Slide 1: Investor Presentation filing letter to BSE and NSE
CYIENT 12 January 2023 The BSE Limited The National Stock Exchange of India Ltd PJ Towers, 25*" 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
Slide 2: Q3 FY23 Investor Presentation
© CYIENT 2023 | Confidential Q3 FY23 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 AJAY AGGARWAL KARTHIK NATARAJAN Managing Director & CEO Executive Director & CFO Executive Director & COO © CYIENT 2023 | Confidential 3
Slide 5: Agenda
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 4
Slide 6: Agenda
Highlights Financial Update Business Update • Revenue • BU performance update • Financial Highlights • Business Highlights • Income statement update • Margin bridge • Cash generation © CYIENT 2023 | Confidential Annexures 5
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. • As we are in the SEBI mandated quiet period, the management will not be
Slide 8: Highlights for the Quarter
Highlights for the Quarter Financial Highlights for Quarter 36.7% YoY / 15.9% QoQ (INR terms) • Group revenue at $197.0 Mn; growth of 28.6% cc YoY 28.6% YoY / 13.4% QoQ (CC terms) (24.8% in USD) and 13.4% cc QoQ (12.7% in USD) Revenue 24.8% YoY / 12.7% QoQ (USD terms) • Group revenue at ₹16,182 Mn;
Slide 9: Highlights for the Quarter
Highlights for the Quarter Cyient Reinforces its Position as a Major Contender in Everest's Industry 4.0 Services PEAK Matrix® Assessment 2022 • The PEAK Matrix is a proprietary framework for assessing service providers' relative market success and overall capability based on performance, experience
Slide 10: Agenda
Highlights Financial Update Business Update • Revenue • BU performance update • Financial Highlights • Business Highlights • Income statement update • Margin bridge • Cash generation © CYIENT 2023 | Confidential Annexures 9
Slide 11: Revenue for Q3 FY23
Revenue for Q3 FY23 Revenue Q3 FY23 QoQ YoY Q2 FY23 Q1 FY23 Q4 FY22 Q3 FY22 Revenue Group • Group growth at 28.6% cc $ Mn 197.0 12.7% 24.8% 174.8 161.6 156.7 157.9 YoY and 13.4% QoQ CC growth 13.4% 28.6% • Services growth at 34.4% ₹ Mn 16,182 15.9% 36.7% 13,962 12,501 11,812 11,834 cc YoY and 11.9%
Slide 12: Hedge Book
Hedge Book Value in Respective Outstanding ForwardContracts Currency Mn. Booked Rate (in ₹) for next 12 Months Wgt.Avg 31-Dec-22 30-Sep-22 31-Dec-21 4.9 Variance of 153150157 2.1 2.0 (0.4) 101.4 96.5 2.3 81.0 81.5 85.7 83.7 2.2 82 82 75 62.5 60.2 56.6 54.4 31 29 32 27 27 29 18 18 20 7 7 7 USD EUR GB
Slide 13: Income statement for Q3 FY23
Income statement for Q3 FY23 All Figures in ₹ Mn Q3 FY23 Q2 FY23 Q3 FY22 QoQ EBITDA and EBIT Movement Revenue 16,182 13,962 11,834 • Normalised services EBIT margin excluding acquisitions at EBITDA (Reported) 2,692 1,864 2,129 15.1%; up by 185 bps QoQ due to improvement in EBITDA (Normalised)^ 2,783
Slide 14: PAT and EBIT Walk – Reported to Normalized
PAT and EBIT Walk – Reported to Normalized EBIT walk - Reported to Normalised (₹Mn) ₹ Mn Note Q3 FY23 Q2 FY23 Q3 FY22 Q3 Note Particulars Description ₹ Mn Reported EBIT (Group) 1,993 1,234 1,642 Legal fees paid in relation to Margin (%) 12.3% 8.8% 13.9% Exceptional 89 the civil class action antitrus
Slide 15: EBIT Margin Bridge for Q3 FY23
EBIT Margin Bridge for Q3 FY23 Particulars Q2 FY23 Q3 FY23 Group EBIT (Reported) 8.8% 12.3% Services EBIT (Reported) 8.9% 13.3% Exceptional items and One off M&A expenses 3.5% 0.7% Services EBIT (Normalised) 12.5% 13.9% Less: Acquisitions' impact -0.7% -1.1% Services EBIT w/o acquisitions (Normalise
Slide 16: Cash Generation for Q3 FY23
Cash Generation for Q3 FY23 All Figures in ₹ Mn Q3 FY23 Q2 FY23 Q3 FY22 Cash Generation Services • Cash and cash equivalents, including long-term Profit before tax 1,897 949 1,692 treasury investments, at ₹8,694 Mn at the end of (+/-) Non-cash & non-operating items 847 796 395 Q3FY23 compared to ₹13
Slide 17: Agenda
Highlights Financial Update Business Update • Revenue • BU performance update • Financial Highlights • Business Highlights • Income statement update • Margin bridge • Cash generation © CYIENT 2023 | Confidential Annexures 16
Slide 18: BU Performance Q3 FY23
BU Performance Q3 FY23 Revenue $ Mn Q3 FY23 QoQ (cc) QoQ ($) YoY (cc) YoY ($) • Services growth stood at 11.9% cc QoQ and 11.2% in USD terms ARC 86.7 1.7% 0.8% 8.6% 4.6% o ARC witnessed growth of 1.7% Aerospace 35.5 4.4% 3.7% 8.1% 6.3% cc QoQ Rail transportation 10.4 -4.9% -6.0% -21.0% -27.1% o MEU
