: About Cyient
ABOUT CYIENT Cyient (Estd: 1991, NSE: CYIENT) partners with over 300 customers, including 40% of the top 100 global innovators, to deliver intelligent engineering and technology solutions for creating a digital, autonomous, and sustainable future. As a company, Cyient is committed to designing a cul
Slide 40: 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 41: Connect With Us
#DesigningTomorrowTogether Connect www.cyient.com With Us Follow us on © CYIENT 2024 | Confidential 19