Cyient Limited · NSE:CYIENT
Cyient — Q4 FY23 Earnings Presentation
32 slides from Cyient's earnings presentation, April 2023
Slide 1: Investor Presentation Q4 FY23 and FY23
INVESTOR PRESENTATION © CYIENT 2023 | Confidential Q4 FY23 and FY23
Slide 2: 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 3: Leadership Team
Leadership Team KRISHNA BODANAPU KARTHIK NATARAJAN AJAY AGGARWAL PRABHAKAR ATLA Executive Vice-Chairman & Executive Director & CEO CFO CFO © CYIENT 2023 | Confidential Managing Director 3
Slide 4: Glossary
Glossary • Core Services: Organic Services business of Cyient • Consolidated Services: Core Services + FY23 acquisitions • Group: Consolidated Services + DLM • Transportation: Aerospace + Rail Transportation • Connectivity: Communications • Sustainability: Mining, Energy & Utilities • New Growth Are
Slide 5: Highlights, Financial Update, Business Update
Highlights Financial Update Business Update • Revenue • BU performance update • Operational Summary • Financial Highlights • Income statement update • Business Highlights • Margin bridge • Cash generation © CYIENT 2023 | Confidential Annexures 5
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 2023 | Confidential Annexures 6
Slide 7: Disclaimer
Disclaimer • Cyient Ltd’s subsidiary, Cyient DLM Limited has filed a draft red herring prospectus (DRHP) dated January 9th, 2023 with the Securities and Exchange Board of India, BSE and NSE in connection with its proposed IPO • The markets regulator, Securities and Exchange Board of India (SEBI), ha
Slide 8: Highlights for the Quarter
Highlights for the Quarter Financial Highlights for the Quarter 48.3% YoY / 8.2% QoQ (₹ terms) 39.1% YoY / 6.6% QoQ (CC terms) • Group revenue at $213.0 Mn; growth of 39.1% cc YoY Revenue 35.9% YoY / 8.1% QoQ (US$ terms) (35.9% in US$) and 6.6% cc QoQ (8.1% in US$) Quarterly revenue at ₹17,514Mn/$21
Slide 9: Highlights for the Year
Highlights for the Year 32.7% YoY (INR terms) Financial Highlights for the Year 26.9% YoY (CC terms) Revenue • Group revenue at $746.3 Mn; growth of 26.9% cc YoY 22.7% YoY (US$ terms) (22.7% in US$) Annual revenue at ₹60,159Mn/$746.3Mn • Group revenue at ₹60,159 Mn; growth of 32.7% YoY • Consolidate
Slide 10: Highlights for the Quarter
Highlights for the Quarter Global partnership between Cyient and Thingtrax Cyient and iBASEt Inaugurate Center of Excellence (CoE) to Drive Digital Innovation in Aerospace and Heavy Equipment Industries • Help customers to improve efficiency and reduce operational cost through AI-powered data by imp
Slide 11: 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 2023 | Confidential Annexures 11
Slide 12: Revenue for Q4 FY23
Revenue for Q4 FY23 Revenue Q4 FY23 QoQ YoY Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 Revenue Group • Group revenue growth at $ Mn 213.0 8.1% 35.9% 197.0 174.8 161.6 156.7 39.1% cc YoY and 6.6% cc CC growth 6.6% 39.1% QoQ ₹ Mn 17,514 8.2% 48.3% 16,182 13,962 12,501 11,812 • Consolidated Services revenue growt
Slide 13: Revenue for FY23
Revenue for FY23 Revenue FY23 YoY FY22 FY21 FY20 FY19 Revenue Group • Group growth at 26.9% cc YoY $ Mn 746.3 22.7% 608.2 556.8 625.3 660.0 • Consolidated Services CC growth 26.9% growth at 30.2% cc YoY. ₹ Mn 60,159 32.7% 45,344 41,324 44,274 46,175 Core Services revenue Consolidated Services growth
Slide 14: Hedge Book
Hedge Book Value in Respective Outstanding ForwardContracts Currency Mn. Booked Rate (in ₹) for next 12 Months 31-Mar-23 31-Dec-22 31-Mar-22 Wgt.Avg 154 153 154 (0.6) Variance of (0.9) 1.2 0.7 99.8 100.5 82.9 82.2 87.9 88.9 2.1 0.7 81 82 75 62.9 60.7 57.0 56.3 29 31 30 27 27 28 20 18 18 7 7 7 USD EU
Slide 15: Income statement for Q4 FY23
Income statement for Q4 FY23 All Figures in ₹ Mn Q4 FY23 Q3 FY23 Q4 FY22 QoQ EBITDA and EBIT Movement Revenue 17,514 16,182 11,812 • Normalised Core Services EBIT margin is the highest in last 40 EBITDA (Reported) 3,058 2,694 2,137 quarters at 16.1%; up by 103 bps QoQ due to price hikes and EBITDA (
Slide 16: Income statement for FY23
