Cyient gains 5% as Q2 consolidated Ebit margin grows 586 bps QoQ to 11%

Shares of Cyient were up 5 per cent to Rs 383 on the BSE on Friday after the company reported 586 basis points (bps) expansion in consolidated EBIT (earnings before interest tax) margin at 11.0 per cent in September quarter (Q2FY21) on a sequential basis. The improvement in margins was led by higher utilisation, lower subcontracting cost, and lower restructuring cost. Consolidated revenue grew 1.3 per cent quarter-on-quarter (QoQ) in constant currency terms.

In rupee terms, revenue grew by 1.2 per cent QoQ to Rs 1,003 crore while EBIT grew by 116.2 per cent QoQ off a very low base to Rs 110.5 crore. The company’s profit after tax increased by 3.0 per cent QoQ mainly from higher operating income driven by higher volume and efficiency.