Slide 1: Exchange filing cover letter
20 April 2023 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 Investor Presenta
Slide 2: Investor Presentation Q4 FY23 and FY23
INVESTOR PRESENTATION © CYIENT 2023 | Confidential Q4 FY23 and FY23
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 AJAY AGGARWAL PRABHAKAR ATLA Executive Vice-Chairman & Executive Director & CEO CFO CFO © CYIENT 2023 | Confidential Managing Director 3
Slide 5: 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 6: © CYIENT 2023 | Confidential
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 7: © CYIENT 2023 | Confidential
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 8: 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 9: 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 10: 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 11: 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 12: © CYIENT 2023 | Confidential
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 13: 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 14: 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 15: 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 16: 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 17: 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 18: 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 19: 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 20: 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 21: 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 22: © CYIENT 2023 | Confidential
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 23: 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 24: 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 25: Business Performance & Outlook
BUSINESS PERFORMANCE & OUTLOOK © CYIENT 2023 | Confidential 24
Slide 26: 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 27: 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 28: 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 29: 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 30: Thank You
© CYIENT 2023 | Confidential THANK YOU AJAY 29
Slide 31: 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 32: 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 33: Connect With Us
#DesigningTomorrowTogether Connect cyient.com With Us Follow us on © CYIENT 2023 | Confidential
Slide 34: Annexure Q4 FY23 and FY23
INVESTOR PRESENTATION © CYIENT 2023 | Confidential Annexure Q4 FY23 and FY23
Slide 35: Message from the Management
Message from the Management Commenting on the results, Mr. Krishna Bodanapu, Executive Vice Chairman and Managing Director, said “Cyient witnessed positive Q4 FY23 results, with the highest quarterly group revenue at $213.0 Mn, growth of 6.6% QoQ, and 39.1% YoY in constant currency. The services rev
Slide 36: Message from the Management
Message from the Management Commenting on the results, Mr. Ajay Aggarwal, CFO, said, “Our performance is robust for Q4 and FY23 with many milestones and all-round performance on growth , profitability , cash and dividend payout. I thank our stakeholders for their trust and support during all the las
Slide 37: 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 38: Consolidated Operations Metrics
Consolidated Operations Metrics Account Receivables (in Days) Particulars Q4 FY23 Q3 FY23 Q4 FY22 DSO Total 78 76 78 - Billed 57 54 55 - Unbilled 21 22 23 Foreign Exchange Rate $/₹ Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22 Average 82.23 82.15 75.38 80.61 74.55 Closing 82.10 82.82 75.84 82.10 75.84 © CYIENT
Slide 39: Consolidated Employee Metrics
Consolidated Employee Metrics Employees Particulars Q4 FY23 Q3 FY23 Q4 FY22 Total Headcount 15,864 15,355 13,428 Technical & Pool 14,832 14,318 12,380 Non-Technical 493 433 446 Support 539 604 602 Voluntary Attrition (LTM)* 25.0% 26.5% 26.2% Note: Attrition is reported on LTM basis from Q1FY23. This
Slide 40: Consolidated Other Financial Metrics
Consolidated Other Financial Metrics Cash Position (₹ Mn) Particulars Q4 FY23 Q3 FY23 Q4 FY22 Cash & Cash Equivalent including treasury 10,772 8,694 15,689 investments Cash & Bank balances 6,847 6,048 4,413 Investments in FDs 347 118 8,253 Investment in MFs 1,290 466 704 Treasury investments and Com
Slide 41: Consolidated Income Statement
Consolidated Income Statement Income Statement ₹ Mn Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22 Operating Revenue 17,514 16,182 11,812 60,159 45,344 Cost of Revenue 10,856 10,063 7,293 37,415 28,455 Direct Salary and related costs 6,598 6,361 4,558 23,580 17,713 Direct Travel 167 139 95 607 370 Delivery Manag
Slide 42: Extract of Consolidated Balance Sheet
Extract of Consolidated Balance Sheet Balance Sheet ₹ Mn Q4FY23 Q3FY23 Q4FY22 EQUITY AND LIABILITIES Shareholders’ funds - Share capital 553 544 552 - Reserves and surplus 34,082 31,973 30,582 Total - Shareholders' funds 34,635 32,517 31,134 Non-current liabilities - Long-term borrowings and liabili
Slide 43: Consolidated Cash Flow Movement
Consolidated Cash Flow Movement ₹ Mn Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22 Free cash flow from operations (Normalised) 2,452 1,157 1,225 4,887 5,719 Investment in non current investments (263) 564 142 (134) (2,557) Settlement of purchase/deferred consideration (121) (137) (0) (8,989) (225) consideration
Slide 44: Other Income
Other Income All Figures in ₹ Mn Q4FY23 Q3FY23 Q4 FY22 FY23 FY22 For the quarter Income from Treasury • Forward contract loss is ₹47 Mn, unfavorable QoQ Interest on Investments/Deposits 39 44 134 271 473 movement of ₹65 Mn, mainly due to loss in USD; Dividend on Mutual Funds 13 6 4 29 12 lower gains
Slide 45: Cyient Metrics (Services)
© CYIENT 2023 | Confidential (Services) Cyient Metrics 12
Slide 46: Cyient Metrics (Services) (1/3)
Cyient Metrics (Services) (1/3) By Geography (%) Particulars Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22 Americas 46.0% 48.1% 55.5% 49.2% 53.7% Europe, Middle East, Africa 34.4% 32.8% 25.9% 29.7% 27.3% Asia Pacific (including India) 19.6% 19.0% 18.5% 21.1% 19.1% By Business Unit (%) Particulars Q4 FY23 Q3 FY2
Slide 47: Cyient Metrics (Services) (2/3)
Cyient Metrics (Services) (2/3) Currency Mix (%) Particulars Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22 USD 54.7% 56.9% 52.2% 54.8% 51.8% EURO 8.0% 9.2% 11.1% 7.9% 12.4% GBP 8.3% 7.8% 9.6% 9.1% 9.4% AUD 11.0% 10.1% 11.2% 11.6% 12.4% Others 17.9% 16.0% 15.9% 16.6% 14.0% Note: Above currency excludes the impac
Slide 48: Cyient Metrics (Services) (3/3)
Cyient Metrics (Services) (3/3) Top Clients: Revenue Contribution (%) Particulars Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22 Top 5 26.8% 25.9% 30.6% 28.2% 32.9% Top 10 36.1% 35.8% 42.6% 38.2% 45.2% No. of Million $ Clients Particulars Q4 FY23 Q3 FY23 Q4 FY22 20 Mn+ 7 6 3 10 Mn+ 14 12 11 5 Mn+ 31 31 25 1 Mn+
Slide 49: 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 50: 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 51: Connect With Us
#DesigningTomorrowTogether Connect cyient.com With Us Follow us on © CYIENT 2023 | Confidential