Cyient Limited · NSE:CYIENT
Cyient — Q2 FY24 Earnings Presentation
39 slides from Cyient's earnings presentation, Oct 19, 2023
Slide 1: Exchange filing cover letter: Investor Presentation
19 October 2023 BSE Limited National Stock Exchange of India Ltd PJ Towers 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 issued by the co
Slide 2: Investor Presentation Q2 FY24
INVESTOR PRESENTATION Q2 FY24
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 Managing Director © CYIENT 2023 | Confidential 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 Appointment of Independent NASSCOM Design and Modern Network Director Engineering summit Management Award Nitin Prasad will join the Board as Cyient bagged two prestigious ESRI is the global leader in an Independent Director awards: location intelligence. • During
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 178.4M$ 1,476cr₹ 16.5% Revenue ($) Revenue (₹) EBIT^ +1.0% cc QoQ | +17.1% cc YoY +1.5% QoQ | +22.3% YoY +47 bps QoQ | +406 bps YoY 173Cr₹ 15.77₹ 154cr₹ PAT^ EPS^ FCF © CYIENT 2023 | Confidential +1.5% QoQ | +70.8% YoY +1.4% QoQ | +70.2% YoY -12.7% QoQ | +1
Slide 11: Financial Highlights for the Quarter – Group
Financial Highlights for the Quarter – GROUP 214.9M$ 1,778cr₹ 14.6% Revenue ($) Revenue (₹) EBIT^ +22.3% cc YoY +27.4% YoY +272 bps YoY 183Cr₹ 16.71₹ 36cr₹ PAT^ EPS^ FCF © CYIENT 2023 | Confidential +66.0% YoY +65.5% YoY -47.7% YoY Declared an interim dividend of ₹12 per share ^EBIT, PAT and EPS exc
Slide 12: © CYIENT 2023 | Confidential
Business Highlights Financial Highlights DET Business Update • Business Highlights for • DET (Digital, Engineering & • BU performance the Group Technology) • Business Outlook • Group • Innovative Technology Solutions and Programs © CYIENT 2023 | Confidential Annexures 11
Slide 13: BU Performance for the Quarter
BU Performance for the Quarter Revenue US$ Mn Q2 FY24 QoQ (cc) QoQ ($) YoY (cc) YoY ($) Transportation 55.2 2.7% 2.6% 22.1%* 22.0% Connectivity 41.5 -8.1% -8.5% -12.3% -11.5% Sustainability 49.5 4.9% 4.5% 71.6% 72.7% New Growth Areas 32.1 5.7% 5.5% 5.1% 6.2% DET 178.4 1.0% 0.8% 17.1% 18.1% Order Int
Slide 14: Business Performance & Outlook
BUSINESS PERFORMANCE & OUTLOOK 13
Slide 15: Business Performance & Outlook
BUSINESS PERFORMANCE & OUTLOOK The rising need for adapting and integrating the latest technologies in product offerings, globalization of ER&D activities, the growing collaboration between OEMs and Service Providers, the constant need to shorten the product lifecycles and continuous product cost op
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 ensuring Safety. Autonomous Systems & Development and execution of automated test scripts
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. CyData: A Data platform that enables customers to stream real time
Slide 18: Outlook
OUTLOOK • For FY24, we have guided DET revenue growth to be in the range of 15 – 20% YoY in constant currency terms. We expect to be at the lower end of the range • We expect FY24 DET normalized* EBIT margins to improve by 150 – 250 bps YoY © CYIENT 2023 | Confidential *Normalized EBIT excludes the
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 www.cyient.com With Us Follow us on © CYIENT 2023 | Confidential 20
Slide 22: Annexure Q2 FY24
INVESTOR PRESENTATION ANNEXURE Q2 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 Group witnessed positive Q2 FY24 results, with quarterly Group revenue at $214.9 Mn, growth of 22.3% YoY in constant currency. Cyient’s Digital, Engineering and Te
Slide 24: Message from the Management
Message from the Management Commenting on the results, Mr. Prabhakar Atla, President and Chief Financial Officer, said, “Q2 FY24 witnessed a well-balanced performance in line with our expectations. DET revenue grew by 1% sequentially and 17.1% YoY in constant currency terms. DET EBIT margin, at 16.5
