Cyient DLM Ltd.'s share price plunged by 12.51% on Wednesday after the company reported lackluster earnings for the third quarter of the financial year. Despite an increase in revenue, the company posted a sharp decline in net profit and a reduction in margins. Cyient DLM share price has hit a 17-month low at Rs 515.5, the last time it was in this range was in Aug. 2023.
For the quarter ended December, Cyient DLM's net profit fell by 40.8% year-on-year, dropping to Rs. 10.9 crore from Rs. 18.4 crore in the same period last year. The company's revenue, however, showed strong growth, rising by 38.4% to Rs. 444 crore compared to Rs. 321 crore in the third quarter of the previous year.
Despite the strong revenue growth, Cyient DLM's earnings before interest, tax, depreciation, and amortisation were down 4.1% year-on-year, amounting to Rs. 28.1 crore, compared to Rs. 29.3 crore in Q3 FY24. This led to a decline in the company's margin, which fell to 6.3% from 9.1% in the previous year.
The company's financial results were also adversely affected by merger and acquisition (M&A) related expenses, which had an impact of approximately Rs. 8 crore on both Ebitda and net profit.
On a positive note, Cyient DLM's order book has grown to Rs. 2,142 crore, up from Rs. 1,979 crore in the previous quarter, indicating strong demand for the company's products and services moving forward.
Cyient DLM share price today plunged as much as 12.51% to Rs 521.50 apiece. It did not manage to pare losses much as the stock was trading 12% lower at Rs 524.55 apiece, as of 9:55 a.m. This compares to a 0.28% advance in the NSE Nifty 50 Index.
Cyient DLM share price has fallen as much as 19.11% in the last 12 months. Total traded volume so far in the day stood at 23 times its 30-day average. The relative strength index was at 18.
Out of 10 analysts tracking Cyient DLM, nine maintain a 'buy' and one suggests 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 82.7%.
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