Cyient Limited · NSE:CYIENT
Cyient — Q2 FY21 Earnings Presentation
21 slides from Cyient's earnings presentation, 2020
Slide 1: Investor Presentation Q2 FY21
Investor PRESENTATION Q2 FY21 CYIENT © 2020 CONFIDENTIAL CYIENT © 2020 CONFIDENTIAL
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 BVR MOHAN REDDY KRISHNA BODANAPU AJAY AGGARWAL KARTHIK NATARAJAN Executive Chairman MD & CEO President & CFO President & COO CYIENT © 2020 CONFIDENTIAL 3
Slide 4: Highlights Financial Update
Financial Business Highlights Update Update • Financial Highlights • Revenue • BU performance update • Business Highlights • Income statement update • Margin bridge • Cash generation Annexures CYIENT © 2020 CONFIDENTIAL 4
Slide 5: Highlights Financial Update
Financial Business Highlights Update Update • Financial Highlights • Revenue • BU performance update • Business Highlights • Income statement update • Margin bridge • Cash generation Annexures CYIENT © 2020 CONFIDENTIAL 5
Slide 6: Highlights for the Quarter (1/3)
Highlights for the Quarter (1/3) Revenue Financial Highlights for Quarter • Consolidated revenue at $135.0 Mn; growth of 1.2% QoQ (₹ terms) 3.4% QoQ (1.3% in CC) and de-growth of 3.4% QoQ ($ terms) 17.8% YoY Quarterly revenue at • Services revenue at $114.1 Mn; growth of $135.0Mn/₹10,033Mn 1.7% QoQ
Slide 7: Highlights for the Quarter (2/3)
Highlights for the Quarter (2/3) Cyient to Acquire IG Partners • Will strengthen Cyient’s Digital Capabilities in the Energy and Mining Industry • Powerful synergy of Cyient’s digital execution capabilities and IGP’s advisory expertise creates a unique value proposition for customers • Acquisition a
Slide 8: Highlights for the Quarter (3/3)
Highlights for the Quarter (3/3) Silver Boeing Performance Excellence Award • The Boeing Company issues the award annually to recognize suppliers who have achieved superior performance. The award is a testament to Cyient's dedication and consistent commitment to delivering value to its business part
Slide 9: Highlights Financial Update
Financial Business Highlights Update Update • Financial Highlights • Revenue • BU performance update • Business Highlights • Income statement update • Margin bridge • Cash generation Annexures CYIENT © 2020 CONFIDENTIAL 9
Slide 10: Revenue for Q2 FY21
Revenue for Q2 FY21 Revenue Q2 FY21 Q1 FY21 Q4 FY20 Q3 FY20 Q2 FY20 QoQ YoY Group $ Mn 135.0 130.6 149.2 155.2 164.2 3.4% -17.8% ₹ Mn 10,033 9,917 10,736 11,060 11,589 1.2% -13.4% Services $ Mn 114.1 112.2 132.3 140.1 140.4 1.7% -18.7% ₹ Mn 8,487 8,521 9,513 9,984 9,902 -0.4% -14.3% DLM $ Mn 20.9 18
Slide 11: Income statement for Q2 FY21
Income statement for Q2 FY21 All Figures in ₹ Mn Q2 FY21 Q1 FY21 Q2 FY20 QoQ EBIT Movement Revenue 10,033 9,917 11,589 • Consolidated EBIT margin stood at 11.0%; up EBIT (Reported) 1,105 511 1,110 586 bps QoQ PAT (Reported) 839 814 985 • Services margin at 12.2%; higher by 542bps QoQ driven by impro
Slide 12: EBIT margin bridge for Q2 FY21
EBIT margin bridge for Q2 FY21 Particulars EBIT Q1 FY21 (Group) 5.2% Add: DLM impact 160 bps EBIT Q1 FY21 (Services) 6.7% Tailwinds in Q2 FY21 Improvements in operational metrics 327 bps Lower restructuring cost 90 bps Lower other direct cost 110 bps Volume impact and lower spend on SGA & depreciati
Slide 13: Cash Generation for Q2 FY21
Cash Generation for Q2 FY21 Q2 Q1 Q2 Cash Generation All Figures in ₹ Mn FY21 FY21 FY20 Services • Cash and cash equivalents at a healthy Profit before tax 1,103 1,141 1,270 levels of ₹ 13,509 Mn (+/-) Non-cash & non-operating items 388 380 439 • In Q2, the cash flow conversion stood at Operating pr
Slide 14: Highlights Financial Update
Financial Business Highlights Update Update • Financial Highlights • Revenue • BU performance update • Business Highlights • Income statement update • Margin bridge • Cash generation Annexures CYIENT © 2020 CONFIDENTIAL 14
Slide 15: BU performance Q2 FY21
BU performance Q2 FY21 Services DLM Group Business Units $ Mn QoQ YoY $ Mn QoQ YoY $ Mn QoQ YoY A&D 30.9 -11.5% -35.0% 11.8 -7.4% -34.2% 42.7 -10.4% -34.8% Communications 32.4 7.7% 6.4% 0.1 200.0% -73.9% 32.4 7.9% 5.8% E&U 13.1 -0.9% -29.6% 1.4 10.4% -44.6% 14.5 0.1% -31.4% Transportation 16.3 21.6%
Slide 16: Business Performance & Outlook (1/3)
Business Performance & Outlook (1/3) Aerospace & Defense Aerospace & Defense BU witnessed a de-growth of 10.4% QoQ and 34.8% YoY. The full impact of the Covid crisis was witnessed in this quarter with most customers reducing their spends significantly. We saw growth in our DLM business and are furth
Slide 17: Business Performance & Outlook (2/3)
Business Performance & Outlook (2/3) E&U Energy and Utilities BU has witnessed a growth of 0.1% QoQ and de-growth of 31.4% YoY due to project deferrals in the utilities business and decline in demand for the manufacturing business. We expect traction in the Energy segment driven by our recent acquis
Slide 18: Business Performance & Outlook (3/3)
Business Performance & Outlook (3/3) SIA Semiconductor BU witnessed de-growth of 2.3% QoQ and 12.0% YoY. De-growth was primarily driven by decline in one of the top clients. We expect the softness in this vertical to continue in H2FY21 Portfolio Portfolio BU witnessed a growth of 5.4% QoQ and de-gro
Slide 19: 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 of the curve
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: Thank you
Thank you 21 CYIENT © 2020 CONFIDENTIAL