Cyient shares hit 10% lower circuit following Q3 FY25 results

Shares of Cyient Limited plunged by 10% to ₹1,579.75 on Friday, January 24, 2025, after the company announced its Q3 FY25 results, reporting a sharp decline in net profit. The engineering and IT services provider faced challenges due to slower growth in its major segments and rising costs.

Key Financial Highlights:

• Net profit: ₹122.3 crore, a 31.7% drop from ₹179 crore in Q2 FY25.
• Revenue: ₹1,926.4 crore, up 4.2% from ₹1,849 crore in the previous quarter.
• Total expenses: Increased by 9%, driven by a 26% rise in material costs and a 6% increase in employee expenses.

Segmental Performance:

• Digital, Engineering, and Technology (DET):
  • Revenue: ₹1,480 crore (up 2.1% QoQ, down 0.8% YoY).
  • EBIT: ₹200 crore with a margin of 13.5%.
  • Net profit: ₹124 crore (down 28.3% YoY).
• Design-Led Manufacturing (DLM): Revenue rose by 38%.

The company’s transportation division, a major contributor to the DET segment, witnessed slower growth due to delays in aerospace projects and a slowdown in the rail segment.

Management Changes:

Cyient announced the resignation of Karthikeyan Natarajan as Executive Director and CEO, effective immediately. Natarajan will oversee business operations in the interim. The company also welcomed Debjani Ghosh, a prominent figure at NITI Aayog, to its board as an Independent Director.

Cyient Share Price history