Slide 19: Business Performance & Outlook
BUSINESS PERFORMANCE & OUTLOOK © CYIENT 2023 | Confidential 18
Slide 20: Business Performance & Outlook (1/2)
Business Performance & Outlook (1/2) The markets continue to be dynamic considering the current geopolitical situation, high inflation, rising interest rates, higher energy prices, Supply Chain constraints etc. However, the globalization of R&D activities, the rising demand for integrating the lates
Slide 21: Business Performance & Outlook (2/2)
Business Performance & Outlook (2/2) MEU Mining: Global efforts to decarbonize and Energy transition efforts drive demand for iron ore, zinc, cobalt, copper etc. This increased demand emphasizes the need for Intelligent, Safe and Sustainable Mine Operations. Opportunities are arising from Automation
Slide 22: Innovative Technology Solutions and Programs
Innovative Technology Solutions and Programs Trends Technology Solutions / Programs SBC (Single Board Computing Platform): A flexible, scalable and re-usable pre-validated SW/HW platform/framework based on Cyient’s Middleware SW and off the shelf HW. Leveraged as “accelerator” to support low risk an
Slide 23: Outlook
Outlook • We see good momentum in our organic business and our Q4 organic revenue in constant currency will be higher than Q3 driven by growth in Aerospace, Mining, Comms & Automotive • We will add 14-15% in FY23 revenue due to acquisitions in constant currency • We expect FY23 normalized EBIT margi
Slide 24: 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 25: 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 26: Connect With Us
#DesigningTomorrowTogether Connect cyient.com With Us Follow us on © CYIENT 2023 | Confidential
Slide 27: Annexure Q3 FY23
INVESTOR PRESENTATION © CYIENT 2023 | Confidential Annexure Q3 FY23
Slide 28: Message from the Management
Message from the Management Commenting on the results, Mr. Krishna Bodanapu, Managing Director and Chief Executive Officer, said “Cyient witnessed positive Q3 FY23 results, with revenue at $197.0Mn, a growth of 13.4% QoQ, and 28.6% YoY in constant currency. The services revenue was $167.9Mn an incre
Slide 29: Message from the Management
Message from the Management Commenting on the results, Mr. Ajay Aggarwal, Executive Director & CFO, said, “I am pleased to share that we have witnessed strong revenue growth on an organic basis coupled with full impact of all the four acquisitions. Group revenue stood at $197.0 Mn, this is a growth
Slide 30: Consolidated Financial Metrics
Consolidated Financial Metrics Key Financial Metrics Growth % ₹ Mn Q3 FY23 Q2 FY23 Q3 FY22 QoQ YoY Revenue 16,182 13,962 11,834 15.9% 36.7% EBITDA (Reported) 2,692 1,864 2,129 44.4% 26.5% EBITDA margin (Reported) 16.6% 13.4% 18.0% 329 bps -135 bps EBITDA (Normalised) 2,783 2,291 2,129 21.4% 30.7% EB
Slide 31: Consolidated Revenue Segmentation
Consolidated Revenue Segmentation By Geography (%) Particulars Q3 FY23 Q2 FY23 Q3 FY22 Americas 47.6% 50.4% 49.2% Europe, Middle East, Africa 30.3% 26.0% 25.1% Asia Pacific (includes India) 22.1% 23.6% 25.7% By Business Unit (%) Particulars Q3 FY23 Q2 FY23 Q3 FY22 ARC total 53.0% 57.1% 66.1% Aerospa
Slide 32: Consolidated Operations Metrics
Consolidated Operations Metrics Account Receivables (in Days) Particulars Q3 FY23 Q2 FY23 Q3 FY22 DSO Total 76 85 77 - Billed 54 59 57 - Unbilled 22 26 20 Order Intake ($ Mn)^ Particulars Q3 FY23 Q2 FY23 Q3 FY22 Cyient Services 237 129 201 ^The Order Intake reported is the total value of all orders
Slide 33: Consolidated Client Metrics
Consolidated Client Metrics Top Clients: Revenue Contribution (%) Particulars Q3 FY23 Q2 FY23 Q3 FY22 Top 5 26.0% 25.2% 28.1% Top 10 36.7% 37.2% 41.7% No. of Million $ Clients Particulars Q3 FY23 Q2 FY23 Q3 FY22 20 Mn+ 6 4 3 10 Mn+ 12 12 10 5 Mn+ 38 37 36 1 Mn+ 97 98 93 © CYIENT 2023 | Confidential
Slide 34: Consolidated Employee Metrics
Consolidated Employee Metrics Employees Particulars Q3 FY23 Q2 FY23 Q3 FY22 Total Headcount 15,355 15,598 12,845 Technical & Pool 14,318 14,593 11,858 Non-Technical 433 420 347 Support 604 585 640 Voluntary Attrition (LTM)* 26.5% 28.4% 26.5% Notes: 1. Attrition is reported on LTM basis from Q1FY23.
