Slide 1: Cover letter to stock exchanges
25 July 2023 The BSE Limited 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 Presentation
Slide 2: Q1 FY24 Investor Presentation
© CYIENT 2023 | Confidential Q1 FY24 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 KARTHIK NATARAJAN PRABHAKAR ATLA Executive Vice-Chairman & Executive Director & CEO President & CFO © CYIENT 2023 | Confidential Managing Director 3
Slide 5: © CYIENT 2023 | Confidential
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 © CYIENT 2023 | Confidential Annexures 4
Slide 6: © CYIENT 2023 | Confidential
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 © CYIENT 2023 | Confidential Annexures 5
Slide 7: Business Highlights for the Quarter
Business Highlights for the Quarter Cyient DLM IPO US DoJ Case - Update ESG Update • Received overwhelming • Case against a Cyient • Dow Jones Sustainability response to the IPO – executive on grounds of Index (DJSI) - Benchmark Subscribed 71x times alleged violation of for sustainable business Sher
Slide 8: © CYIENT 2023 | Confidential
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 © CYIENT 2023 | Confidential Annexures 7
Slide 9: 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 10: Financial Highlights for the Quarter – DET
Financial Highlights for the Quarter – DET 177.1M$ 1,455cr₹ 16.1% Revenue (₹) EBIT^ Revenue ($) +0.3%* cc QoQ | +30.6% cc YoY +0.4% QoQ | +37.2% YoY +93 bps QoQ | +327 bps YoY 170Cr₹ 15.5₹ 176cr₹ 100.0% (108.9% conversion on PAT) PAT^ EPS^ FCF © CYIENT 2023 | Confidential +6.0% QoQ | +56.3% YoY +6.0
Slide 11: Financial Highlights for the Quarter - Group
Financial Highlights for the Quarter - Group 205.3M$ 1,687cr₹ 14.7% Revenue ($) Revenue (₹) EBIT^ +28.6% cc YoY +34.9% YoY +322 bps YoY 177cr₹ 16.1₹ 95cr₹ 100.0% (56.7% conversion on PAT) PAT^ EPS^ FCF © CYIENT 2023 | Confidential +52.2% YoY +51.9% YoY +59.9% YoY ^EBIT, PAT and EPS are excluding the
Slide 12: © CYIENT 2023 | Confidential
Business Highlights Financial Highlights DET Business Update • Business Highlights for • DET (Digital, Engineering & • BU performance the Group Technology) • Business Outlook • Group • Innovative Technology Solutions and Programs © CYIENT 2023 | Confidential Annexures 11
Slide 13: BU Performance for the Quarter
BU Performance for the Quarter Revenue US$ Mn Q1 FY24 QoQ (cc) QoQ ($) YoY (cc) YoY ($) * Transportation 53.8 3.2% 3.5% 19.0% 17.7% Connectivity 45.4 -2.4% -2.3% 13.3% 10.9% Sustainability 47.4 4.5% 4.4% 112.3% 109.0% New Growth Areas 30.5 -6.5% -5.9% 10.8% 9.9% DET 177.1 0.3% 0.5% 30.6% 29.2% Order
Slide 14: Business Performance & Outlook
BUSINESS PERFORMANCE & OUTLOOK © CYIENT 2023 | Confidential 13
Slide 15: Business Performance & Outlook
Business Performance & Outlook Increasing economic activity in emerging markets, investments around Green Transportation/Energy Transition/Defense & Security/Digital Health/Automotive, faster paced technology adoption and focus on decarbonization will facilitate the engineering services market growt
Slide 16: Innovative Technology Solutions and Programs (1/2)
Innovative Technology Solutions and Programs (1/2) Trends Technology Solutions / Programs Semi-autonomous drive, collision & obstacle avoidance for industrial construction equipment using its perception system. Autonomous Development and execution of automated test scripts to ensure quality and secu
Slide 17: Innovative Technology Solutions and Programs (2/2)
Innovative Technology Solutions and Programs (2/2) Trends Technology Solutions / Programs CyChat: Implementing conversational AI systems for distributing the contextual content to various stakeholders in human like natural language Generative CyVision: Video intelligence platform that enables to ide
Slide 18: Outlook
Outlook • In FY24, we expect DET revenue growth to be in the range of 15 – 20% YoY in constant currency terms • We expect FY24 DET normalized* EBIT margins to improve by 150 – 250 bps YoY © CYIENT 2023 | Confidential 17 *Normalized EBIT excludes the impact of exceptional items
Slide 19: About Cyient
About Cyient Cyient (Estd: 1991, NSE: CYIENT) is a global Digital, Engineering and Technology solutions company. We collaborate with our customers to design digital enterprises, build intelligent products and platforms and solve sustainability challenges. We are committed to designing tomorrow toget
Slide 20: 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 21: Connect With Us
#DesigningTomorrowTogether Connect cyient.com With Us Follow us on © CYIENT 2023 | Confidential
Slide 22: Annexure Q1 FY24
INVESTOR PRESENTATION © CYIENT 2023 | Confidential Annexure Q1 FY24
