Shares of Cyient Ltd tanked 20% on Friday, January 24, 2025, hitting a fresh 52-week low of ₹1,410. The sharp decline came after the company reported disappointing Q3 FY25 results, with a sequential profit drop and weaker operational performance.
Key Highlights:
- Profit: Fell 31.7% Q-o-Q to ₹122.3 crore in Q3FY25 from ₹179.1 crore in Q2FY25. Y-o-Y, profit declined by 16.9%.
- Revenue: Increased 4.2% Q-o-Q to ₹1,926.4 crore from ₹1,849.1 crore in Q2FY25, and 5.8% Y-o-Y.
- EBITDA: Dropped 14.4% Q-o-Q to ₹279 crore, with margins contracting 250 basis points to 14.5%.
Operational Performance:
- Y-o-Y EBITDA decreased 14.4% to ₹279 crore from ₹326.1 crore, with margins shrinking by 340 basis points to 14.5%.
- The company’s design-led manufacturing (DLM) business and industrial & energy divisions struggled to sustain growth momentum.
Market Reaction:
The sharp fall in Cyient’s share price reflects investor concerns over its deteriorating profitability and narrowing margins despite a modest rise in revenue.
Analyst View:
- Nuvama has reduced its FY25E/26E EPS by 10.8% and 4.5% on account of lower growth and margins.
- The firm maintains a “Hold” rating with a revised target price of ₹1,660.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.
TOPICS:
Cyient