Slide 35: Consolidated Other Financial Metrics
Consolidated Other Financial Metrics Cash Position (₹ Mn) Particulars Q3 FY23 Q2 FY23 Q3 FY22 Cash & Cash Equivalent including treasury 8,694 13,944 14,768 investments Cash & Bank balances 6,048 6,094 4,144 Investments in FDs 118 5,014 7,888 Investment in MFs 466 271 301 Treasury investments 2,062 2
Slide 36: Consolidated Income Statement
Consolidated Income Statement Income Statement ₹ Mn Q3 FY23 Q2 FY23 Q3 FY22 Operating Revenue 16,182 13,962 11,834 Cost of Revenue 10,063 8,595 7,533 Direct Salary and related costs 6,361 5,632 4,541 Direct Travel 139 164 111 Delivery Management 309 278 223 Material cost 1,741 1,282 1,578 Other cost
Slide 37: Extract of Consolidated Balance Sheet
Extract of Consolidated Balance Sheet Balance Sheet ₹ Mn Q3FY23 Q2FY23 Q3FY22 EQUITY AND LIABILITIES Shareholders’ funds - Share capital 544 552 551 - Reserves and surplus 31,973 31,230 28,913 Total - Shareholders' funds 32,517 31,782 29,464 Non-current liabilities - Long-term borrowings and liabili
Slide 38: Consolidated Cash Flow Movement
Consolidated Cash Flow Movement ₹ Mn Q3 FY23 Q2 FY23 Q3 FY22 Free cash flow from operations (Normalised) 1,157 682 1,596 Investment in non current investments 564 (626) (2,325) Settlement of purchase/deferred consideration (137) (4,668) (0) consideration pertaining to new/prior year acquisitions Int
Slide 39: Other Income
Other Income All Figures in ₹ Mn Q3FY23 Q2FY23 Q3 FY22 For the quarter Income from Treasury • Treasury income is lower due to utilization of Interest on Investments/Deposits 44 97 97 cash for acquisitions Dividend on Mutual Funds 6 5 8 Subtotal (A) 50 102 105 • Forward contract gain is ₹18 Mn, unfav
Slide 40: Cyient Metrics (Services)
© CYIENT 2023 | Confidential (Services) Cyient Metrics 14
Slide 41: Cyient Metrics (Services) (1/3)
Cyient Metrics (Services) (1/3) Onsite/offshore Split (%) By Geography (%) Particulars Q3 FY23 Q2 FY23 Q3 FY22 Particulars Q3 FY23 Q2 FY23 Q3 FY22 Americas 48.1% 50.7% 54.2% Onsite 53.9% 52.0% 50.1% Europe, Middle East, Africa 32.8% 28.0% 28.1% Offshore 46.2% 48.0% 49.9% Asia Pacific (including Indi
Slide 42: Cyient Metrics (Services) (2/3)
Cyient Metrics (Services) (2/3) Currency Mix (%) Particulars Q3 FY23 Q2 FY23 Q3 FY22 USD 56.9% 54.4% 53.9% EURO 9.2% 8.9% 11.9% GBP 7.8% 7.6% 9.4% AUD 10.1% 12.7% 10.9% Others 16.0% 16.4% 13.9% Utilization (%) Particulars Q3 FY23 Q2 FY23 Q3 FY22 Utilization 90.9% 84.6% 86.2% Account Receivables (in
Slide 43: Cyient Metrics (Services) (3/3)
Cyient Metrics (Services) (3/3) Top Clients: Revenue Contribution (%) Particulars Q3 FY23 Q2 FY23 Q3 FY22 Top 5 25.9% 28.9% 31.5% Top 10 35.8% 39.9% 44.3% No. of Million $ Clients Particulars Q3 FY23 Q2 FY23 Q3 FY22 20 Mn+ 6 4 3 10 Mn+ 12 12 10 5 Mn+ 31 30 27 1 Mn+ 84 85 77 New Clients Added 18 17 1
Slide 44: 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 45: 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 46: Connect With Us
#DesigningTomorrowTogether Connect cyient.com With Us Follow us on © CYIENT 2023 | Confidential