Slide 25: Glossary
GLOSSARY • Cyient Group Business Segments: • Cyient DET: Digital, Engineering & Technology • Cyient DLM • Cyient Others^ • Cyient DET: Consolidated Services + Engineering Parts business* • Transportation: Aerospace + Rail Transportation • Connectivity: Communications • Sustainability: Mining, Energy
Slide 26: DET Metrics
DET METRICS 5
Slide 27: DET Income Statement
DET INCOME STATEMENT Income Statement ₹ Mn Q2 FY24 Q1 FY24 Q2 FY23 Operating Revenue ($ Mn) 178.4 177.1 151.1 Operating Revenue (₹ Mn) 14,762 14,546 12,068 Cost of Revenue 8,825 8,759 7,071 Gross profit 5,937 5,787 4,996 Gross margin % 40.2% 39.8% 41.4% Sales and Marketing 512 498 435 General and Ad
Slide 28: DET Cash Generation for the Quarter
DET CASH GENERATION FOR THE QUARTER Cash Flow Summary (₹ Mn) DET Q2 FY24 Q1 FY24 Q2 FY23 Profit before tax (Reported) 2,197 2,102 949 (+/-) Non-cash & non-operating items 782 890 796 Operating profit before WC changes 2,979 2,992 1,745 (+/-) DSO Movement (Receivables) -796 91 -372 (+/-) Other WC cha
Slide 29: DET Other Income
DET OTHER INCOME DET (₹ Mn) Q2FY24 Q1FY24 Q2FY23 Income from Investments 81 75 97 Realised gains/(losses) on Fwd Contracts -28 -38 47 Unrealised Fx gains/(losses) -80 119 -28 Others 70 -63 66 Other Income 43 93 182 Currency Q2 FY24 Q1 FY24 Q2 FY23 Movement Forward Spot Forward Spot Forward Spot USD
Slide 30: DET Hedge Book
DET HEDGE BOOK Value in Respective Outstanding ForwardContracts Currency Mn. Booked Rate (in ₹) for next 12 Months 150 2.3 (0.5) 30-Sep-23 30-Jun-23 30-Sep-22 0.9 101.1 101.6 116 90.2 87.9 84.2 83.2 1.2 95 3.7 82 62.9 61.7 57.2 53.5 54 59 29 27 20 24 18 14 21 4 6 7 9 14 USD EUR GBP CAD AUD Total (US
Slide 31: DET Other Metrics (1/2)
DET OTHER METRICS (1/2) Revenue by Geography (%) DET Q2 FY24 Q1 FY24 Q2 FY23 Americas 43.0% 43.2% 50.7% Europe, Middle East, Africa 33.4% 34.4% 28.0% Asia Pacific (including India) 23.6% 22.4% 21.3% Onsite/offshore Revenue Split (%) DET Q2 FY24 Q1 FY24 Q2 FY23 Onsite 55.8% 55.6% 52.0% Offshore 44.2%
Slide 32: DET Other Metrics (2/2)
DET OTHER METRICS (2/2) Employees DET Q2 FY24 Q1 FY24 Q2 FY23 Total Headcount 15,441 15,306 15,004 Technical & Pool 14,386 14,386 14,164 Non-Technical 471 380 349 Support 584 540 491 Voluntary Attrition (LTM) 20.4% 23.0% 29.1% Top Clients: Revenue Contribution (%) DET Q2 FY24 Q1 FY24 Q2 FY23 Top 5 2
Slide 33: Group Balance Sheet & Income Statement
Group Balance Sheet & Income Statement 12
Slide 34: Extract of Group Balance Sheet
Extract of Group Balance Sheet Balance Sheet ₹ Mn Q2FY24 Q1FY24 Q2FY23 Foreign Exchange Rate EQUITY AND LIABILITIES $/₹ Q2 FY24 Q1 FY24 Q2 FY23 Shareholders’ funds - Share capital 554 553 552 Average 82.74 82.15 79.89 - Other equity and Non-controlling interest 42,751 38,076 31,230 Closing 83.22 82.
Slide 35: Group Income Statement
GROUP INCOME STATEMENT Income Statement ₹ Mn Q2 FY24 Q1 FY24 Q2 FY23 Operating Revenue ($ Mn) 214.9 205.3 174.8 Operating Revenue (₹ Mn) 17,785 16,865 13,962 Cost of Revenue 11,434 10,695 8,595 Gross profit 6,351 6,170 5,367 Gross margin % 35.7% 36.6% 38.4% Sales and Marketing 608 529 451 General an
Slide 36: EBIT and PAT Walk Q2 FY24 – Reported to Normalized
EBIT and PAT Walk Q2 FY24 – Reported to Normalized EBIT Walk ₹ Mn Q2 FY24 Q1 FY24 Q2 FY23 PAT Walk ₹ Mn Q2 FY24 Q1 FY24 Q2 FY23 Reported EBIT (Group) 2,537 2,369 1,234 Reported PAT (Group) 1,783 1,681 791 Reported EBIT (DET) 2,377 2,225 1,077 Reported PAT (DET) 1,680 1,617 701 Add: Exceptional Items
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 www.cyient.com With Us Follow us on © CYIENT 2023 | Confidential 18