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Earnings Call

Cyient Earnings Call: Key Takeaways

Transcript of conference call regarding Cyient's $218 million acquisition of TAO Digital to strengthen AI, data engineering, and software capabilities.

Why this was an Alfa AlertNot a filter event. The document discusses an acquisition and future targets rather than a material beat over prior guidance.
Highlights
Revenue growth100% CAGR for target company TAO Digital over last 3 years.
MarginsTargeting 16% to 17% EBITDA margin in CY27.
Demand visibilityStrong feedback from 70% of polled executives in CSAT surveys.
Management confidenceHigh; management expects deal to be EPS accretive in 1-1.5 years.

Growth

Target company TAO Digital has grown at 100% CAGR over the last 3 years; currently roughly $218M valuation.

Outlook

Targeting 16-17% EBITDA margin by CY27; acquisition funded primarily through debt to be serviced by asset's cash flow.

Risks

Integration costs and one-time transaction charges expected in current quarter; 1.5-year timeline for full EPS accretion.

Last quarter's promises, checked

Delivered

  • Guided 40-50% dividend payout → delivered INR16 final dividend (= BEAT)
  • Guided double-digit DLM profitability → delivered 10.3% (= BEAT)
  • Guided DET H2 growth > H1 → delivered 5.5% YoY booking growth (= BEAT)

Partly delivered

  • Guided Project Astro acquisition → delivered paused status with INR71cr charge (= PARTIAL)

Missed

  • Guided 15% EBIT margin by Q4 FY27 → delivered 12.4% normalized EBIT (= MISS)
  • Guided Q4 revenue growth → delivered 2.4% CC degrowth (= MISS)
Source

Earnings Call filed with BSE, NSE: CYIENT. Summary written with AI assistance from the document.

Read the document ↗

Cyient Ltd: key numbers

Share price
₹1,094.70
Market cap
₹12,164 Cr
Revenue (annual)
₹7,268 Cr
Net profit (annual)
₹427.9 Cr
P/E (TTM)
32.2×Sector 22.1×
Promoter holding
24.70%+1.42% QoQ
FII holding
14.53%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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