Income statement for FY23 All Figures in ₹ Mn FY23 FY22 YoY EBITDA and EBIT Movement Revenue 60,159 45,344 EBITDA (Reported) 9,564 8,219 • Normalised Core Services EBIT margin at 14.2%; down by 110 bps YoY due to impact of merit increase and higher SG&A spend offset by EBITDA (Normalised)^ 10,244 8,
Slide 17: PAT and EBIT Walk Q4 FY23 – Reported to Normalized
PAT and EBIT Walk Q4 FY23 – Reported to Normalized EBIT walk - Reported to Normalised (₹Mn) ₹ Mn Note Q4 FY23 Q3 FY23 Q4 FY22 Q4 Note Particulars Description ₹ Mn Reported EBIT (Group) 2,332 1,995 1,708 Margin (%) 13.3% 12.3% 14.5% Legal fees paid in relation to Exceptional 162 the civil class actio
Slide 18: PAT and EBIT Walk FY23 – Reported to Normalized
PAT and EBIT Walk FY23 – Reported to Normalized EBIT walk - Reported to Normalised (₹Mn) ₹ Mn Note FY23 FY22 FY23 Note Particulars Description ₹ Mn Reported EBIT (Group) 6,998 6.297 Legal fees paid in relation to Margin (%) 11.6% 13.9% Exceptional 467 the civil class action antitrust 1 Reported EBIT
Slide 19: EBIT Margin Bridge for Q4 FY23 & FY23
EBIT Margin Bridge for Q4 FY23 & FY23 Particulars Q3 FY23 Q4 FY23 Particulars FY22 FY23 Group EBIT Margin (Reported) 12.3% 13.3% Group EBIT Margin (Reported) 13.9% 11.6% Consolidated Services EBIT Margin (Reported) 13.3% 14.0% Consolidated Services EBIT Margin (Reported) 15.3% 12.4% Exceptional item
Slide 20: Cash Generation for Q4 FY23 & FY23
Cash Generation for Q4 FY23 & FY23 All Figures in ₹ Mn Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22 Cash Generation Consolidated Services • Cash and cash equivalents, including long- Profit before tax 1,797 1,897 1,884 6,139 6,547 term treasury investments, at ₹10,772 Mn at (+/-) Non-cash & non-operating items
Slide 21: 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 2023 | Confidential Annexures 21
Slide 22: BU Performance Q4 FY23
BU Performance Q4 FY23 Revenue US$ Mn Q4 FY23 QoQ (cc) QoQ ($) YoY (cc) YoY ($) • Consolidated Services growth stood at 3.2% cc QoQ and 4.9% in US$ Transportation 52.0 12.9% 13.4% 13.1% 10.4% terms Connectivity 46.5 -3.3% -1.2% 27.7% 23.9% o Transportation witnessed Sustainability 45.4 3.1% 6.1% 125
Slide 23: BU Performance FY23
BU Performance FY23 Revenue US$ Mn FY23 YoY (cc) YoY ($) • Consolidated Services growth stood at 30.2% in cc and 25.6% in US$ terms Transportation 188.9 2.6% -0.2% o Transport witnessed growth of 2.6% cc Connectivity 181.4 32.1% 27.4% YoY Sustainability 139.5 86.7% 79.4% o Communications witnessed g
Slide 24: Business Performance & Outlook
BUSINESS PERFORMANCE & OUTLOOK © CYIENT 2023 | Confidential 24
Slide 25: Business Performance & Outlook
Business Performance & Outlook The Markets continue to be volatile and news continues to be dominated by geopolitical changes, soaring wage inflation, higher interest rates, talent shortage, and potential signs of economic slowdown. Notwithstanding, Engineering companies are on innovation spree with
Slide 26: Innovative Technology Solutions and Programs (1/2)
Innovative Technology Solutions and Programs (1/2) Trends Technology Solutions / Programs Intelligent & CyMedge - Accelerated Smart and Connected Device Dev: A flexible, scalable and re-usable pre-validated SW/HW platform/framework based on Cyient’s Middleware Connected SW and off-the-shelf HW. Leve
Slide 27: Innovative Technology Solutions and Programs (2/2)
Innovative Technology Solutions and Programs (2/2) Trends Technology Solutions / Programs CyFAST - V&V Factory: Cyient’s Framework for Automated System and Software Testing (CyFAST) is an AI-powered end-to-end multi-platform test integration and automation platform that simulates business use cases
Slide 28: Outlook
Outlook • In FY24, we expect Consolidated Services revenue growth to be in the range of 15 – 20% YoY in constant currency terms • We expect FY24 Consolidated Services normalized EBIT margins to improve by 100 – 200 bps YoY © CYIENT 2023 | Confidential 28 #Normalized EBIT is excluding exceptional ite
Slide 29: Thank You Ajay
© CYIENT 2023 | Confidential THANK YOU AJAY 29
Slide 30: 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 31: 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 32: Connect With Us
#DesigningTomorrowTogether Connect cyient.com With Us Follow us on © CYIENT 2023 | Confidential