Slide 23: 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 Q1 FY24 results, with quarterly group revenue at $205.3 Mn, growth of 28.6% YoY in constant currency. Cyient Digital, Engineering & Technology (
Slide 24: Message from the Management
Message from the Management Commenting on the results, Mr. Prabhakar Atla, President and Chief Financial Officer, said, “Q1 FY24 witnessed a well-balanced performance in line with our expectations. DET revenue grew by 0.3% sequentially in cc terms and 30.6% YoY. DET EBIT margins, at 16.1%, were high
Slide 25: Glossary
Glossary • Cyient Group Business Segments: • Cyient DET: Digital, Engineering & Technology • Cyient DLM • Cyient Others^ • Cyient DET: Consolidated Services + Engineering Parts business* • Transportation: Aerospace + Rail Transportation • Connectivity: Communications • Sustainability: Mining, Energy
Slide 26: DET Metrics
© CYIENT 2023 | Confidential DET Metrics 5
Slide 27: DET Income Statement
DET Income Statement Income Statement ₹ Mn Q1 FY24 Q4 FY23 Q1 FY23 Operating Revenue ($ Mn) 177.1 176.2 137.1 Operating Revenue (₹ Mn) 14,546 14,489 10,604 Cost of Revenue 8,759 8,381 6,204 Gross profit 5,787 6,108 4,400 Gross margin % 39.8% 42.2% 41.5% Sales and Marketing 498 506 418 General and Ad
Slide 28: DET Cash Generation for the Quarter
DET Cash Generation for the Quarter Cash Flow Summary (₹ Mn) DET Q1 FY24 Q4 FY23 Q1 FY23 Profit before tax 2,102 1,797 1,496 (+/-) Non-cash & non-operating items 890 795 553 Operating profit before WC changes 2,992 2,592 2,049 (+/-) DSO Movement (Receivables) 91 -781 -1,323 (+/-) Other WC changes -7
Slide 29: DET Other Income
DET Other Income DET (₹ Mn) Q1FY24 Q4FY23 Q1FY23 Income from Investments 75 53 95 Realised gains/(losses) on Fwd Contracts -38 -47 144 Unrealised Fx gains/(losses) 119 -89 -25 Others -63 105 59 Other Income 93 22 273 Currency Q1 FY24 Q4 FY23 Q1 FY23 Movement Forward Spot Forward Spot Forward Spot US
Slide 30: DET Hedge Book
DET Hedge Book Value in Respective Outstanding Forward Contracts Currency Mn. Booked Rate (in ₹) for next 12 Months 30-Jun-23 31-Mar-23 30-Jun-22 154 152 (4.0) (1.0) 1.6 116 99.6 103.5 1.1 83.7 82.1 88.1 89.2 2.9 81 79 63.1 61.9 57.1 54.2 59 30 24 29 21 27 28 14 20 18 6 7 7 USD EUR GBP CAD AUD Total
Slide 31: DET Other Metrics (1/2)
DET Other Metrics (1/2) Revenue by Geography (%) DET Q1 FY24 Q4 FY23 Q1 FY23 Americas 43.2% 46.0% 53.0% Europe, Middle East, Africa 34.4% 34.4% 21.8% Asia Pacific (including India) 22.4% 19.6% 25.2% Onsite/offshore Revenue Split (%) DET Q1 FY24 Q4 FY23 Q1 FY23 Onsite 55.6% 55.6% 50.0% Offshore 44.4%
Slide 32: DET Other Metrics (2/2)
DET Other Metrics (2/2) Employees DET Q1 FY24 Q4 FY23 Q1 FY23 Total Headcount 15,306 15,172 13,581 Technical & Pool 14,386 14,263 12,599 Non-Technical 380 372 473 Support 540 537 509 Voluntary Attrition (LTM) 23.0% 25.7% 28.6% Top Clients: Revenue Contribution (%) DET Q1 FY24 Q4 FY23 Q1 FY23 Top 5 2
Slide 33: Group Balance Sheet & Income Statement
Group Balance Sheet & Income Statement © CYIENT 2023 | Confidential 12
Slide 34: Extract of Group Balance Sheet
Extract of Group Balance Sheet Balance Sheet ₹ Mn Q1FY24 Q4FY23 Q1FY23 Foreign Exchange Rate EQUITY AND LIABILITIES Shareholders’ funds $/₹ Q1 FY24 Q4 FY23 Q1 FY23 - Share capital 553 553 552 Average 82.15 82.23 77.37 - Other equity and Non-controlling interest 38,076 34,082 30,318 Total - Sharehold
Slide 35: Group Income Statement
Group Income Statement Income Statement ₹ Mn Q1 FY24 Q4 FY23 Q1 FY23 Operating Revenue ($ Mn) 205.3 213.0 161.6 Operating Revenue (₹ Mn) 16,865 17,514 12,501 Cost of Revenue 10,695 10,856 7,901 Gross profit 6,170 6,657 4,600 Gross margin % 36.6% 38.0% 36.8% Sales and Marketing 529 555 402 General an
Slide 36: EBIT and PAT Walk Q1 FY24 – Reported to Normalized
EBIT and PAT Walk Q1 FY24 – Reported to Normalized EBIT Walk ₹ Mn Q1 FY24 Q4 FY23 Q1 FY23 PAT Walk ₹ Mn Q1 FY24 Q4 FY23 Q1 FY23 Reported EBIT (Group) 2,369 2,332 1,435 Reported PAT (Group) 1,681 1,632 1,161 Reported EBIT (DET) 2,225 2,028 1,356 Reported PAT (DET) 1,617 1,478 1,089 Add: Exceptional I
Slide 37: About Cyient
About Cyient Cyient (Estd: 1991, NSE: CYIENT) is a global Digital, Engineering and Technology solutions company. We collaborate with our customers to design digital enterprises, build intelligent products and platforms and solve sustainability challenges. We are committed to designing tomorrow toget
Slide 38: 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 39: Connect With Us
#DesigningTomorrowTogether Connect cyient.com With Us Follow us on © CYIENT 2023 | Confidential